US President Donald Trump has issued a sweeping proclamation mandating that all H-1B employees, including current visa holders, pay an annual fee of USD 100,000 (over Rs 88 lakh) through their employer, failing which they will be barred from entering the United States. The new requirement will take effect starting Sunday, September 21, at 12:01 am EDT (9:30 am IST), applying to any H-1B visa holder entering the country after that time. The proclamation specifies that both new H-1B visas and extensions must meet this fee requirement to be processed, and existing visa holders must continue to pay the USD 100,000 yearly to maintain their status.
The order allows the Department of Homeland Security discretion to grant exceptions for individual foreign nationals, employees of specific companies, or workers in certain industries if their H-1B employment is deemed in the national interest and poses no threat to US security or welfare. The restriction is initially set for 12 months but may be extended based on recommendations from federal immigration agencies. Such extensions could impact foreign nationals for whom a Fiscal Year 2027 H-1B cap petition has been approved.
The Trump administration has framed the staggering new fee as a measure to curb what it sees as systemic abuse of the H-1B program, which previously carried only a nominal administrative fee of around USD 1,500. The sudden policy has prompted major technology companies to advise their employees to remain in the US or return quickly to avoid being stranded. Indians are disproportionately affected, accounting for approximately 72% of the nearly 400,000 H-1B visas issued between October 2022 and September 2023, according to US Citizenship and Immigration Services data.
Immigration experts have highlighted the practical implications of the rule. New York-based attorney Cyrus Mehta warned that H-1B holders currently in India may already be unable to meet the deadline, as no direct flights from India could arrive in time. He emphasized that those on business trips or vacations abroad risk being stranded if they fail to enter the US before the deadline. This abrupt change has sent shockwaves through Indian professionals and the IT sector, creating uncertainty and logistical challenges as visa holders scramble to comply with the unprecedented fee requirement.
