In a surprise move, the US government has imposed a $100,000 entry fee on new H-1B visa holders arriving after September 21, 2025. The decision has sparked anxiety among Indian tech professionals and students, who make up the largest share of H-1B users. While the policy exempts current visa holders already in the US, its unclear provisions have generated widespread confusion and debate among immigration experts and technology companies.
Scope and Applicability
The fee applies only to new H-1B applicants entering from outside the US. It does not affect individuals already holding valid H-1B status, nor does it apply to extensions, transfers, or changes of status within the country.
However, ambiguity remains around re-entry: visa holders with valid H-1B stamps traveling abroad may be asked to pay the fee again upon return. Early indications suggest the fee could be levied each time a person enters, rather than as a one-time charge.
Impact on Current H-1B Holders
Those already in the US on valid H-1B visas are shielded from the new charge for routine extensions or job changes. But uncertainty about international travel has led tech giants like Amazon and Microsoft to advise employees to postpone foreign trips until clearer guidance is issued.
Effect on F-1 Students and New Applicants
F-1 students already in the US who transition to H-1B status are not required to pay the fee. By contrast, students or workers abroad who secure an H-1B through the lottery will have to pay $100,000 before stamping their visa.
This sharp cost increase could discourage Indian IT firms and multinational companies from sponsoring fresh candidates, especially those based outside the US.
Exemptions Under ‘National Interest’
The proclamation allows for exemptions in cases deemed to serve “national interest.” Healthcare professionals, including physical therapists and nurses, may qualify, but the administration has not defined the criteria. Immigration lawyers warn this vagueness could complicate corporate planning and create inconsistent enforcement.
Possible Shift to Other Visa Categories
The steep entry cost may push applicants and employers to explore alternative visa options. L-1 visas, which transfer employees within multinational companies, or O-1 visas for individuals with extraordinary ability, may see increased demand. However, L-1 visas limit job mobility, and O-1 visas set a higher eligibility bar.
Implications for US Tech Industry
Experts warn that the fee could shrink the US talent pipeline, especially in STEM fields, where H-1B visa holders play a crucial role. While international students on Optional Practical Training (OPT) may temporarily benefit from reduced competition, the long-term effect could slow innovation and erode the US’s competitive edge in technology and research.
Legal and Political Outlook
The new policy was introduced via presidential proclamation, not congressional legislation, making it more vulnerable to legal challenge. The administration is invoking national security and border control powers to justify the move. Immigration attorneys expect lawsuits, echoing past challenges to travel bans. The ultimate fate of the fee may rest with the US courts.