The proposed H-1B visa changes from the US Department of Homeland Security and Trump administration have created concerns among Indian professionals, students, and IT companies. Under this proposal, American employers may need to pay $103,265 for every new H-1B application within the annual visa limit.
The proposal follows an earlier decision that a US court rejected in June. The Federal Register published this notice on August 24 and invited public comments for 30 days.
Furthermore, authorities may finalise the proposal by the end of the year. The government is also considering a $100,000 fee on Optional Practical Training (OPT).
New H-1B And OPT Fee Structure Creates Financial Pressure
The US government plans changes beyond new H-1B applications. Existing employee visa extensions may also face additional costs.
For new H-1B applications, employers may pay a proposed fee of $103,265 per application.
Additionally, DHS will charge larger companies extra fees from September 9. Companies with over 50% H-1B or L-1 workers may pay $4,000 for H-1B extensions and $4,500 for L-1 extensions.
These charges come under the 9/11 Response and Biometric Entry-Exit Fee. Meanwhile, the government separately considers a $100,000 OPT fee.
Indian IT Companies Could Face Higher Operating Costs
Indian IT companies including TCS, Infosys, Wipro, and HCL rely on sending skilled software engineers to US client locations.
American technology companies such as Cognizant also follow similar models. However, higher visa costs may increase operational expenses.
Moreover, companies may prefer hiring local US citizens or green card holders. This could reduce dependence on engineers sent from India.
Consequently, companies may expand remote work models. They may shift more projects to India and other lower-cost locations.
Indian Students May Face Employment Challenges After Graduation
India remains the largest source of international students in America. During fiscal year 2025, Indians represented nearly 70% of H-1B workers.
Many Indian students work through OPT after completing expensive US degrees. They later attempt to move into H-1B visa programmes.
However, companies may avoid sponsoring fresh graduates if they must pay $103,265. Small and medium businesses could especially reduce sponsorship opportunities.
As a result, students may struggle to repay education loans without employment opportunities.
Higher Costs Could Change US Job Market Competition
Future employers may sponsor H-1B visas only for highly specialised skills and senior positions.
Therefore, regular IT roles may face fewer sponsorship opportunities. Employers may also reduce starting salary packages to manage additional costs.
The Trump administration’s proposals aim to make US immigration stricter and more expensive. For India, these changes remain highly significant due to its large technical workforce and student population in America.
If implemented in their current form, these rules could affect Indian IT companies’ profitability and reduce the appeal of US education among Indian students.
