Washington DC [US], September 20 (HBTV): The Trump administration has announced a sharp increase in H-1B visa fees, imposing a USD 100,000 annual charge that will significantly affect how American companies hire skilled foreign workers, particularly Indian IT professionals who form the largest group of beneficiaries.
Commerce Secretary Howard Lutnick revealed the changes during a press call on Friday, describing the hike as a deliberate move to eliminate what the administration views as lower-skilled training positions while preserving opportunities for highly skilled workers.
The new USD 100,000 annual fee represents a steep rise from the current processing costs, which are usually only a few thousand dollars. Companies will have to pay this fee in addition to existing vetting charges, with the administration still deciding whether to collect the full amount upfront or annually.
‘A company that wants to buy an H-1B visa... it’s USD 100,000 per year,’ Secretary Lutnick explained. The visa structure remains unchanged at three years with one possible renewal, totalling six years.
The fee applies to all H-1B positions regardless of salary or skill level, making the programme viable only for roles that can justify such a substantial cost. The administration explicitly aims to end what it calls ‘trainee programmes’—positions where less experienced foreign workers are hired for training and development under H-1B visas.
‘No longer will you put trainees on an H-1B visa—it’s just not economic anymore,’ Lutnick said. ‘If you’re going to train people, you’re going to train Americans.’
The changes could have a major impact on Indian IT services companies such as Infosys, TCS, and Wipro, which have long relied on H-1B visas to bring junior and mid-level engineers to the US for client projects and skills development. Indian nationals consistently receive the majority of H-1B approvals, with Indian IT firms among the largest sponsors.
‘If you have a very sophisticated engineer and you want to bring them in because they have expertise, then you can pay USD 100,000 a year for your H-1B visa,’ Lutnick noted, suggesting that the programme will now focus only on senior-level positions.
Lutnick claimed that technology companies support the changes because they ensure certainty and speed in processing applications. He said discussions with ‘hundreds of companies’ informed the fee structure.
‘They are very happy about it, because they would like a process that is known, that is clear and that is swift,’ he said.
However, the sharp increase in costs will likely make companies more selective about which roles justify sponsorship, potentially reducing applications despite unchanged visa caps. Current annual limits remain at 65,000 regular H-1B visas, plus 20,000 for advanced degree holders from US universities.
‘Remember, these are the same cap, it’s the same visa. There’ll just be less of them issued because they used to be free, and now they cost USD 100,000,’ Lutnick explained.
The new fees will be introduced alongside stricter vetting procedures by the Department of Homeland Security. While no start date has been confirmed, the administration indicated the changes will take effect within weeks. Companies with existing H-1B workers may face immediate costs at renewal, as the new fee structure will apply to all applications processed after implementation.
The administration has framed the changes as a way to protect American workers and generate revenue for the US Treasury. Officials argue that low-cost H-1B visas encouraged companies to hire foreign workers instead of training Americans.
‘The idea is to bring in high earners, people with money,’ Lutnick said, contrasting this with what he described as previous policies that brought in ‘low earners’ who ‘take jobs from Americans.’
The new H-1B policy reflects the Trump administration’s broader approach to reshape US immigration around economic contribution rather than humanitarian or family-based considerations. While highly skilled workers remain welcome, the steep cost is intended to ensure only positions of substantial economic value justify foreign hiring.
For Indian professionals and companies, the changes indicate a need to adapt strategies for US market engagement, likely accelerating a shift toward higher-value services and reduced reliance on temporary worker transfers.
(ANI)