Highlights:
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The $100,000 fee applies only to new H-1B petitions.
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Existing H-1B holders are unaffected.
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Companies may prefer retaining current visa holders over filing costly new applications.
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Salaries, benefits, and Green Card sponsorships may improve for current workers.
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Indian IT firms face a slight margin impact, with mid-tier players more exposed.
A $100,000 fee for H-1B visa applications, announced by former president Donald Trump, initially created uncertainty among Indian professionals in the US. Many feared that the fee would apply to all visa holders, including those already in the country, leading to canceled travel plans and concerns about re-entry.
By Sunday (21), the White House clarified that the new charge is a one-time fee for fresh petitions filed after the deadline. It does not apply to current H-1B holders, is not an annual charge, and will not be required for renewals or re-entry.
Impact on Indian IT Companies
Over the past several years, Indian IT firms have reduced reliance on H-1Bs by opening campuses in the US and hiring locally. Analysts estimate the fee will create a 10–20 basis point margin impact, with mid-tier firms more affected than larger players. Companies are expected to pass 30–70 percent of the additional costs to clients.
Firms such as Coforge, Hexaware, and Persistent Systems have already filed for relatively few new H-1B visas and stated they do not expect major operational disruptions.
Benefits for Existing H-1B Holders
The most immediate advantage goes to current H-1B visa holders in the US. With new applications becoming more expensive, companies are likely to focus on retaining their existing workforce. This may translate into higher salaries, more Green Card sponsorships, and better overall job security.
Banks, retailers, and technology companies are expected to compete more aggressively for this limited talent pool.
Long-Term Shifts
Industry experts caution that if the fee remains in effect, Indian IT companies could face challenges retaining employees, who may leave for higher-paying US firms. The policy could also accelerate a shift in the industry, forcing Indian IT companies to increase their hiring and training of American workers. Estimates suggest it may take up to three years for new local hires to reach the skill levels of current H-1B professionals.
The fee policy aligns with Trump’s broader immigration approach, which emphasizes prioritizing high-skilled, high-paying applicants. India’s technology sector and trade groups continue to monitor developments, highlighting that talent mobility is crucial for both innovation and US-India business relations.
