Trump plans to implement a $100,000 fee for H-1B worker visas, according to the White House announcement.
The tech industry is preparing for potential changes, as U.S. President Donald Trump plans to impose a new $100,000 application fee for H-1B visa holders. This move, if implemented, could significantly affect IT companies that rely on H-1B visa holders, such as Cognizant Technology Solutions, Infosys, and Wipro, whose shares experienced a decline of over 2% following the announcement.
The H-1B visa programme, which allows employers to bring in engineers, educators, healthcare workers, and other professionals, has been a contentious issue between President Trump's conservative base and the tech industry. Critics argue that the programme allows firms to suppress wages and sideline American workers who could do the jobs. On the other hand, supporters, including Elon Musk, CEO of Tesla, contend that the programme brings in highly skilled workers essential for filling talent gaps and keeping firms competitive.
Under the current system, H-1B applicants pay an initial fee of $215 for the lottery, and subsequent fees that can amount to several thousand dollars. The proposed fee could potentially deal a significant blow to the technology sector, as stated by a White House official.
In 2021, India was the largest beneficiary of H-1B visas, accounting for 71% of approved beneficiaries, with China being a distant second at 11.7%. In the first half of 2025, Amazon.com had more than 10,000 H-1B visas approved.
The tech giants Microsoft and Meta Platforms had over 5,000 H-1B visa approvals each in the same period. However, the companies and the Indian embassy in Washington did not respond to Reuters requests for comment.
The duration of H-1B visas is typically between 3 to 6 years. The proposed fee increase could potentially deter some companies from applying for these visas, leading to a decrease in the number of foreign workers in the tech sector.
As the situation unfolds, it remains to be seen how the tech industry will adapt to these potential changes and whether the proposed fee will indeed impact the sector as predicted.
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