In a major policy shift, U.S. President Donald Trump announced a $100,000 one-time fee for all new H-1B visa petitions for workers currently outside the US, effective September 21, 2025. The measure aims to protect American jobs by making onsite hiring costlier for tech companies.
"This action does not apply to existing H-1B visa holders, approved petitions, in-country renewals, or status changes," the White House clarified. It also confirmed that re-entry for current visa holders will not attract the new fee.
What It Means for Indian Job Seekers
India accounts for nearly 71% of all approved H-1B petitions, making this a major development for Indian IT workers and students aspiring to work in the US The higher cost could reduce the number of fresh H-1B filings by IT companies and shift more work offshore.
According to Emkay Research, "The direct cost burden is expected to remain contained as this is a one-time fee per filing. However, companies are likely to limit H-1B usage, increase local hiring, and build these costs into contracts where possible."
Expect More Local Hiring, Fewer Onsite Opportunities
Indian IT majors such as TCS, Infosys, and Wipro have already cut down their dependence on H-1B visas over the past few years. But the new rule is likely to accelerate this trend. More roles could stay offshore, meaning fewer opportunities for fresh graduates to move to the US for work.
"Onsite wage inflation is likely to inch up as companies prefer to hire locally, factoring in the cost differential," Emkay noted. This could make U.S.-based roles more competitive and challenging to secure for foreign applicants.
Impact on Consumers and IT Clients
For clients of IT services, the change could lead to longer project timelines and potentially higher costs. Companies may need to renegotiate contracts to absorb the fee or shift delivery models. For employees, this may translate to slower approval processes and tighter competition for coveted onsite roles.