US President Donald Trump has signed an executive order adding a $100,000 fee to H1B visa applications, starting from September 21, 2025. This change aims to protect American jobs but has created confusion and worry among Indian professionals, who make up most H1B holders. Tech companies like Microsoft and Meta are telling their employees to return to the US quickly, and the Indian government is highlighting possible family and economic problems.
What is the H1B Visa and How Does It Work?
The H1B visa is a special work permit from the US that lets companies hire skilled people from other countries for jobs needing expert knowledge, like in technology or engineering. It was started in 1990 to help US businesses when they cannot find enough trained workers at home.
Each year, only 85,000 new H1B visas are allowed, with 20,000 extra for those with advanced US degrees. Because many more people apply—often over 400,000—the US uses a lottery to pick winners. Companies must prove they tried hiring Americans first and pay fair wages to avoid underpaying.
The visa lasts three years and can be renewed once, up to six years total, after which people can apply for a Green Card, but Indians often wait over 10 years due to country limits.
This program has helped bring global talent to the US, especially in tech, where Indian workers from places like IITs fill key roles in software, data, and AI. It starts with the employer filing a petition, and if selected, the worker gets the visa from a US embassy.
How Have Indians Benefited from the H1B Visa Program?
Indians have gained a lot from H1B visas because they provide good jobs in the US, with salaries around $100,000 to $150,000 per year, much higher than in India. This helps families improve their lives, pay for education, and build savings. Many send money back home, called remittances, totaling about $100 billion each year from the US to India, which supports local economies in states like Kerala, Punjab, and Telangana.
The program has boosted India's IT industry, worth over $150 billion in exports to the US, creating jobs at home through companies like TCS and Infosys. It also gives Indian professionals experience in advanced tech, like AI and cloud computing, which they can bring back or use to start businesses.
Overall, it has helped India become a global tech leader, with Indians leading companies like Microsoft and Google.
What Changes Did Trump Make to the H1B Visa and Why?
In his first term from 2017 to 2021, Trump made H1B rules stricter, like requiring higher wages and more checks to stop companies from replacing American workers. His "America First" idea focused on US jobs.
Now, in 2025, he added this $100,000 fee for new petitions to reduce what he calls "abuse" of the program and raise money for training Americans.
The White House says the fee ensures only top talent comes and funds US workforce programs, potentially bringing in over $500 million a year. But critics argue it targets Indians, who hold 70% of H1B visas, and could slow US tech growth.
Who Pays the $100,000 Fee and What is Exempt?
The fee is paid by the employer, not the worker, as US laws say companies must cover all H1B costs to avoid burdening employees. This means big firms like Microsoft might afford it, but smaller ones could stop hiring from abroad.
Exemptions include existing H1B holders, renewals, and extensions—only new applications in the next lottery face the fee. The White House may waive it for "national interest" cases, but details on what that means are still unclear, like for certain skills or industries.
What Remains Unclear About the New Fee?
Some parts are not fully explained, such as exactly what "national interest" exemptions cover or if the fee applies to all new petitions, including transfers between companies. There are questions about how it affects H4 visas for families or if it could face court challenges for being too sudden.
Legal experts say the order might not last long in court, as it could be seen as unfair without proper process, but for now, it creates confusion for workers and firms.
Why Are Companies Like Microsoft and Meta Asking H1B Holders to Return?
Tech companies sent urgent messages asking H1B workers abroad to return by September 21, 2025, to avoid any travel issues when the order starts.
For example, Microsoft and Meta advised staying in the US for at least 14 days and not leaving soon after.
This was out of caution, even though US officials later said existing holders are safe and do not need to rush back or pay to re-enter.
The panic came from early misunderstandings, leading to stories of workers cutting trips short or facing family dilemmas.
How Will This Fee Hike Affect Indian Workers and India's Economy?
For Indian workers, the high fee could mean fewer new job offers, especially for fresh graduates or smaller roles, leading to less migration and possible job losses in related areas at home. Families might face separations if costs stop extensions, affecting spouses on H4 visas who can work after approval and children in US schools.
India's economy could lose from lower remittances and IT exports, with estimates of 0.5-0.6% GDP hit when added to US tariffs on Indian goods.
States like Telangana, a big IT hub, will suffer most, but it might push more work to India, helping local growth in the long run.
Why is the $100,000 Price Tag Causing So Much Worry?
The fee is over 60% of many H1B holders' median salary, making it hard for companies to justify, especially amid tech layoffs.
It worries Indians because it threatens dreams of better lives and could strain India-US ties, with opposition parties in India calling it a sign of weak diplomacy.
Experts say it might push talent to Canada or Europe, hurting US innovation while India gains from returning skills, but short-term pain includes disrupted plans and uncertainty.
What Can India and Affected Workers Do?
India is talking to the US about easing the rules and highlighting humanitarian issues, while workers are advised to check with lawyers and not panic if they have valid visas.
Long-term, India can boost local jobs through programs like Skill India and look for deals with other countries for skilled migration.
Companies might shift more operations to India, creating opportunities at home and reducing dependence on H1B visas.
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