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In a significant policy shift, the United States has announced a substantial increase in fees for new H-1B visa petitions. Effective September 21, 2025, employers filing new H-1B applications will be required to pay a $100,000 fee per petition, a significant increase from the previous cost structure, which ranged between $1,700 and $4,500, depending on employer size and other factors.
The proclamation, signed by President Donald Trump on September 19, 2025, under the title “Restriction on Entry of Certain Nonimmigrant Workers,” specifies that the fee will apply only to new H-1B visa petitions submitted after the effective date. The changes shall not apply to existing visa holders of current H-1B visas or those applying for a re-issue of the H-1 B visas.
What is the H1B Visa in the USA?
The H1B visa in the USA is a non-immigrant visa that allows American employers to sponsor skilled foreign workers to work in speciality occupations. Domains such as medical science, IT, mathematics, and engineering are usually eligible to apply for an H1B visa.
The duration of an H1B visa is usually 3 years, which can be further extended for up to 6 years. Read further to understand why the US has raised the H1B visa fee.
Why has the U.S. Government Raised H-1B Visa Costs?
The H-1B visa program has long served as a pathway for skilled foreign professionals, particularly in the fields of technology, engineering, and healthcare. By significantly increasing the cost of sponsoring new applicants, the administration aims to reduce reliance on foreign labour and encourage employers to prioritise hiring American workers.
India’s Heavy Reliance on H-1B Visas
The recent updates on the new H-1 B visa fees have raised significant concerns in India, whose citizens account for more than 70% of all H-1B visas issued annually. Indian IT and consulting firms, which sponsor thousands of skilled professionals each year, are expected to bear the brunt of the hike.
The additional cost could lead to fewer job opportunities for Indian tech workers and may force companies to rethink their U.S. hiring strategies. Smaller Indian firms and startups, in particular, may struggle to absorb the financial burden, while larger corporations will face higher operational costs.
This development marks one of the most sweeping changes to the H-1B program in recent years, likely reshaping both employer strategies and the future of skilled immigration in the U.S.
