Highlights:
- Trump announces a $100,000 fee for new H-1B visas, effective March 2026.
- Economists warn it could damage innovation and force jobs offshore.
- Tech giants, universities, and hospitals face major disruption.
- India likely to benefit from a “reverse brain drain” of top talent.
- Legal challenges could delay or block the policy in court.
President Donald Trump’s plan to impose a $100,000 fee on new H-1B visas has sent shockwaves through corporate America, immigrant communities, and global talent pools — especially Indian professionals.
Rolled out with almost no warning, the measure is aimed at reducing what Trump calls the “most abused visa” program and encouraging companies to hire more American workers.
But economists, immigration experts, and industry leaders say the policy could backfire. They warn it might slow innovation, force companies to move jobs abroad, and drive skilled talent back to countries like India — fueling their growing tech sectors.
The H-1B visa program, created in 1990, is the main pathway for highly skilled immigrants to work in the US, particularly in STEM fields. It supplies engineers, doctors, professors, and researchers to American companies and universities.
Experts believe the new six-figure cost could:
- Disrupt tech and healthcare industries that already face labor shortages.
- Push US companies to offshore projects to India, Canada, or Mexico.
- Make US universities less attractive to foreign students who often stay and work through H-1B visas.
Rutgers economist Jennifer Hunt told the Wall Street Journal: “This misguided measure could shut down the H-1B program entirely. And if that happens, it’ll have a very detrimental effect on the economy as a whole.”
Supporters of the program argue H-1B workers boost productivity, innovation, and wages for Americans. A 2015 study found that foreign-born professionals raised salaries for US-born workers. Another study showed restricting H-1Bs leads companies to simply move jobs overseas.
Tech giants like Amazon, Google, and Microsoft rely heavily on H-1B holders, and startups may not survive a $100,000 visa cost. Nonprofits and hospitals also depend on foreign doctors and researchers. Immigration lawyer Karin Wolman warned: “The impact on health care alone will be devastating.”
India stands to gain the most, as its workers make up nearly 70 per cent of all H-1B visa holders. Analysts predict a surge of skilled professionals returning to India, which could strengthen its booming tech and AI sectors.
Legal challenges are expected. Lawyers argue the fee is excessive, lacks proper public comment, and could be struck down by courts. Still, if it stands, companies may accelerate plans to move operations abroad, and Indian talent could return home in large numbers.
As former Zensar CEO Ganesh Natarajan put it: “The ‘American Dream’ for aspiring workers will be tough. Firms will simply do more work out of India, Mexico, and the Philippines.”
