H-1B Visa Fee Update: What It Means for Indians?

New Delhi, September 22, 2025 – The United States has introduced one of the most dramatic changes to its skilled work visa system in recent years. Under a new presidential proclamation titled “Restriction on Entry of Certain Nonimmigrant Workers”, employers must now pay a $100,000 one-time fee for every new H-1B petition filed on or after September 21, 2025.

The rule covers the 2026 H-1B lottery and any new filings after the effective date. While the White House says the change will curb abuse and protect American workers, Indians—who account for over 70% of H-1B holders—are expected to feel the sharpest impact.

What exactly changed?

Important: The Proclamation states this is a one-time fee on submission of a new H-1B petition. It is not an annual fee.

Check Out: What is H1 Visa? How is it relevant for International Students?

Who among Indians is most affected?

Indians dominate the H-1B program, especially in STEM fields such as software engineering, data science, and consulting. The new cost barrier will hit three groups hardest:

• OPT graduates & early-career talent – Many Indian students finishing their U.S. Master’s or PhDs depend on the H-1B to stay back and work. A $100,000 price tag may make employers reluctant to sponsor entry-level roles.
• IT services & consulting employees – Outsourcing firms that file in bulk for junior engineers may scale down dramatically, reducing openings for Indian tech workers.
• India-based professionals seeking U.S. jobs – Those needing new petitions (cap-subject or otherwise) will see sponsorship opportunities shrink.

Meanwhile, existing H-1B holders and renewals remain unaffected. Your current visa is valid, and you can still travel in and out of the U.S. without paying the new fee.

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How will it change employer behavior?

The steep $100,000 barrier will likely reshape how U.S. firms approach Indian talent:

• Fewer filings overall – Many companies may not even reach the annual cap of 85,000 visas.
• Preference for senior roles – Employers will save sponsorships for critical, high-paying, or niche positions.
• Rise of alternatives – Expect more interest in O-1 (extraordinary ability) and EB-1A (priority worker) visas for top Indian professionals, as these bypass the lottery.
• Cautious transfers – Mid-career workers changing employers could struggle if a new petition is needed.

What it means for Indian students in USA? (OPT → H-1B path)

For Indian students on OPT (Optional Practical Training), this shift creates new uncertainty:

• H-1B filings become selective – Universities and employers may file fewer petitions, especially for entry-level roles.
• Stronger resumes matter – Those with higher salaries, patents, niche research, or leadership experience stand a better chance.
• Plan B is essential – Students should prepare backup options early, such as cap-exempt roles at universities or non-profits, or alternatives in Canada, the UK, or Ireland.

What stays the same?

According to the official guidance:

• No retroactivity – Applications filed before 12:01 a.m. EDT, Sept 21, 2025, are unaffected.
• Renewals/extensions – The new fee does not apply.
• Travel – Current H-1B holders can still travel internationally without penalty.

What’s coming next?

The proclamation also hints at further reforms:

• Prevailing wage increases – The U.S. Department of Labor may soon raise salary levels required for H-1B roles.
• Lottery reform – The Department of Homeland Security is exploring prioritizing higher-paid applicants instead of random draws.
• Additional changes – More restrictions could follow in the coming months.

Action plan for Indian professionals & students

If you’re a current H-1B holder

• Status/travel: No new fee; travel permitted as usual.
• Extensions/transfers: Confirm with counsel if your move requires a new petition (which could trigger the fee).

If you’re on OPT/CPT or graduating in 2026

• Strengthen your profile: Target higher salaries, niche skills, leadership, publications, open-source impact.
• Target cap-exempt employers: Universities/non-profits aren’t bound by the cap and often follow different rules.
• Evaluate alternatives: O-1/EB-1A, or non-U.S. destinations (Canada, UK, Ireland, UAE) if sponsorship stalls.

If you’re India-based seeking U.S. roles

• Expect fewer filings: Employers may limit new H-1Bs to mission-critical roles.
• Negotiate sponsorship terms: Clarify who bears costs; explore L-1 (intra-company) if eligible.

H1B Visa Fee Hike FAQs

Ques. Is the $100,000 fee annual?

Ques. Do renewals/extensions pay this fee?

Ques. Does it affect current H-1B holders’ travel?

Ques. Will the 2026 lottery be covered?