The Trump administration’s sudden announcement of a $100,000 fee on H-1B visas has sparked widespread concern and confusion among workers, companies, and policymakers.
About H-1B Visa
The H-1B visa was established in 1990 as part of a broader set of immigration reforms implemented during President George H.W. Bush’s administration
The H-1B visa allows foreign workers to be employed by a U.S. company for a temporary period.
Unlike the L and E visas, this visa does not impose special conditions or restrictions on the U.S. employer.
The applicant faces fewer eligibility requirements and does not need to hold a managerial position within the U.S. company.
The Importance of the H-1B Visa Program
A Critical Pathway for Skilled Workers: The H-1B visa program has been instrumental in allowing highly skilled professionals, especially from India, to contribute to critical sectors such as technology, healthcare, and engineering in the US.
India’s Transformation through the H-1B Pipeline: For India, the H-1B has been more than a visa—it has been a gateway to socioeconomic mobility, driving growth in the IT sector and expanding the country’s middle class.
Origins of the Majority of H-1B Visa Holders
Indians received the majority of approved H-1B visas, making up 71 percent of the total in 2024.
Chinese nationals were the second largest group, accounting for 11.7 percent of approved visas.
Filipinos, Canadians, and South Koreans followed, representing smaller shares of approximately 1.3 percent, 1.1 percent, and 1 percent respectively.
Consequences for the US Economy and Innovation
Threat to the Tech Industry: US companies, especially startups and mid-sized firms, face a dilemma: bear the additional costs or offshore critical operations, potentially weakening America’s technological leadership.
Strain on Healthcare and STEM Fields: Indian-origin doctors, a significant segment of the US healthcare workforce, could find it harder to obtain visas, worsening existing doctor shortages.
Similarly, fewer international STEM students might opt for US education, leading to a talent deficit.