US President Donald Trump has signed a new executive order that adds a $100,000 fee to each new H1B visa application, starting from September 21, 2025. This change aims to protect American jobs by making it more expensive for companies to hire foreign skilled workers. It has raised worries in India because many Indian professionals use H1B visas to work in the US tech industry, and this could affect their job opportunities and family lives right now.
What is the H1B Visa and Why Was It Created?
The H1B visa is a type of work permit given by the United States to allow companies there to hire skilled workers from other countries for jobs that need special knowledge, like in technology or engineering.
It started in 1990 as part of a law called the Immigration Act, to help US businesses fill gaps where there are not enough trained American workers.
For example, if a company needs a software expert and cannot find one in the US, they can apply for an H1B visa to bring someone from abroad.
This visa lasts for three years at first and can be renewed for another three years, making a total of six years.
After that, the worker can try to get a permanent stay in the US, called a Green Card, but for people from India, this wait can be very long, sometimes more than 10 years, because there is a rule that limits Green Cards from any one country to just 7% of the total each year.
How Does the H1B Visa Application Process Work?
Every year, the US allows only 85,000 new H1B visas, with 20,000 of them set aside for people who have a master's degree or higher from a US school.
Because so many people want these visas—sometimes over 400,000 applications in one year—the government uses a lottery system to pick who gets them.
Companies must show that they tried to hire an American worker first but could not find one, and they have to pay the foreign worker at least the normal salary for that job to avoid paying less than to Americans.
The process starts with the employer filing a petition, and if it wins the lottery, the worker can apply for the visa at a US embassy.
This system helps bring in talent for fields like IT, where India has many skilled people from colleges like the Indian Institutes of Technology (IITs).
What Changes Has Trump Made to the H1B Visa Before and Now?
During his first time as president from 2017 to 2021, Trump made rules stricter for H1B visas, like asking for higher salaries for visa holders and checking more closely to stop companies from using the program to replace American workers.
His idea was "America First," meaning prioritize jobs for people in the US.
Now, in 2025, he has added this $100,000 fee for each new petition, which the White House says is to make sure only the best-skilled workers come and to raise money for training Americans.
But it is not for renewals or existing visas, and people with current H1B visas do not have to pay to come back to the US.
This fee could bring in over $500 million a year for the US government.
How Will This Fee Hike Affect Indian Workers and Their Families?
Many Indian families depend on H1B visas for better jobs and money sent back home, called remittances, which are about $100 billion each year from the US to India.
With the new fee, smaller companies might not afford to hire Indians, leading to fewer job chances.
Families could face problems like separation if visa costs stop extensions or new moves.
For example, spouses on H4 visas, who can work after some steps, and children studying in the US might have to return home suddenly.
States in India like Telangana, where IT jobs are big, could see less money coming in and more job losses in related areas.
What Are the Economic Effects on India and the US-India Relationship?
India's economy gets a boost from H1B workers because they help companies like Infosys and TCS provide services to the US, growing India's IT sector by 40% in recent years.
But this fee might make US companies hire more locals or move work to India, which could help India in the long run but hurt short-term.
Combined with US tariffs on Indian goods like textiles at 50%, this could reduce India's GDP by 0.5-0.6%.
India's government is talking to the US about this, but no strong actions yet.
Groups like NASSCOM say it could weaken trust between the two countries and make the US less innovative since they need global talent for things like AI.
Why Might This Policy Hurt US Companies and Innovation?
Big US tech companies like Amazon and Microsoft say they need H1B workers to stay ahead in technology because there are not enough skilled Americans for all jobs.
If the fee makes hiring harder, it could slow down new ideas in areas like software and data science.
Some experts think this is like a self-goal for the US, as talent might go to other places, helping competitors.
For India, it could mean more work staying at home, building local skills.
What Can India Do to Handle This Change?
India could push for better talks with the US to ease the rules or find other ways, like more student visas or trade deals.
At home, India can focus on creating more jobs in tech and training people so they do not need to go abroad as much.
Programs like Skill India can help build a stronger workforce.
Also, looking at other countries for work chances, like Canada with its easy points-based system, could be an option for Indian professionals.
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