Washington, D.C., September 19, 2025 — U.S. President Donald Trump on Friday signed an executive order significantly increasing fees for H-1B visas, a move expected to hit Indian IT firms hard.
According to the order, the H-1B nonimmigrant visa program — originally designed to bring “temporary workers into the United States to perform additive, high-skilled functions” — has been “deliberately exploited to replace, rather than supplement, American workers with lower-paid, lower-skilled labor.”
The financial implications are severe. Each H-1B petition will now require a fee of $100,000 (approximately ₹88 lakh), creating a substantial barrier for foreign workers, particularly from India. For many, the alternative pathway of applying for a U.S. Green Card offers little relief, as lengthy wait times mean repeated visa renewals — each carrying the steep new fee.
The impact was immediate in the markets. Shares of Indian IT majors Infosys and Wipro dropped by up to 4.5% in U.S. trading, with their American Depositary Receipts (ADRs) bearing the brunt of investor concerns. Trump specifically called out the sector, alleging that “information technology firms have prominently manipulated the H-1B system, significantly harming American workers in computer-related fields.”
The order places additional compliance burdens on employers. Companies must maintain proof of payment, which will be verified by the Secretary of State. Both the Department of Homeland Security and the State Department are tasked with denying entry to workers whose employers fail to meet the requirements.
In response, several global technology firms have issued internal advisories to employees on H-1B and H-4 visas. Workers currently in the U.S. have been strongly urged to avoid international travel to prevent possible denial of reentry. Meanwhile, employees abroad have been advised to return before the deadline, even if it requires last-minute travel arrangements.
Although the proclamation does not explicitly address H-4 dependents, many companies have extended the same cautionary guidance to them as well.
The order takes effect at 12:01 a.m. EDT on September 21, 2025, and applies to individuals entering or attempting to enter the United States from that date onward.
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