H1B Visa Changes Explained: Meaning, Latest Tariffs, and Impact on Workers and Employers

The American job market has been shaken by significant changes to the H1B visa program. President Donald Trump has signed a proclamation that will require a $100,000 application fee for H-1B visas, in what experts are calling one of the most dramatic changes to the skilled worker program in decades. The proclamation went into effect on September 21, 2025.

This massive policy shift affects thousands of skilled foreign workers, particularly from India, who have long relied on this visa pathway to build careers in America's technology and innovation sectors. Understanding these changes is crucial for both current visa holders and those planning to apply.

What is the H1B Visa Program?

The H1B visa serves as America's primary gateway for highly skilled foreign professionals seeking to work in specialised fields. Created under the Immigration Act of 1990, this program allows US employers to hire international talent when they cannot find qualified American workers for specific roles requiring advanced education and expertise.

The visa covers professionals in technology, engineering, healthcare, research, and other specialised industries. To qualify, applicants typically need at least a bachelor's degree in their field and must be sponsored by an American employer who demonstrates the role requires specialised skills.

Currently, the program issues 65,000 visas annually, with an additional 20,000 reserved for individuals holding advanced degrees from US universities. Due to overwhelming demand, visa allocation typically occurs through a lottery system, making the process highly competitive.

Who Benefits Most from H1B Visas?

Indian professionals have been the primary beneficiaries of the H1B program for years. Between October 2022 and September 2023, Indian nationals received 72% of nearly 400,000 H1B visas issued. Chinese professionals ranked second, accounting for approximately 11.7% of approved applications.

Major Indian technology companies, including Infosys, TCS, HCL, and Wipro, have historically received thousands of visa approvals annually for their employees. The program has been especially vital for the information technology sector, where computer-related occupations make up the majority of approved petitions.

The visa allows holders to work in the United States for three years initially, with the possibility of one renewal for a total of six years. This timeframe often provides enough opportunity for professionals to apply for permanent residency through other immigration pathways.

H1B Visa New Fee

The $100,000 is a one-time payment and not an annual charge, representing a dramatic increase from previous fees that ranged from hundreds to a few thousand dollars depending on company size and circumstances.

The new $100,000 fee only applies to new visas, not renewals or current visa holders, providing some relief for existing H1B workers. However, the impact on future applications and new entries into the program is expected to be substantial.

The policy also includes provisions for national interest waivers, allowing exceptions for individuals, companies, or industries deemed essential to American interests, though specific criteria for these waivers remain unclear.

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H1B Visa Impact on Workers and Job Seekers

The fee increase creates significant barriers for many professionals, particularly those in early career stages or from smaller companies. The substantial cost may force employers to be more selective about which positions truly require international talent, potentially reducing opportunities for foreign workers.

India's Foreign Ministry says the Trump administration's move to increase H1-B visa fees may have humanitarian consequences, highlighting concerns about how these changes might affect families and professional relationships built around the visa program.

For current H1B holders, the immediate impact appears limited since the fee does not apply to renewals or existing visa holders travelling in and out of the United States. However, career mobility and job changes may become more complicated as employers factor in the higher costs.

H1B Visa Effects on American Companies

American employers, particularly in the technology sector, now face substantially higher costs when hiring international talent. This change may force companies to reconsider their hiring strategies and potentially invest more in training domestic workers or relocating operations to countries with more accessible talent pools.

Smaller companies and startups, which often rely on diverse international talent to compete with larger corporations, may find the new fee structure particularly challenging. The one-time $100,000 payment represents a significant investment that many emerging companies may struggle to justify.

Large technology companies that have historically relied heavily on H1B workers will need to reassess their workforce planning and may need to explore alternative visa categories or increase compensation for American workers to attract local talent.

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