The US government introduced a $100,000 entry fee for new H-1B visa applicants outside the country from 21 September 2025. This move has caused concern among Indian tech workers and students, the largest group using this visa. The fee applies only to future applicants entering the US and does not affect current visa holders or those extending or changing status within the country. The policy aims to regulate immigration but raises questions about its impact on the technology sector and international students.
Scope of the New H-1B Fee
The fee applies exclusively to new H-1B visa applicants outside the US after the policy’s effective date. Those already holding valid H-1B visas or with petitions filed before the announcement are exempt. Extensions, transfers, or status changes within the US remain unaffected. The government clarified that the fee targets entry into the country, not the visa status itself.
Impact on Indian Tech Workers and Students
Indian professionals and students form the bulk of H-1B visa users. The fee is expected to discourage new applicants from India and similar countries. Tech giants like Amazon and Microsoft warned employees against international travel during the transition. Students on F-1 visas converting to H-1B inside the US are exempt, but those outside face the fee. This could reduce the inflow of skilled workers and affect the STEM talent pipeline.
Legal and Administrative Ambiguities
The proclamation’s wording has led to confusion among immigration attorneys. Key questions remain about fee payment mechanisms and annual applicability. While the fee is interpreted as payable upon each re-entry, details are unclear. Legal experts anticipate court challenges, similar to previous presidential proclamations on travel restrictions. Until resolved, uncertainty will persist for applicants and employers.
Exemptions and National Interest Clause
The proclamation allows limited exemptions under national interest, though criteria are vague. Healthcare professionals may qualify, but specifics are undefined. The broad nature of this clause leaves room for case-by-case decisions. This uncertainty complicates planning for employers and foreign workers in critical sectors.
Alternatives to H-1B Visa
The high fee may push applicants towards other visa categories like O-1 or L-1. However, these visas have different rules and limitations, such as company restrictions and less flexibility in job changes. Employers might prefer alternatives to avoid the fee, but this could reduce mobility and opportunities for foreign workers.
Long-Term Industry and Immigration Effects
The fee may reshape the US technology workforce and immigration landscape. Reduced H-1B entries could slow innovation and competitiveness. International students might reconsider career plans in the US. Short-term benefits for current visa holders may be offset by a smaller talent pool. The policy signals a tougher stance on skilled immigration.
Legal Status of Presidential Proclamations
A presidential proclamation is an executive order with legal force unless challenged in court. It is not legislation but directs federal agencies. The administration cites national security to justify the fee. Congress retains the power to change H-1B rules. Pending litigation will determine the proclamation’s future and its enforcement.
Questions for UPSC:
- Discuss in the light of recent US immigration policies, how do presidential proclamations impact foreign workers and international relations?
- Critically examine the role of skilled immigration in the economic development of a country, with examples from the US and India.
- Explain the challenges and legal frameworks involved in regulating international labour mobility in the globalised world.
- With suitable examples, discuss the impact of visa policies on the technology sector and higher education in host countries.
