The U.S. government has introduced a $100,000 fee for new H-1B visa applications, effective from September 21, 2025. The White House clarified on September 20, 2025, that the fee applies only to new applicants and is a one-time payment, not annual. Current H-1B holders, 2025 lottery winners, and visa renewals are exempt. There is no impact on travel or entry for existing visa holders.
What Indian Students Need to Know About the H-1B Visa
The H-1B visa allows U.S. companies to employ skilled foreign workers in fields such as engineering, IT, and healthcare for up to three years, extendable to six. Annually, 85,000 visas are granted—65,000 for general applicants and 20,000 for individuals with U.S. advanced degrees. Historically, about 71 per cent of H-1B visas were issued to Indian nationals, predominantly in the tech sector.
Impact of the $100,000 Fee Hike
The fee surge from the earlier $4,000–$10,000 to $100,000 may affect small and mid-sized companies, reducing sponsorship opportunities for Indian students. Large companies may continue sponsoring but will prioritize highly skilled applicants. Consequences include:
- Fewer Job Opportunities: Small IT firms may reduce H-1B sponsorship, affecting placement for fresh graduates.
- Financial Strain: Students investing lakhs in U.S. tuition may face challenges if unable to secure H-1B sponsorship.
- Potential Migration: Indian students may consider alternative destinations such as Canada or the UK, which offer graduate work permits for two to three years.
Reasons Behind the Fee Increase
The U.S. government stated the fee hike aims to:
- Ensure only highly skilled workers are selected
- Encourage higher salaries for H-1B workers
- Reduce the number of applications and streamline the lottery system
Indian officials have raised concerns, highlighting potential impacts on U.S.-India collaboration and the Indian IT sector, which may experience financial setbacks.
Alternatives and Recommendations
Students can explore other visa pathways, including:
- O-1 Visa for exceptional achievements
- L-1 Visa for intra-company transfers
- Graduate work permits in Canada (three years) or the UK (two to three years)
Networking, applying to top-tier firms, and pursuing advanced degrees such as master’s or PhD may improve sponsorship chances. For Indian students planning to work in the U.S., awareness of deadlines, fees, and alternate options is crucial. The situation remains dynamic, and following updates from U.S. immigration authorities and legal channels is advised.
