H-1B Visa Shake-Up: Trump’s $100K Move and Its Impact on Indians

Introduction:

The H-1B visa has long been a gateway for skilled professionals, particularly in the tech sector to work in the United States of America (‘USA’). Indian engineers, scientists and IT professionals account for the majority of its beneficiaries. However, a sweeping proclamation by President Trump in September 2025 threatens to upend this framework. This article examines:

• the content of the “H-1B fix”
• its disproportionate impact on Indians, and
• possible legal, diplomatic, and strategic recourses.

Trump’s New H-1B Move:

On 19 September 2025, President Trump issued a proclamation imposing a one-time $100,000 fee on all new H-1B visa petitions, in addition to existing filing fees.¹ The proclamation applies only to new petitions filed after 21 September 2025; it does not extend to renewals of existing H-1B visas.² The Secretary of Homeland Security retains discretion to exempt individuals, companies, or sectors if such hiring is deemed in the “national interest”. Legal ambiguities remain unresolved: whether the fee applies to change-of-status cases, visa-exempt Canadians, or pending petitions; how DHS will administer exemptions; and whether the proclamation oversteps statutory authority granted by Congress.⁴ Legal challenges are widely anticipated.⁵

Impact on Indians:

• Dependency on H-1B:

Indians account for nearly 70% of all H-1B recipients⁶. Indian IT services firms, outsourcing companies and consulting entities rely heavily on the program to staff USA projects. The fee disproportionately raises barriers for Indian applicants and employers.

• Challenges:
• Financial deterrence — Smaller firms and startups may no longer be able to sponsor Indian professionals.
• Project disruptions — The firms in USA may offshore projects back to India, Mexico, or Eastern Europe.⁷
• Uncertainty — Indian professionals have scrambled to re-enter the USA before the cut-off date, while others consider alternatives in Canada or the UK.⁸
• Economic effects — India has warned of disruptions to services exports and remittances.⁹
• Reverse migration — Some commentators argue this could accelerate talent retention within India’s growing tech ecosystem.¹⁰
• Recourse Available:
• Judicial Review in USA Courts

Potential grounds include:

• Ultra vires action conflicting with Congressional statute,
• Violation of the Administrative Procedure Act (no notice or proper rulemaking),
• Arbitrariness and unequal application, and
• Disproportionate effect on Indian nationals as an indirect discrimination claim.

Litigation is expected, with plaintiffs likely to seek injunctions on collection of the fee.¹¹

• Diplomatic Action

India has formally raised concerns, highlighting economic and family disruptions.¹² Bilateral negotiations may push for exemptions or reciprocal arrangements.

• Congressional Oversight

The lawmakers in USA have reintroduced bills to reform H-1B and L-1 visa programs, citing Trump’s move as excessive.¹³ Legislative pushback could limit executive overreach.

• Strategic Business Adaptation

Indian IT firms may accelerate offshoring, establish global capability centers, and shift focus to automation and remote work models.¹⁴

• Alternative Immigration Pathways

Indian professionals may increasingly explore Canada, the UK, Australia, and EU markets as substitutes for the U.S. route.¹⁵

Conclusion:

Trump’s proclamation marks a turning point in U.S. skilled immigration policy. While framed as protecting domestic jobs, it disproportionately impacts Indians, who form the backbone of the H-1B ecosystem. Legal challenges, diplomatic negotiations, and industry adaptations are inevitable. For India, the move may paradoxically catalyse domestic innovation and reverse migration of skilled talent. The coming months will determine whether courts uphold or strike down this unprecedented executive action and whether the “American dream” remains accessible for Indian professionals.

Footnotes

1. Associated Press, Trump signs proclamation adding $100K annual fee for H-1B visa applications (Sept. 19, 2025), link.
2. Id.
3. American Immigration Council, Trump’s $100,000 H-1B fee and national interest exemptions (Sept. 2025).
4. Id.
5. Reuters, Trump’s H-1B visa crackdown upends Indian IT industry’s playbook (Sept. 21, 2025), link.
6. American Immigration Council, H-1B Visa Facts (2025).
7. Reuters, Trump visa curbs push U.S. firms to consider shifting more work to India (Sept. 30, 2025), link.
8. Reuters, supra note 5.
9. Reuters, India says U.S. H-1B visa fee hike could hit services exports, remittance (Sept. 26, 2025), link.
10. Times of India, Trump’s H-1B move may help India retain talent (Sept. 2025).
11. Reuters, supra note 5.
12. Reuters, supra note 9.
13. Reuters, U.S. senators reintroduce bill to reform H-1B, L-1 visa rules (Sept. 29, 2025), link.
14. Reuters, supra note 7.
15. Times of India, supra note 10.