Trump Targets H-1B Visa, Indian IT Firms Face Billions in Costs
Washington, D.C.: In a move that could fundamentally alter the US immigration landscape, the Trump administration has unveiled sweeping changes to the H-1B visa program, which is heavily relied upon by Indian tech companies. The proposed reforms include scrapping the lottery system and imposing a massive $100,000 fee for every new application.
End of the H-1B Lottery?
The Department of Homeland Security (DHS) has floated draft rules suggesting the end of the current lottery-based selection system, which randomly allocates the 85,000 visas issued each year.
In its place, the administration wants a “weighted selection process” that would prioritize applicants with higher salaries and specialized skills. Officials argue the system would ensure that only the “best and brightest” foreign professionals secure visas, while reducing chances of companies using H-1B workers to cut costs.
Trump $100,000 Fee Hike
Adding to the shock factor, President Donald Trump has proposed a staggering $100,000 fee per H-1B visa application.
White House spokeswoman Taylor Rogers defended the move, saying it fulfills Trump campaign promise to “put American workers first.”
“It discourages companies from abusing the system to undercut wages, while still allowing American businesses access to high-skilled foreign talent,” she said.
Why Indian IT Firms Are Worried
Indian technology majors like TCS, Infosys, and Wipro have long depended on the H-1B program to send thousands of engineers and IT specialists to the US—one of their biggest markets.
With Indians accounting for nearly 71% of approved H-1B visas, the proposed changes could result in billions of dollars in additional costs for these firms. Analysts warn that companies may be forced to either:
- Scale back hiring in the US, or
- Shift jobs and project work back to India.
White House staff secretary Will Scharf also labeled the H-1B program as one of the “most abused visa systems” in the United States, further signaling the administration hardline approach.
India Diplomatic Push
The timing of the announcement coincides with the visit of External Affairs Minister S. Jaishankar and Commerce Minister Piyush Goyal to New York. Both leaders are expected to raise the visa issue in discussions with Trump administration officials as part of broader trade and immigration talks.
For India, the stakes are high—H-1B visas not only sustain thousands of Indian professionals in the US but also form a critical part of the business model for major IT outsourcing firms.
What’s at Stake?
The H-1B visa has long been seen as a bridge between Silicon Valley and India tech workforce. Critics of Trump move argue that such restrictive policies could:
- Increase costs for US tech firms reliant on Indian expertise
- Slow innovation by reducing access to global talent
- Fuel trade tensions between Washington and New Delhi
Experts also warn that if implemented, the $100,000 fee could price out smaller companies, leaving only the largest corporations able to sponsor foreign workers.
The Road Ahead
While the proposals are still in the draft stage, the tone from the Trump administration is clear—US jobs for Americans first. With elections approaching, the visa crackdown could play well domestically, but risks straining ties with India and the global tech industry.
For now, Indian IT giants are bracing for what could be one of the biggest disruptions to the H-1B system in decades.
