Fresh H-1B Shock On The Horizon For Indian Firms? Higher Fees, More Scrutiny On The Cards

The Donald Trump administration is preparing a sweeping overhaul of the H-1B visa programme, a move that could significantly reshape how foreign professionals, particularly Indians, work in the United States.

Beyond the proposed $100,000 mandatory fee, the administration plans to tighten eligibility norms and introduce new restrictions on how employers can use and qualify for the permit.

What is the new proposal?

According to the Department of Homeland Security, the proposed rule, titled “Reforming the H-1B Nonimmigrant Visa Classification Program,” seeks to revise exemptions to the annual cap, increase oversight of third-party job placements, and impose stricter scrutiny on employers found violating programme requirements.

These measures are designed to “improve the integrity of the H-1B programme and protect US workers’ wages and working conditions,” DHS said.

Which Sectors Could Be Affected?

While the finer details remain unclear, the reforms could potentially narrow the categories of employers, including universities, nonprofit research bodies, and healthcare institutions, that currently benefit from cap exemptions. The rule is expected to be published by December 2025, according to the regulatory notice.

H-1B: The Numbers

The H-1B visa enables American companies to employ skilled professionals. Each year, the US issues 65,000 H-1B visas, with an additional 20,000 reserved for those with advanced degrees from American universities.

For thousands of Indian students and professionals, the visa serves as the primary route to gain US work experience and, eventually, permanent residence.

Last month, the Trump administration announced the imposition of a $100,000 fee on all new H-1B visa applications. The move shocked Indian exporters, particularly the IT sector, which tanked 2.6% after the announcement.

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