The Trump administration’s shocking $100,000 annual fee for H1B visa applications has sent shockwaves through Silicon Valley and India’s massive technology sector.
Who Will BENEFIT from New H1B Visa Rules
American Tech Workers
American computer programmers and mid-level technology professionals could see significant wage increases as companies compete harder for domestic talent instead of foreign workers. The policy specifically aims to protect American workers from being replaced by lower-paid foreign employees, potentially creating thousands of new opportunities.
US Universities and Local Talent
Commerce Secretary Howard Lutnick emphasized that companies will now train recent graduates from American universities rather than importing foreign talent for lower wages. This shift could dramatically boost employment opportunities for fresh American computer science and engineering graduates seeking their first technology jobs.
High-Skilled Foreign Workers
Ironically, the most talented foreign professionals might benefit as companies will only sponsor those worth the massive $100,000 investment in visa fees. Only exceptional candidates with specialized skills will justify the enormous cost, potentially leading to higher salaries for approved H1B workers.
Large Tech Giants
Companies like Microsoft, Amazon, and Google have sufficient resources to absorb the $100,000 fee for truly critical foreign talent they desperately need. These tech behemoths can shift operations to countries like Canada while smaller competitors struggle with the prohibitive visa costs.
Who Will LOSE from New H1B Visa Rules
Indian IT Professionals
Indians comprise 71% of all H1B visa recipients, making them the most affected group by these dramatic policy changes. Thousands of Indian tech workers face uncertainty about their American dreams as the visa pathway becomes prohibitively expensive for most companies.
The Indian government warned of “humanitarian consequences” due to family disruptions caused by these sudden immigration policy changes affecting established communities.
Small Businesses and Startups
Early-stage startups paying base salaries of $150,000-$200,000 cannot justify adding a $100,000 visa fee for each foreign employee they hire. Immigration attorney Sophie Alcorn noted that smaller companies will find the fee prohibitive compared to Big Tech’s ability to absorb costs.
Venture capitalist David Hornik warned that impediments to H1B visas will harm startups that rely heavily on international talent for innovation.
Indian IT Service Companies
Major Indian firms like TCS, Infosys, Wipro, and Tech Mahindra face potential margin pressures of 50-150 basis points from increased visa costs. These companies derive 55-80% of their revenue from the US market, making them extremely vulnerable to the policy changes.
Stock markets reacted negatively, with Indian IT shares falling 2-5% as investors worried about reduced profitability from higher operational costs.
US Innovation Ecosystem
Immigration attorneys warn that the policy could push jobs to countries like Canada where immigration laws are more business-friendly. Microsoft executives already indicated they might shift more operations to Vancouver rather than pay the hefty US visa fees.
Healthcare sectors and universities could struggle to attract international doctors, researchers, and professors due to the prohibitive visa costs.
Current Status and Exemptions
The $100,000 fee applies only to new H1B applications filed after September 21, 2025, not existing visa holders or renewals. Current H1B workers can travel freely without paying additional fees, providing relief to hundreds of thousands of professionals.
The Homeland Security Secretary can grant exemptions for individuals, companies, or industries deemed in the “national interest” without security threats. Healthcare and engineering sectors may receive special consideration given their critical importance to American infrastructure and public welfare.
Long-term Impact on US-India Relations
India’s External Affairs Ministry is studying the full implications while hoping for suitable resolution through diplomatic channels with US authorities. The policy affects India’s $283 billion IT export industry, which generates over half its revenue from American market operations.
Industry body NASSCOM expects only marginal impact as Indian companies have reduced H1B dependency through increased local hiring over recent years. Top Indian IT firms now employ over 50% local staff in the US, demonstrating their adaptation to changing immigration policies.
The new rules represent a fundamental shift in US immigration policy, prioritizing American workers while maintaining pathways for truly exceptional international talent.
Bottom Line: While American workers and elite foreign professionals may benefit, the policy creates significant challenges for Indian IT companies, startups, and the broader US innovation ecosystem that has long relied on global talent pools.