Sat Sep 20 06:04:58 UTC 2025: **Summary:**

A new policy announced by the Trump administration in the U.S. significantly increases the cost of H-1B visas by implementing a $100,000 annual fee. The administration justifies the move by claiming it aims to address the “systemic abuse” of the H-1B visa program by IT outsourcing companies, who they allege are replacing American workers with lower-paid foreign workers. The proclamation, set to expire in a year, cites data showing a rise in foreign STEM workers in the U.S. and examples of companies laying off American employees while simultaneously hiring H-1B visa holders. Data from USCIS shows Amazon and TCS as the top beneficiaries of H-1B visas in 2025, with Indian IT firms being major users of the program.

**News Article:**

**U.S. Imposes $100,000 Fee on H-1B Visas, Impacting Indian IT Sector**

**New York/Washington – September 20, 2025** – In a move poised to significantly impact Indian IT professionals and companies, the Trump administration has announced a substantial $100,000 annual fee on H-1B visas. The proclamation, signed on Friday and effective September 21, 2025, aims to curb what the administration calls “systemic abuse” of the H-1B visa program. The policy is set to expire in one year.

According to the U.S. Citizenship and Immigration Services (USCIS), Amazon topped the list of H-1B visa beneficiaries with 10,044 workers as of June 2025. Tata Consultancy Services (TCS) followed in second place with 5,505 approved visas. Other major recipients include Microsoft, Meta, Apple, Google, Deloitte, Infosys, Wipro, and Tech Mahindra Americas.

The administration argues that IT outsourcing companies have “prominently manipulated” the H-1B system, displacing American workers with lower-paid foreign labor. The proclamation highlighted data indicating a dramatic increase in foreign STEM workers in the U.S. and cited examples of companies laying off American employees while simultaneously hiring H-1B visa holders. According to the document, one software company approved for over 5,000 H-1B workers in FY 2025 laid off over 15,000 employees around the same time. Another IT firm was approved for nearly 1,700 H-1B workers in FY 2025, while announcing it was laying off 2,400 American workers in Oregon in July.

The U.S. has received enough petitions to reach the congressionally mandated 65,000 H-1B visa regular cap and the 20,000 H-1B visa U.S. advanced degree exemption, known as the master’s cap, for fiscal year 2026.

This new policy is expected to have major implications for Indian IT firms, which rely heavily on the H-1B visa program to staff U.S. operations and provide services to American clients. The increased cost could force companies to reconsider their hiring strategies, potentially leading to a reduction in the number of Indian IT professionals working in the United States. The move also adds to the growing tension between the U.S. and other nations concerning immigration and trade policies.

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