"It's Just Not Economic Anymore": US On Imposing $100,000 H-1B Visa Fee

US President Donald Trump and Commerce Secretary Howard Lutnick (File)

The Trump administration has unveiled an extraordinary increase in H-1B visa fees, implementing a USD 100,000 annual charge that will drastically transform how American corporations employ skilled foreign workers, with particular consequences for Indian IT professionals who represent the largest contingent of beneficiaries.

During a Friday press briefing, Commerce Secretary Howard Lutnick detailed these modifications, characterizing the substantial fee increase as a calculated approach to eliminate what the administration views as lower-skilled training positions while maintaining pathways for exceptionally talented professionals.

This new $100,000 yearly fee marks a profound escalation from existing H-1B processing expenses, which typically total just a few thousand dollars. Organizations will bear this cost in addition to current vetting fees, with administration officials still contemplating whether to collect the entire amount in advance or on an annual basis.

"A company wanting to secure an H-1B visa... it's USD 100,000 per year," Secretary Lutnick clarified. The visa structure remains unchanged: three years with one possible extension for a maximum of six years.

This fee applies universally to all H-1B positions regardless of compensation level or expertise requirements, rendering the program financially feasible only for roles that warrant the considerable investment.

The administration has explicitly stated its intention to eliminate what it terms "trainee programmes" - positions where corporations recruit less experienced foreign talent for development and training on H-1B visas.

"No longer will you put trainees on an H-1B visa - it's just not economic anymore," Lutnick explained. "If you're going to train people, you're going to train Americans."

This policy shift could profoundly affect Indian IT service providers such as Infosys, TCS, and Wipro, which have traditionally utilized H-1B visas to transfer junior and mid-level engineers to the US for client projects and professional development.

Indian nationals consistently constitute the majority of H-1B recipients, with Indian technology firms among the principal sponsors.

The substantial fee increase threatens to fundamentally alter this established pattern.

"If you have a very sophisticated engineer and you want to bring them in because they have expertise, then you can pay $100,000 a year for your H-1B visa," Lutnick indicated, suggesting the program will now target exclusively senior-level positions.

Secretary Lutnick asserted that technology companies endorse these changes because they provide predictability and efficiency in application processing. He mentioned that consultations with "hundreds of companies" informed the $100,000 fee determination.

"They are very happy about it, because they would like a process that is known, that is clear and that is swift," he stated regarding corporate responses.

Nevertheless, the substantial cost increase will likely compel companies to become far more selective about which positions justify H-1B sponsorship, potentially reducing overall applications despite maintained visa quotas.

The administration emphasized that H-1B visa allocations remain unchanged - the program will issue the identical number of visas but anticipates fewer applications due to financial barriers. 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 elaborated.

The new fees will be implemented alongside enhanced vetting procedures by the Department of Homeland Security. While no specific implementation date was announced, the administration indicated changes would take effect within weeks of the current announcement.

Organizations with existing H-1B employees may experience immediate impacts when renewal periods arrive, as the new fee structure will apply to all applications processed after implementation.

The administration framed these changes as safeguarding American workers and generating revenue for the US Treasury. Officials contend that free or low-cost H-1B visas encouraged corporations to hire foreign workers instead of training Americans.

"The idea is to bring in high earners, people with money," Lutnick stated, contrasting this with what he characterized as previous policies that brought in "low earners" who "take jobs from Americans."

These H-1B modifications represent an element of broader Trump administration initiatives to restructure US immigration policy around economic contribution rather than humanitarian or family-based considerations.

While maintaining that highly skilled professionals remain welcome, the administration clearly intends to significantly elevate barriers, ensuring that only positions with substantial economic value justify the expense of foreign recruitment.

For Indian professionals and corporations, these changes signal a necessity to adapt strategies for US market engagement, potentially accelerating trends toward higher-value services and reduced dependence on temporary worker transfers.