Trump’s $100,000 H-1B Fee Explained: What is It & Why it Matters to India

US President Donald Trump on Saturday signed a presidential proclamation that will prevent many H-1B workers outside the United States from obtaining visas or entering the country unless their US employer first pays a $100,000 fee per beneficiary.

The restriction takes effect at 12:01 a.m. Eastern on September 21 and is framed as a 12-month measure unless extended. It also directs the Labor Department to revisit prevailing-wage rules and instructs agencies to prioritize higher-paid foreign entrants.

This means that, for H-1B beneficiaries who are physically outside the US, consular visa issuances and DHS admission decisions will be conditioned on proof that the sponsoring employer has paid the new charge.

Agencies have been told to deny petitions or entries that are not accompanied by the payment, with limited “national-interest” exemptions that the Secretary of Homeland Security may grant. The White House fact sheet makes clear this is intended to curb what the administration describes as abuses of the H-1B channel and to protect US jobs.

What are H-1B and H4 Visas?

The H-1B is a US nonimmigrant work visa for “specialty occupations” that require at least a bachelor’s degree or equivalent in a specific field (think software engineers, architects, scientists, etc.).

An employer in the US must sponsor the worker by filing a petition; the visa is granted for an initial period (usually up to three years) and can be extended (commonly up to six years, with further extensions possible in some green-card queues).

H-1B holders are tied to their sponsoring employer for that petition, but the status allows “dual intent” (they can pursue permanent residency). The program is subject to an annual numerical cap for new entrants (with some exemptions for universities and certain employers) and involves wage and labor-condition requirements meant to protect US workers.

Similarly, the H-4 is a dependent visa for the immediate family (spouses and unmarried children under 21) of H-1B visa holders. It allows dependents to live in the US with the principal H-1B holder. Not all H-4 holders are automatically work-authorized; eligibility for the EAD depends on the H-1B holder’s immigration progress or specific regulatory provisions.

After Trump’s executive order, major employers that rely on H-1B hiring advised their staff accordingly. Several technology firms like Amazon reportedly urged employees on H-1B and dependent H-4 visas not to leave the US, and asked those already abroad to return before the rules take effect.

Reasoning & Initial Impact

The proclamation asserts the existing H-1B system has been used to displace American workers and depress wages, and frames the fee and wage-setting directives as corrective. It also sits alongside other actions announced at the same Oval Office event, including investment-based “gold card” residency proposals, that together amount to a major reshaping of legal immigration priorities.

Critics argue the $100,000 figure is effectively a tax on talent that will make H-1B hiring prohibitively expensive for startups and many mid-sized companies, and will push firms to hire remotely or shift work overseas.

Industry groups warned the measure could disrupt projects and hiring pipelines; business-critical roles such as software engineers and specialists, many of them hired from India, are especially exposed. News reports and company notices indicate employers are scrambling to understand whether they can accelerate visa issuances before the deadline or shift staffing strategies.

Implementation Uncertainty

Legal and implementation uncertainty around the order is high. The proclamation relies on presidential authority to restrict entry, but attorneys say novel questions are raised when that authority is used to impose a large monetary precondition on visa issuance. The attorney might have to intervene, as the move is most likely to be challenged in federal court.

Practical questions about the mechanics of the order remain. There is no proper clarity on how the payment will be collected and recorded, whether it replaces or supplements existing statutory fees, how renewals and transfers will be handled, and the precise scope of exemptions.

Immigration-law firms and trade associations are already parsing the proclamation and advising clients to watch for immediate agency guidance and for likely litigation.

Why this matters to India?

Indian nationals make up a very large share of H-1B beneficiaries and Indian IT and services firms are among the biggest users of the program.

Any sustained barrier to entry will not only affect individual workers but could disrupt supply chains for US tech companies that depend on those vendors.

Commentators in India and the US have framed the move as a potential economic shock for talent flows and for bilateral commercial ties, and Indian firms will likely accelerate contingency planning for staff, contracts and visa strategy.