Trump’s $100,000 H-1B Visa Fee: A Shockwave for Indian IT Firms & Global Skilled Talent

—

by

Himanshu
in ,

The U.S. tech industry has long depended on the H-1B visa program to fill critical skill gaps, particularly in software development, cloud computing, data science, and emerging technologies. In 2025, the dynamics shifted dramatically with a proposed $100,000 annual levy on each H-1B visa—a move that threatens to reshape the global IT talent market. Indian IT giant Tata Consultancy Services (TCS), which emerged as the second-largest recipient of H-1B visas with over 5,500 approvals, is at the center of this storm.

This article breaks down the new policy, its impact on Indian professionals, and how it reveals a double standard in global trade and talent policies.

H-1B Visa Approvals in 2025: Who Leads the Pack?

Company / CategoryH-1B Visa Approvals 2025
Amazon10,044
TCS (Tata Consultancy Services)5,500+
Infosys4,000+ (estimated)
Wipro3,000+ (estimated)
Other Indian IT Firms Combined~12,000

Data compiled from public filings & agency updates, September 2025.

The numbers underscore how Indian firms dominate H-1B allocations, with Indian nationals making up about 71% of all H-1B recipients. This makes the new levy especially consequential for India.

Breaking Down the $100,000 Annual Levy

The Trump administration has introduced a proposal to charge employers $100,000 per H-1B visa per year. That’s on top of existing fees and compliance costs. The stated goal is to “encourage” companies to hire more U.S. workers, but the move will have far-reaching effects:

  • Massive cost increase: For firms like TCS or Infosys employing thousands of H-1B holders, this means millions of dollars in added costs every year.
  • Long-term impact: H-1B visas are valid for up to 6 years, so a single employee could cost $600,000 in visa fees alone.
  • Compliance complexity: Firms must budget, justify, and report these new costs while staying competitive.

Why This Hits India Hardest

With India being the largest source of skilled tech workers for the U.S., the fee creates an uneven playing field:

MetricCurrent Status (2025)
Share of H-1B visas held by Indians71%
Share of H-1B visas held by Chinese~12%
Proposed fee impact per Indian IT firmVery High

Unlike some other countries, Indian firms have built their delivery models around sending specialized staff onsite to U.S. clients. The fee increase forces them to rethink this model, potentially shifting work offshore or cutting back on U.S. operations.

Implications for Indian IT Professionals

  1. Reduced Onsite Opportunities: Employers may limit H-1B filings, meaning fewer chances for professionals to work in the U.S.
  2. Higher Selectivity: Only critical, high-value roles will justify the fee, cutting opportunities for junior or mid-level staff.
  3. Salary & Package Impact: Firms may offset the fee by adjusting salaries or benefits, indirectly affecting employees.
  4. Visa Backlogs: Higher costs may reduce filings but not necessarily the backlog, leading to an even more competitive process.

The Double Standard in U.S. & EU Policies

Critics have pointed out a double standard:

  • The U.S. imposes heavy levies on H-1B visas but continues to rely on foreign talent for innovation.
  • EU nations, while sanctioning Russian energy imports, grant exemptions to certain member states like Hungary or Slovakia when it benefits them—just as the U.S. selectively applies tariffs and penalties on countries like India but avoids tough measures on China.
  • India, as an import-based nation, faces proposed tariffs or policy pressures while playing a key role in the global tech supply chain.

This inconsistency raises questions about fairness and long-term strategic thinking in immigration and trade policy.

Potential Outcomes for Businesses

OutcomeLikely Effect
Offshoring more work back to IndiaRise significantly
Hiring more U.S. workers at higher costModerate
Passing costs to U.S. clients (price hikes)Likely
Reduced competitiveness of Indian IT firmsHigh risk

Large firms like TCS, Infosys, and Wipro have the scale to absorb some costs. Smaller outsourcing firms may be forced to scale down or exit the U.S. market altogether.

Global Talent Market Shake-Up

This move may inadvertently benefit other countries:

  • Canada: Already attracting skilled workers rejected by the U.S. visa system.
  • Europe: May lure displaced talent if work visa regimes are friendlier.
  • Asia-Pacific hubs like Singapore or UAE: Could gain as companies re-route projects and people.

In other words, the policy meant to “protect American workers” could push innovation, jobs, and tax revenue offshore.

How Indian IT Firms Are Responding

  • Legal Review: Exploring whether such a steep fee can be legally implemented without Congressional approval.
  • Client Repricing: Adjusting pricing for U.S. clients to offset added costs.
  • Hybrid Delivery Models: Moving more work to India while keeping only top-tier staff onsite.
  • Lobbying: Engaging with U.S. policymakers to soften or modify the levy.

Conclusion

The $100,000 H-1B levy represents a seismic shift in U.S. immigration policy. While the stated intention is to prioritize American workers, the reality is a potential slowdown in innovation, increased project costs, and fewer opportunities for skilled professionals from India—the very talent pool that has helped power U.S. tech giants for decades.

For Indian IT firms like TCS, the challenge will be to stay competitive by rethinking their delivery models, managing costs, and finding new ways to maintain a strong presence in the U.S. market. For policymakers, it’s a cautionary tale about how protectionist measures can have unintended global consequences.

Disclaimer

This article is based on publicly available data as of September 2025. Policy details may evolve, and the actual implementation of proposed fees or levies is subject to change by U.S. authorities, legal challenges, or legislative amendments.