How Raising Fees on H1B by Trump Will Impact Indian Students?

Recent Clarification on the H1B Visa Fees

As the news came regarding the increased H1B visa fees, there was a lot of confusion amongst all. A recent clarification stated the following:

• The $100,000 H1B visa fee applies only to new visas, not renewals, and not current visa holders.
• This raised fee is not an annual fee; instead, it is a one-time payment.
• Those who are currently on an H1B and are outside the USA are not liable to pay the $100,000 fee to enter back in the USA.

What is the New Rule on H1B?

The recent announcements from the USA government have introduced some important changes to the H1B visa. The following are some of the key points.

• Starting from September 21, 2025, companies that sponsor new H1B visa holders will be required to pay a fee of $100,000. This does not apply to H1B renewals.

• This rule will be valid for 12 months initially and will be renewed if found beneficial for the national interest.

• This fee is being introduced as the USA administration feels that the H1B program has been exploited by companies, especially in the IT sector.

• These new regulations will be more challenging for the tech firms in the USA to recruit talent from abroad, especially from India. Amazon, Microsoft and Meta are some of the affected firms. As per the USCIS, the top four Indian IT companies have been granted around 16,200 fresh visas in the financial year 2024. This means that with the new fee of 100,000,thecompanieswillbepayingaround1.6 billion, excluding the cost involved in the H1B renewals.

• In certain situations, the Secretary of Homeland Security may waive the fee if hiring specific individuals is seen as being in the ‘national interest’.

• The Department of Labor has been instructed to increase the current wage standards for H1B workers.

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How Raising Fees on H1B Will Impact Indian Students?

Meta and Microsoft have instructed all of their H1B visa holders to stay in the USA for at least 14 days. They also encouraged those who are currently outside the USA to return within the next 24 hours. Indian students who are planning to study in USA or are planning to work in USA after graduation are going to be impacted by this new rule on H1B visa. The impact on the students is as follows:

• Reduced Sponsored Job Opportunities: With the high cost of $100,000 for each H1B worker, many USA companies will plan strategically before sponsoring international graduates. Large companies like Microsoft, who hires thousands of Indian engineers and IT professionals, are particularly affected by this fee hike. As a result, there will be a reduction in job opportunities for Indian students.

• Increased Competition: Companies that can manage the fee will prioritize sponsorships for senior positions rather than entry-level jobs. This means that fresh Indian graduates from USA universities may find it competitive to earn a sponsored position and gain work experience in the US.

• Financial Stress and Uncertainty: Indian students invest heavily in tuition and living expenses while studying in the USA. With this uncertainty of achieving an H1B visa after their OPT (Optional Practical Training), the return on investment will be low. The USA might also see a decline in the number of international students.

• Shorter Career Pathways: If the number of H1B sponsorships decreases, students may only be able to stay in the US during their OPT period, which lasts 1 to 3 years, depending on STEM extensions, after which they might have to return to their home country to look for career opportunities.

H1B Visa Impact on Indian IT Sector

The recent decision by the USA administration to increase the H1B visa fees to $100,000 will impact India’s IT services sector. Companies like TCS, Infosys, Wipro, and HCL have relied on the H1B pathway to send skilled workers to work on projects for their clients in the USA. This increase in costs will make the companies selective about who they send abroad. As a result, Indian IT firms might start hiring more talent locally in the USA. In addition, with fewer H1B visas available, Indian tech professionals looking to work in the USA could find fewer career opportunities

What is the Gold Card in USA?

In addition to the recent increase in H1B fees, the US administration has introduced a new investment-based visa option called the Gold Card. To qualify for permanent residency through this pathway, applicants need to invest or gift $1 million and submit their application along with a non-refundable processing fee. The United States Citizenship and Immigration Services (USCIS) will then carry out a thorough background check and assess each applicant to confirm their eligibility. Once you are approved, the Gold Card allows residency across all 50 states and territories.

Apart from this, there is another card known as the Platinum Card. For this, the investment is $5 million. Platinum Card holders get added benefits such as the ability to spend up to 270 days in the USA without paying taxes on non-US income. This could be a great opportunity for elite individuals looking to obtain USA residency.

Conclusion

The recent increase in H1B fees and the launch of investment-based visas, like the Gold and Platinum Cards, have impacted Indian students looking to work in the USA. It is highly important now for Indian students to carefully consider the investment benefits of studying in the USA, especially when the chances of getting a sponsored job after graduation are low. Additionally, having alternative plans in places like Canada, the UK, Australia, or European countries can offer great options for study, work, and immigration. For students who are currently planning to study abroad, they must research well on various emerging destinations with more flexible visa policies and career opportunities. The step of increasing the H1B visa fee might benefit the Indian IT and tech industry and companies operating in India; this might create opportunities for tech graduates in India itself.

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