H-1B Visa Fee Hike Sparks Concerns for Startups and Tech Giants Alike

The United States technology industry is grappling with a major policy shift after President Donald Trump announced a new annual H-1B visa fee of $100,000. The move, which takes effect on September 21, 2025, dramatically raises the cost of hiring foreign talent and has triggered sharp reactions from industry experts, immigrant advocacy groups, and former government advisors.

A Sharp Departure From Existing Costs

The new $100,000 yearly charge represents a massive jump from the current H-1B visa fees, which typically amount to only a few thousand dollars. The fee applies to all H-1B petitions regardless of salary or skill level, effectively limiting the visa to roles that can justify such a steep cost. Indian IT service giants like Infosys, TCS, and Wipro—which have long relied on bringing junior and mid-level engineers to the U.S. for client projects and skill development—are expected to feel the greatest impact.

Ajay Bhutoria: A Bold Step, but a Double-Edged Sword

Ajay Bhutoria, a former advisor to President Joe Biden, described the decision as a “bold step” aimed at strengthening opportunities for American workers. “This $100,000 H-1B fee could reduce dependence on low-cost foreign labor and uplift senior U.S. IT employees and new college graduates by ensuring fair wages and opportunities,” Bhutoria said. However, he cautioned that the policy could hurt startups by making it more difficult for them to hire specialized talent. Bhutoria called for a balanced approach with targeted exemptions to preserve America’s competitive edge in technology and innovation.

FIIDS Labels the Move ‘Unfortunate’

The Foundation of India and Indian Diaspora Studies (FIIDS) expressed serious concern, calling the policy “unfortunate” and warning that it could have a “very negative” impact on the U.S. technology sector. FIIDS representatives noted that startups and smaller tech companies could struggle to innovate and compete if they are forced to pay such high fees to access global talent.

Fear and Confusion Among Immigrant Communities

The American Hindu Foundation (AHF) reported widespread confusion and anxiety within immigrant communities, particularly among Indian professionals who make up a large portion of H-1B visa holders. In a statement, AHF highlighted that thousands of skilled workers are now uncertain about the legal validity of the order and its effect on visa stamping for those traveling to India. The group stressed that these highly skilled employees have followed every law to live and work in the U.S. and deserve dignity, respect, and fair treatment.

Potential Ripple Effects

Analysts predict that the hefty fee will reshape hiring strategies across the technology industry. While large corporations with deep pockets may absorb the cost for critical roles, startups and mid-sized firms may be priced out, forcing them to either scale back their operations or prioritize domestic hires. This could slow innovation, reduce diversity in the tech workforce, and disrupt projects dependent on international expertise.

The H-1B visa program has historically been a vital channel for bringing skilled engineers, scientists, and IT professionals to the United States. With the new annual fee set to take effect, companies and immigrant workers alike are bracing for higher costs, tighter competition, and a shifting landscape for global talent.