H-1B visas explained: A look at the impact of Trump's plan to charge a $100K fee

The H-1B visa program, which allows U.S. employers to hire foreign professionals for specialized roles requiring at least a bachelor's degree, is undergoing significant changes. Initially, the program cost employers a few thousand dollars, but proposed reforms under the Trump administration aim to increase the application fee to $100,000 for new applications. This fee is a one-time charge, not an annual one.

The H-1B visa is crucial for filling labor shortages in fields like computer science, engineering, and medicine, and it is heavily utilized by the tech industry. For fiscal year 2026, over 350,000 registrations were received, with only 120,000 selections. The proposed fee hike is expected to disproportionately impact Indian companies, as approximately 71% of H-1B users come from India, with a substantial portion of the remainder from China.

These changes also have implications for U.S.-India relations, adding to existing trade tensions. The U.S. and India have not yet finalized a trade deal, and tariffs continue to escalate, with the H-1B visa situation now a prominent issue. This comes amid broader trade negotiations and previous actions, such as the removal of India's GSP status, highlighting a complex and ongoing trade dynamic between the two nations.

• The H-1B visa program allows U.S. employers to hire foreign professionals for specialized jobs requiring at least a bachelor's degree.
• Proposed changes aim to significantly increase the application fee for new H-1B visas from a few thousand dollars to $100,000.
• This fee hike is a one-time charge, not an ongoing annual expense.
• For fiscal year 2026, there were over 350,000 H-1B registrations, with 120,000 selected.
• The changes are expected to have a notable impact on Indian companies, as a majority of H-1B visa holders are from India.

H-1B Visa Program Overview [00:12]

• The H-1B visa permits U.S. employers to hire foreign professionals in "specialty occupations."
• These occupations require at least a bachelor's degree, often in fields like computer science, engineering, or medicine.
• The program's intent is to address labor shortages where U.S. workers may be scarce.
• It brings in individuals with skills not readily available in the domestic workforce.
• Workers cannot obtain this visa independently; a U.S. employer must petition on their behalf.
• The process involves electronic registration and payment of required fees.
• Previously, the application process cost employers a few thousand dollars.
• Under proposed changes, the fee for a new application is set to jump to $100,000.
• Applications go through a selection process managed by U.S. Citizenship and Immigration Services.
• Not all applicants are granted an H-1B visa.
• For fiscal year 2026, there were over 350,000 total registrations, but only 120,000 were selected.
• H-1B visas are designated for highly skilled workers from outside the U.S. to work domestically.
• The tech industry heavily utilizes these visas.

The H-1B visa allows US employers to hire foreign professionals in so-called specialty occupations, jobs that require at least a bachelor's degree, often in fields like computer science, engineering, or medicine. The idea is to fill labor shortages in areas where US workers may be scarce by bringing in other individuals with skills not otherwise available in the domestic workforce.

Proposed H-1B Fee Hike and Its Impact [01:53]

• There was initial confusion surrounding the announcement of the fee changes.
• Clarification indicates the $100,000 fee is a one-time charge, not an annual one.
• The stock market has shown a greater impact on Indian companies than on U.S. tech giants following the announcement.
• Initially, there was concern that the fee would be collected annually over six years.
• Such an annual fee would have been a material, ongoing negative for the approximately 71% of H-1B users from India.
• The bulk of the remaining H-1B users come from China.
• A six-year imposition of a $100,000 fee would have been materially detrimental to India and migration to the U.S.
• Approximately 83,000 to 86,000 workers per year receive this H-1B visa.
• The fee hike represents a material negative for India.
• The administration has indicated there will be licenses, exclusions, and offramps, likely benefiting tech sectors closely aligned with the administration.

As you suggested, there was a lot of confusion as Secretary Lutnik came out and said that this was going to be an annual fee collected over six years, which would have been a material ongoing sort of persistent negative for the what I think it's 71% of H-1B users that come from India.

Implications for U.S.-India Relations and Trade [02:56]

• The H-1B visa changes have implications for U.S. relations with India.
• This development occurs ahead of UN Week, where global leaders gather.
• The U.S.-India trade situation is described as "not good."
• There is no current trade deal between the U.S. and India.
• Tariffs continue to escalate between the two countries.
• The H-1B visa situation is the latest issue, but preceded by other trade actions.
• Previous actions include secondary tariffs imposed by the U.S. on Russia via unilateral authority.
• This action was framed as a response to countries not negotiating with the U.S. as desired.
• The current U.S. Trade Representative has been focused on India.
• This focus included stripping India of its GSP (Generalized System of Preferences) status.
• There are several issues to work through in U.S.-India trade relations.
• At least three phases of trade negotiations were anticipated with India.
• The first phase of these negotiations is not yet complete.

The US India trade situation is not good. Um, not only do we not have a deal with India, but the tariffs keep ratcheting up. Latest is obviously this H-1B visa situation.

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