Discover the latest on the H-1B visa, including the new $100,000 fee introduced in September 2025. Learn about its impact on tech industries, foreign workers, and U.S. jobs in this detailed H-1B visa explainer.
The H-1B visa program has long been a cornerstone of U.S. immigration policy, enabling American companies to hire highly skilled foreign professionals in specialized fields like technology, engineering, and medicine. While it has fueled innovation, it has also sparked controversy over its impact on U.S. jobs and wages.
On September 19, 2025, President Donald Trump signed a presidential proclamation introducing a $100,000 annual fee for new H-1B visa petitions, effective September 21, 2025. This marks one of the most dramatic shifts in decades, triggering sharp reactions from tech giants, industry groups, and immigrant communities.
This explainer breaks down the basics of the H-1B visa, its history, controversies, the new policy, and its potential ripple effects across industries and economies.
What Is the H-1B Visa?
The H-1B visa is a nonimmigrant visa under the U.S. Immigration and Nationality Act, designed for temporary employment of foreign workers in “specialty occupations” requiring at least a bachelor’s degree or equivalent.
Key Features of the H-1B Program
- Duration: Initially granted for three years, extendable up to six. Many use it as a pathway to permanent residency.
- Annual Cap: 85,000 new visas per year (65,000 general + 20,000 for U.S. master’s degree holders). Extensions and nonprofit hires are exempt.
- Employer Sponsorship: U.S. employers must petition USCIS, proving the role qualifies and wages meet prevailing standards.
- Lottery System: Due to high demand, USCIS runs a random lottery when applications exceed the cap.
FY 2025 data: Amazon secured 12,000+ approvals, Microsoft and Meta around 5,000 each, while Indian firms like TCS and Infosys also dominated. India accounts for 71% of H-1B approvals, followed by China at 11.7%.
Must Read: Unemployment in India in 2025: Trends Over the Last Decade and Measurement Methodology
A Brief History of the H-1B Program
The H-1B program has evolved through several milestones:
- 1952–1990: Origins in the Immigration and Nationality Act, restructured in 1990 with a cap of 65,000.
- 1990s: Dot-com boom fueled Silicon Valley’s reliance on foreign talent.
- 2000s: Cap temporarily raised to 195,000; post-9/11 checks slowed approvals.
- Obama Era (2009–2017): Fraud prevention tightened; STEM OPT pipeline expanded.
- Trump’s First Term (2017–2021): “Buy American, Hire American” raised scrutiny and denial rates.
- Biden Era (2021–2025): Beneficiary-centric reforms reduced multiple registrations.
- By 2025: STEM foreign workers in the U.S. rose from 1.2M (2000) to 2.5M (2019), while STEM job growth lagged at 44.5%.
Why Is the H-1B Visa Controversial?
Supporters argue the H-1B boosts U.S. competitiveness, filling skill gaps in areas like AI and cybersecurity. Critics counter that it suppresses wages and displaces American workers.
Major Controversies
- Wage Suppression: Loopholes allow lower “prevailing wage” levels. A 2025 case saw an IT firm lay off 1,000 U.S. workers while approving 1,100 H-1Bs.
- Outsourcing Abuse: Consulting firms use H-1Bs to shift jobs offshore, sometimes requiring U.S. employees to train replacements.
- Fraud & Multiple Registrations: Reforms in 2024–2025 reduced duplicates, but challenges remain.
- Green Card Backlogs: Heavy reliance on Indian and Chinese applicants creates years-long waits.
- Political Divide: Tech leaders push expansion, while lawmakers propose a $150,000 salary floor to limit misuse.
Recent changes also include mandatory in-person interviews in applicants’ home countries (from September 6, 2025), adding processing delays.
Trump’s $100,000 H-1B Fee Proclamation
On September 19, 2025, Trump invoked Section 212(f) to impose a $100,000 annual fee on new H-1B petitions for workers outside the U.S.
Key Details
- Who It Affects: New applicants abroad. Current holders are exempt unless they leave for over 12 months.
- H-4 Dependents: Indirectly affected through family costs and uncertainties.
- Rationale: White House cites wage suppression and displacement of U.S. workers.
- Additional Measures:
- A “Gold Card Visa” at $1M (individual) or $2M (corporate) for expedited processing.
- Pending DHS rule to shift from lottery to wage-based selection.
Tech giants urged H-1B employees abroad to return before September 21 to avoid complications.
Impacts on Industries, Workers, and Economies
On U.S. Industries
- Tech Giants: Firms like Amazon and Microsoft may absorb costs, but startups and mid-tier firms face barriers.
- Economy: Higher wages could benefit U.S. STEM grads, but talent shortages risk slowing innovation.
On Workers
- Foreign Talent: Many may pivot to Canada or Europe, ending the “Indian IT dream.”
- American Workers: Could see wage growth, but also project disruptions.
On Global Economies
- India: Industry leaders warn of disruption; critics call it a “blow” to outsourcing models.
- U.S.–India Relations: Potential strain on trade ties and a dip in remittances (over $125B annually).
Reactions and Legal Challenges
- Industry: Indian tech bodies call the move “disruptive” and harmful to innovation.
- Politics: Supporters hail it as job protection; immigrant rights groups prepare lawsuits.
- Tech Leaders: Some warn this “pay-to-play” model risks driving talent elsewhere.
- Social Media: Divided between “America First” supporters and those predicting India’s “brain gain.”
What’s Next?
Legal challenges could delay or block implementation, but USCIS guidance is expected soon. Proposals to end OPT or shift to highest-bidder selection remain under consideration.
The $100,000 H-1B visa fee highlights the ongoing tension between protecting domestic jobs and attracting global talent—decisions that may shape the U.S. workforce and tech sector for decades to come.
Must Read: Best Countries for Tech Careers After Graduation
Frequently Asked Questions (FAQs) on the H-1B Visa $100,000 Fee
1. Who has to pay the new $100,000 H-1B visa fee?
The fee applies only to new H-1B petitions filed for workers outside the U.S. starting September 21, 2025. Existing H-1B holders are exempt unless they leave the U.S. for more than 12 months.
2. Are H-1B dependents (H-4 visa holders) affected?
Indirectly, yes. While H-4 spouses and children do not pay the fee themselves, the cost burden on employers could affect family relocations and long-term sponsorship decisions.
3. Will U.S. companies continue hiring through the H-1B program?
Large tech firms like Amazon and Microsoft may still absorb the fee to secure top talent. However, startups and mid-sized firms could struggle, leading to fewer sponsorships and reduced diversity in the program.
4. Does the $100,000 fee replace the existing H-1B visa fees?
No. It is in addition to existing USCIS filing fees ($460–$4,500), making the total cost per new petition potentially over $105,000.
5. What is the new “Gold Card Visa”?
The proclamation introduced a premium fast-track option:
- $1 million fee for individuals
- $2 million fee for corporations
This is aimed at ultra-high-value talent but has raised concerns of creating a “pay-to-play” immigration system.
6. How will this affect Indian IT workers?
Since India accounts for over 70% of H-1B approvals, the impact is severe. Many skilled workers may shift toward Canada, the EU, or Australia, where immigration policies remain more welcoming.
7. Can this policy be challenged in court?
Yes. Immigration lawyers and advocacy groups have already hinted at legal challenges, questioning whether Section 212(f) of the Immigration and Nationality Act allows the President to impose such high fees unilaterally.