Nasscom flags ripple effects of $100,000 H-1B visa fee, says move will impact business continuity

The National Association of Software and Service Companies (Nasscom) on Saturday (September 20) issued a statement on the White House proclamation introducing a $100,000 annual fee on H-1B visa applications, effective September 21, 2025.

The industry body said the move could have “ripple effects on America’s innovation ecosystem and the wider job economy.”

Nasscom noted that while companies will adapt and manage transitions, the additional cost burden would disrupt business continuity for Indian and global firms relying on H-1B professionals.

The body also flagged the tight timeline for implementation, with the order applying to anyone entering the US after 12:01 a.m. on September 21, calling it a source of “considerable uncertainty” for businesses, professionals, and students.

“Policy changes of this scale are best introduced with adequate transition periods, allowing organizations and individuals to plan effectively and minimize disruption,” Nasscom said.

The association emphasised that Indian IT companies have already reduced dependence on H-1B visas in recent years through local hiring, nearshoring, and partnerships with US academia and startups.

Nasscom stressed that its member companies follow compliance rules, pay prevailing wages, and contribute to the U.S. economy.

“The H-1B workers for these companies by no means are a threat to national security in the US,” the statement added.

Nasscom reiterated that high-skill talent remains critical to US innovation leadership, especially amid advances in AI and other frontier technologies. It also said it will monitor developments closely, engage with industry stakeholders, and seek further clarity on the discretionary waiver process to be administered by the US Department of Homeland Security.

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