What the new H1B visa changes mean for Indian professionals

The H-1B visa programme, a key pathway for highly skilled foreign professionals in fields like technology, engineering, and research, has long relied on Indian talent, who make up the majority of beneficiaries. On September 19, 2025, the US administration announced a dramatic increase in the annual H-1B visa fee to $100,000, a move aimed at prioritising top-tier, high-salary roles. This change is expected to reshape opportunities for Indian professionals, particularly early-career workers, and alter how IT companies manage their US workforce.

What is the H-1B Visa?

The H-1B visa programme allows American employers to hire immigrant workers for occupations that require “a high level of skill” and at least a bachelor’s degree, according to the US Department of Labor. Established under the Immigration Act of 1990, the programme was designed to help employers who “cannot otherwise obtain needed business skills and abilities from the US workforce” by authorising the temporary employment of qualified foreign professionals.

The creation of the H-1B programme followed a prolonged debate between industry groups and workers’ unions. Business organisations, including the US Chamber of Commerce and the National Foreign Trade Council, successfully lobbied Congress to ease restrictions on hiring immigrant talent. Big Tech emerged as the primary beneficiary. During the 1990s tech boom, companies such as Microsoft, Oracle, and later Google and Amazon faced a shortage of specialised talent. The H-1B program enabled these firms to hire hundreds of thousands of highly skilled workers from countries like India and China to fill the gap.

The H-1B visa is valid for three years and can be renewed once, for a total of six years. Applicants must be sponsored by a US employer, and the programme is subject to an annual cap of 65,000 visas, with an additional 20,000 reserved for advanced degree holders from US universities. Due to high demand, visas are generally allocated through a lottery system.

Who gets H-1B Visas?

The H-1B programme primarily benefits highly skilled foreign professionals working in technology, engineering, healthcare, research and other specialised fields. Indian nationals are by far the largest group of beneficiaries, consistently receiving over 70 percent of approved H-1B petitions each year since 2015. Chinese nationals are the second-largest group, accounting for roughly 11 percent of approvals.

Between October 2022 and September 2023, 72 percent of the nearly 400,000 H-1B visas issued went to Indian nationals. Top Indian IT firms, including Infosys, TCS, HCL, and Wipro, alone received approvals for roughly 20,000 employees during this period.

The programme favors workers in specialised roles where qualified American professionals are in short supply. Computer-related occupations, particularly software development and IT services, make up the majority of approvals, while other fields such as engineering, healthcare, and scientific research account for smaller portions.

Employers currently pay multiple fees when sponsoring H-1B workers. These include a $215 registration fee and a basic filing fee ranging from $460 for small employers and nonprofits to $780 for larger companies. Additional costs cover training ($750–$1,500), fraud prevention ($500), and optional premium processing ($2,805). Large employers may also pay $4,000 under Public Law 114-113 (a rule that charges extra fees to big companies if most of their workers in the US are on temporary work visas), while asylum programme fees range from $0 for nonprofits to $600 for bigger companies

Recent changes to the H-1B programme

On September 19, 2025, the US administration announced major changes to the H-1B programme, including a dramatic increase in the annual visa fee to $100,000. The new fee primarily affects prospective or traveling H-1B workers outside the United States. Starting September 21, 2025, H-1B employees will be denied entry into the United States unless their employer has paid a $100,000 fee, according to a proclamation signed by President Trump on Friday. The requirement and entry restriction apply to any H-1B worker entering the US after 12:01 am EDT on September 21, including new visa applications, pending petitions and to-be-filed H-1B petitions.

In addition to the fee, the Department of Labor (DOL) has been instructed to raise prevailing wage levels, while the Department of Homeland Security (DHS) will prioritise higher-paid H-1B applicants. The proclamation also allows for national-interest waivers for individuals, companies or industries, although the exact criteria are still pending guidance. 

The share of IT workers on H-1B visas has grown sharply, from 32 percent in FY2003 to over 65 percent in recent years. Many US companies rely on H-1B-dependent outsourcing firms to reduce labor costs, with studies showing 36 percent savings on entry-level H-1B positions compared to employing American workers. Some firms have downsized in-house IT teams and outsourced roles to foreign professionals.

This report was republished from The News Minute as part of The News Minute-Newslaundry alliance. Read about our partnership here and become a subscriber here.