US H-1B Visa Fee Hike: A Strategic Shift Impacting Indian Workers

US President Donald Trump's new executive order, which raises the cost of sponsoring H-1B visa applicants to $100,000, has sparked concern among Indian visa consultants. Bikram Chabhal, president of the Association of Visa and IELTS Centres, warned that the fee hike primarily affects Indian workers, who constitute 70% of H-1B visa holders.

According to Chabhal, the increased fees could pose a substantial challenge for companies, as the annual expense per visa reaches $100,000. This policy shift is seen as a significant disadvantage for Indian professionals who have long utilized this pathway for US employment and citizenship opportunities.

Despite the immediate drawbacks, Chabhal suggested the policy change might benefit India in the long run by encouraging skilled workers to return home. US Commerce Secretary Howard Lutnick emphasized the strategy behind the fee increase is to encourage local training for lower-skilled roles while reserving H-1B visas for higher-level positions.

The visa's structure remains unchanged at three years, with a possible renewal, but its increased cost aims to limit use to justified positions. Lutnick noted that Indian IT companies, including Infosys, TCS, and Wipro, would face challenges as the program targets senior roles.

While H-1B quotas remain at 85,000 visas annually, the administration anticipates fewer applications due to cost. Implementation will begin soon, with additional vetting processes, as the policy aims to protect American jobs and boost revenue by attracting high earners.