On September 19, 2025, the US government made its move. A new rule. A one-time fee of $100,000 for every fresh H-1B visa. It took effect at 12:01 a.m. ET on September 21, 2025. Only new filings pay. Renewals and current holders are safe. And here’s the kicker: Employers must pay the fee. They can’t shift it to the visa holder (by rule).
The goal is simple. Cut misuse. The US wants firms to hire locals first. No more cheap shortcuts with foreign talent. The message is clear: if you want H-1B workers, you’ll pay big.
Who’s affected most?
Indian IT pros take the hardest hit. They hold most H-1Bs. Big Indian tech firms feel the squeeze too. Their US projects run on these visas. And it’s brutal for small firms and startups. Thin margins. No cushion! Though the visa cap hasn't changed. The limit of 65,000 regular visas plus 20,000 for advanced degree holders stays. And the fee? It hits only new petitions. Old visas and renewals stay safe.
Key impacts on Indian IT professionals & companies
The fee is more than a number. It shakes balance sheets, strategies, and careers.
Higher cost burden
The cost curve just shot through the roof. What once cost a few thousand dollars is now a jaw-dropping $100,000 per petition. For a company filing a handful of visas, it’s painful. For a company filing thousands, it’s brutal. Think about the numbers. A firm like Infosys, TCS, or Wipro could see tens or even hundreds of millions added to their annual bill. That’s money straight out of operating margins. Money that could have gone into R&D, hiring, or expansion. Now it will be spent on visas.
Strategy shift
Indian IT giants know they can’t keep playing the same game. So the strategy shifts. First, offshoring. Instead of flying engineers to the US, keep them in India. Let them handle projects remotely from delivery centers in Bengaluru, Pune, or Hyderabad. Second, nearshoring. Build teams in Canada, Mexico, or Latin America. These locations are close to the US in time zones. They cost less. And best of all - no $100,000 fee hanging over every head. Third, local hiring in the US. Firms will bring in more American citizens and green-card holders. This is not just a compliance move. It’s survival. The fewer H-1Bs filed, the lower the costs.
Effect on profit margins
Margins are the lifeblood of Indian IT. And they are under direct fire. Higher visa costs mean smaller profits. Passing the bill to clients isn’t easy. Some clients will resist. Some will walk away. And when demand wobbles, share prices follow. We already saw it. Infosys, TCS, HCL, Wipro - all took hits on the stock market. Investors are jittery. They fear the squeeze on profits. They fear slowdowns in new deals. Every basis point matters in IT margins. And this fee bites hard.
Uncertainty and planning disruption
The worst part? The fog of uncertainty. Employees don’t know what happens with renewals or transfers. Families are worried about travel. Should they step out of the US? Will re-entry cost $100,000? Nobody has clear answers. Companies are caught too. Project managers face tough calls. Do they delay client projects? Do they renegotiate contracts? Or do they absorb the pain and move on?
Nasscom has already warned: disruptions are coming. Delays. Higher costs. Tense client calls. This is not just numbers on a sheet. It’s people, projects, and profits - thrown into chaos overnight.
Broader effects on US economy & tech sector
The fee doesn’t just hit India. It rattles America too. Cut the flow of skilled workers, and you cut innovation. Less talent means slower growth. Big tech firms may survive - they have deep pockets. But startups? Small businesses? They’ll bleed. Hiring foreign talent just became a luxury. And when fresh ideas dry up, the whole tech sector feels the chill.
Impact on remittances & Indian tech ecosystem
Fewer Indians flying out means fewer dollars flying back. Remittances take a hit. Families in India feel it. But there’s another side. More work stays in India. More demand for engineers at home. Global clients may shift projects to India instead of the US. That creates jobs. It feeds the startup scene. It builds the local ecosystem. So while one door closes, another cracks open.
A blessing in disguise?
Some call the $100,000 fee a curse. Others call it a blessing.
The Director of IIT Madras put it bluntly: “Blessing in disguise…” If fewer Indians chase H-1Bs, fewer leave. Expert Ajay Bagga agrees. “It could curb brain drain, pushing India to utilize skilled workers better.” And then there’s Amitabh Kant, former CEO of NITI Aayog. His words: “America’s loss will be India’s gain.” He believes US innovation may weaken, while India gets stronger.
