The H1B visa fee hike turns the American dream into a nightmare for Indian tech workers, forcing thousands to abandon US plans amid soaring costs.
US President Donald Trump signed a proclamation on September 19, 2025, imposing a $100,000 one-time fee on new H1B visa petitions effective September 21, 2025, to curb program abuses and protect American workers. This H1B visa fee hike targets specialty occupations, mainly in tech, where Indians hold over 70% of visas, sparking fears of an American dream crash for Indian tech workers.
Why the H1B Visa Fee Hike Hits South Asia Hard
The H1B visa fee hike reverberates across South Asia, particularly India, the largest source of H1B recipients. Indian tech firms rely on these visas for onsite projects, contributing billions to services exports and remittances. Disruptions could slash GDP growth by 0.5% in the sector, per estimates, while forcing skilled workers home amid limited local opportunities. This American dream crash for Indian tech workers threatens family stability and innovation flows between the US and region.
Official Announcement Details the H1B Visa Fee Hike
The White House proclamation, titled “Restriction on Entry of Certain Nonimmigrant Workers,” restricts H1B entries unless employers pay $100,000 per new petition. This fee applies to petitions filed after 12:01 a.m. EDT on September 21, 2025, for aliens outside the US seeking initial entry. It exempts renewals, prior approvals, and current holders’ travel rights.
US Citizenship and Immigration Services (USCIS) clarified in its FAQ that the payment accompanies new petitions, including the FY 2026 cap lottery. Employers must retain proof of payment, verified by the Department of State during visa processing. The proclamation expires in 12 months unless extended.
Rationale centres on protecting US labour. The document cites data showing foreign STEM workers rose from 1.2 million in 2000 to 2.5 million in 2019, while US computer occupation unemployment hit 3.02% in 2025, up from 1.98% in 2019. It claims H1B abuses suppress wages by 2.6% to 5.1% and boost foreign employment by 6.1% to 10.8%. IT firms, accused of replacing Americans, approved over 5,000 H1Bs in FY 2025 while laying off 15,000 locals.
“American IT workers have reported they were forced to train the foreign workers who were taking their jobs,” the proclamation states, highlighting nondisclosure agreements in severance deals.
American Dream Crash for Indian Tech Workers
The H1B visa fee hike elevates employer costs from $2,000 to $100,000, plus a $60,000 base salary, totalling $160,000 for entry-level roles. This makes sponsorship unviable for startups and mid-sized firms, hitting Indian tech workers hardest.
In 2024, 70% of H1B visas went to Indians, down from higher shares pre-2020. Indian migration abroad surged 270%, from 94,145 in 2020 to 348,629 in 2024, driven by STEM demand. Yet, top recipients shifted: only Tata Consultancy Services ranked in the top 10 for early 2025, versus seven Indian-linked firms in 2014.
Meghna Gupta, an Indian software engineer, shared her despair: “It has left me heartbroken. All my life, I planned for this; everything circled around this goal for me to move to the US. The so-called ‘American Dream’ looks like a cruel joke now.” Her plans crumbled post-announcement.
Ajay Srivastava, former Indian trade officer, warned: “The cost of hiring a foreign worker now exceeds local hiring by a wide margin. American firms will scout more domestic talent, reserve H1Bs for only the hardest-to-fill specialist roles, and push routine work offshore to India.”
Ansh, a senior Meta engineer on H1B, noted long-term fallout: “Once talent goes away, innovation won’t happen. It is going to have long-term consequences for visa holders and their families.”
Data Reveals Scale of Disruption
Government data underscores the American dream crash for Indian tech workers. A 2021 survey showed 41% of international graduates from 2012-2020 stayed in the US, rising to 75% for PhDs. The H1B visa fee hike risks reversing this, with 70,000 Indians potentially affected annually.
Unemployment among young US computer science graduates stands at 6.1%, per proclamation stats, justifying the move domestically but igniting backlash abroad.
Indian Government and Industry Respond to H1B Visa Fee Hike
India’s Ministry of External Affairs (MEA) flagged humanitarian risks. On September 26, 2025, it stated the fee “causes disruptions” to services exports and remittances, vital for India’s economy. MEA engaged the Trump administration and stakeholders, stressing skilled mobility’s role.
Nasscom, India’s IT trade body, decried the abrupt rollout: it could “potentially disrupt families” and onshore projects, with “ripple effects” on US innovation and global jobs. Firms face “additional cost adjustments.”
Sudhanshu Kaushik of the North American Association of Indian Students added: “The Trump administration’s motive is to create panic and distress among H1B visa holders… To remind them that they don’t belong.”
Principal Secretary PK Mishra urged Indians abroad to return, citing domestic opportunities.
Broader Economic Ripples
The H1B visa fee hike may offshore routine tasks to India, raising data security and coordination issues. Reuters reported potential hits to $50 billion in annual IT exports. Women and students face amplified impacts: many juggle family visas, while US-educated Indians invested heavily in degrees now yielding fewer returns.
Background: Evolution of H1B Policies
The H1B program, capped at 65,000 visas plus 20,000 for advanced degrees, faced scrutiny since Trump’s first term. FY 2025 saw USCIS reach the cap by December 2024. Earlier rules modernised requirements effective January 17, 2025, but the fee marks an escalation.
Indian firms like Infosys and Wipro dominated approvals historically, fuelling growth. The shift signals tighter borders amid 2025 labour tensions.
What’s Next for the H1B Visa Fee Hike
Legal challenges loom from tech lobbies like the American Immigration Council, arguing the fee exceeds authority. India may negotiate bilaterals. For workers, alternatives like Canada beckon, but the H1B visa fee hike lingers as a barrier to the American dream crash for Indian tech workers, reshaping global talent flows.
The H1B visa fee hike, while safeguarding US jobs, underscores tensions in international migration, with South Asia bracing for sustained fallout.
Published in SouthAsianDesk, September 29th, 2025
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