Mohandas Pai sees the math. “It has got limited application … new applications will come down. Nobody’s going to pay $100,000, that is very true.” Kunal Bahl is even sharper. “Because of the new H-1B rules, a tremendous number of talented individuals are going to be headed back to India.”
The message? The drain may slow. Some talent may return. Some may stay. But ambition doesn’t vanish. If India doesn’t offer enough, people will look elsewhere — Canada, Europe, Australia. The US may close one door. But where India’s brightest walk next — that’s still wide open.
What Indian professionals should do
Check your status: Start with the basics. Where do you stand? If your H-1B is already stamped, you can breathe - at least for now. Renewals are safe. Transfers within the US are safe. But new petitions? That’s where the storm hits. If you’re in the middle of a fresh filing, the rules just changed on you overnight. Don’t assume. Verify. One mistake could cost your employer a hundred grand.
Plan travel carefully: Travel isn’t simple anymore. Picture this: you fly home to India for Diwali. When you try to re-enter the US, your employer may need to cough up $100,000 just to get you back in. That’s not pocket change. For some firms, it may not even be possible. Trips abroad now carry weight. So before booking tickets, talk to your HR. Make sure your status and re-entry plan are clear.
Talk to employers: This is not the time to stay quiet. Call your manager. Call HR. Ask the hard question: Who pays?
By law, the employer must pay the fee. But how they handle it inside the company is another story. Some will absorb the hit. Some will push projects offshore. Others may freeze hiring altogether. Knowing their plan helps you make yours.
Look for alternatives: Don’t put all your hopes in one visa. Think wider. Consider other visa categories that might fit your skill set. Explore nearshore options like Canada, Mexico, or even Latin America. These hubs are growing fast. And they don’t carry the $100,000 price tag. Remote work is another lifeline. Many US clients are open to offshore delivery now. It may not be the American dream, but it keeps your career alive.
Stay updated: This story isn’t over. Courts could block or soften the fee. New clarifications will arrive. Don’t fall for rumors on WhatsApp groups. Follow official updates, industry bodies, and trusted news. What looks permanent today may vanish tomorrow. Stay alert. Stay informed. Stay ready!
Risks & challenges
This rule will not go untested. Lawyers are already sharpening their knives. Big tech firms, industry bodies, even civil rights groups may line up to fight it. Why? Because $100,000 looks less like a policy and more like a wall.
Courts could step in. A judge could freeze it. A higher court could strike it down. Or the fee could stand, dragging on through years of appeals. For professionals and companies, this means one thing - uncertainty. The law could flip tomorrow. Or stay locked for years.
Unclear rules in practice
The fine print is missing. What happens if you’re outside the US with a valid H-1B and want to return? What about transfers between employers? Do renewals abroad trigger the fee? Nobody has clear answers.
Agencies are scrambling to draft guidance. Until then, companies are guessing. And professionals are stuck in limbo. Careers are on hold. Families are stressed. One wrong interpretation could cost a firm $100,000 - or cost a worker their shot at re-entry.
Potential job losses or fewer opportunities
The fee will hurt hiring. Especially at the bottom. Entry-level roles will be first on the chopping block. Why would a firm spend $100,000 on a fresh graduate when they can hire a local for less?
Startups and small firms will also feel the pinch. They don’t have cash to burn on visas. Some will stop hiring foreign talent altogether. Others will shut doors on overseas applicants. The dream of working in Silicon Valley may fade for thousands of skilled Indian graduates. And for those already inside the US, options may shrink fast. Fewer offers. Fewer transfers. More competition for the little that remains.
Staying ahead of the change
The $100,000 H-1B fee hike changes the game. Costs rise & margins shrink. Plans break. Indian IT firms and professionals feel the heat. Some will stumble. Others will adapt. But this story isn’t just about struggle. It’s about strategy. Shift work offshore. Explore nearshore hubs. Hire locals. And for professionals - look at alternatives.
The rules are messy. The future is unclear. That’s where the right guidance matters. At Trademarkia, we help you cut through the noise. From visa rules to compliance, we make the path simpler. So while the law keeps changing, your plans don’t have to. Talk to an expert today. Stay ahead of the change!
