Revanth Reddy: H-1B Fee Hike Totally Unacceptable Amid $100K Levy

(TELANGANA) Telangana Chief Minister Revanth Reddy on Saturday condemned the newly announced $100,000 annual fee on new H-1B petitions for workers outside the United States, calling it “totally unacceptable” and warning of immediate harm to Indian tech professionals and the companies that employ them. The abrupt policy—set to take effect on September 21, 2025, by presidential proclamation signed by President Trump—marks the most dramatic change to H-1B visa fees in the program’s history. It applies to all new H-1B filings for workers abroad submitted on or after that date, with no phase-in period, and comes on top of existing charges that already run into thousands of dollars per case.

Immediate economic and workforce impact

The change lands squarely on India’s vast IT workforce pipeline and the global technology supply chain that connects Hyderabad, Bengaluru, Pune, and other Indian hubs with U.S. employers. Revanth Reddy, who leads a state where IT services power jobs and exports, said the sudden cost spike would price out startups and smaller firms and could push projects and investment away from the United States.

Industry groups echoed that view, noting the H-1B category supplies specialized skills in software, AI, chip design, and healthcare—roles that many U.S. companies struggle to fill domestically.

“Totally unacceptable” — Chief Minister Revanth Reddy

What the policy requires

• U.S. employers seeking to hire a new H-1B worker from abroad must pay an extra $100,000 per year per worker for any qualifying petition filed on or after September 21, 2025.
• The surcharge applies immediately for filings on or after the effective date, with no phase-in.

According to analysis by VisaVerge.com, the new surcharge means the real annual cost to onboard a single H-1B employee from outside the country could now exceed $115,000, before legal fees and payroll. Employers say the math no longer works, especially for early-stage companies that build teams step by step and depend on global recruiting to scale.

Exemptions and scope

• The fee does not apply to H-1B petitions already approved before September 21, 2025.
• The fee does not apply to petitions for workers already inside the United States, including extensions, amendments, or changes of employer.
• New overseas hires (first-time filings from abroad) are the primary targets and face severe and immediate impact.

NASSCOM criticized the one-day implementation window and warned of shockwaves across client work, product timelines, and long-term R&D planning. The group argued the measure could push companies to spread jobs to countries with more stable rules and lower costs.

Fee landscape — how this stacks up

The H-1B program already includes several fees. The new surcharge must be added on top of the baseline:

Employers must now place the $100,000 annual fee on top of existing fees when applicable.

Human consequences — workers and families

Indian nationals, who make up the majority of new H-1B recipients, stand to bear the brunt. Families in Telangana and across India plan moves and school years around H-1B start dates; a sudden freeze on hiring could stall these plans.

• Young graduates and mid-career specialists view the U.S. as a destination for cutting-edge roles, higher pay, and career growth.
• Recruiters in Hyderabad report advising candidates to brace for delays and prepare backup plans in Canada, Europe, or the Middle East.

Employer and sectoral concerns

U.S. tech executives warned the policy would limit access to global talent and slow product development, risking competitiveness in AI research, chip design, and cybersecurity. Hospitals and health systems that hire H-1B doctors and pharmacists could also feel the effect.

Although extensions and employer changes inside the United States are exempt, many employers rely on entry- and mid-level hires who need a first H-1B from overseas.

Filing process and administrative steps

USCIS will process and collect fees; U.S. consulates will handle visa interviews and stamping. Employers must still follow normal petition steps:

1. Secure a Labor Condition Application (LCA) with the Department of Labor.
2. File Form I-129 with USCIS with the required base fees.
3. Complete consular processing (for overseas candidates).

Petitioners must add the new $100,000 annual fee at filing for any case that triggers the rule. USCIS is expected to issue procedural updates, including payment methods, receipt codes, and tracking instructions.

Official form links:
– Form I-129: https://www.uscis.gov/i-129
– Form I-907 (premium processing): https://www.uscis.gov/i-907
– DS-160 (visa application): https://ceac.state.gov/CEAC/

Practical employer choices

Companies broadly face three options for overseas hires:

1. Proceed and pay the new surcharge (likely only large firms or for business-critical roles).
2. Convert to U.S.-based candidates already in the country (e.g., F-1 OPT students) who can avoid the surcharge.
3. Defer or relocate work to offshore teams or other countries.

Consultants predict some firms will expand offshore delivery centers in India, while others will prioritize candidates already onshore. This could reshape early-career hiring and put students on U.S. campuses at an advantage.

Industry and government responses

• NASSCOM urged both governments to discuss the fallout, highlighting mutual benefits of U.S.-India tech ties.
• Telangana’s IT leaders stressed that sudden changes erode trust and disrupt headcount planning.
• U.S. industry groups called for immediate review, arguing the policy won’t create domestic talent quickly and will instead slow hiring and projects.

Legal and procedural uncertainty

Key outstanding questions for employers and counsel include:

• Does the $100,000 annual fee renew automatically every year the H-1B is valid?
• How is the fee applied if a worker departs mid-year?
• Will partial refunds be offered if the worker leaves early?

Legal challenges are likely. Trade groups and companies may file suits arguing the surcharge is punitive or beyond executive authority. Courts might issue injunctions that pause enforcement while litigation proceeds.

Practical guidance for employers (recommended steps)

• Review all September and October 2025 H-1B starts for workers abroad.
• Confirm whether a case is subject to the new fee: worker outside the U.S. and filing date on or after September 21, 2025 = surcharge applies.
• Build a complete fee budget including registration, petition, fraud prevention, training, biometric fees, premium processing (if used), consular fees, and the $100,000 annual fee.
• Consider switching candidates to U.S.-based onboarding pathways (study → OPT → in-country cap filing) where feasible.
• Document approval dates and case histories carefully to protect exemptions for pre-effective-date approvals.
• Monitor USCIS for payment instructions, receipt codes, and procedural updates.

USCIS site for updates: https://www.uscis.gov
Department of Labor: https://www.dol.gov
NASSCOM: https://www.nasscom.in

Broader economic and political effects

The H-1B program has historically supplied specialized workers during tight labor markets and contributed to patents, startups, and exports. Critics say the surcharge will:

• Push startup formation and product development to other countries.
• Encourage remote-first overseas teams.
• Reduce U.S. jobs, tax revenue, and long-term research partnerships.

Supporters argue the move protects U.S. jobs and incentivizes domestic training. The dispute sets up a political and legal fight over whether such a sweeping surcharge can be imposed by executive action.

What workers and families should watch

• If an H-1B was approved before September 21, 2025, that approval remains exempt.
• Any new filing for the same worker from abroad after the effective date may trigger the fee.
• Employers and employees should coordinate on travel and entry timing where approvals exist and document all dates to avoid accidental fee triggers.

Near-term outlook

• Immigration attorneys expect a drop in new H-1B filings from abroad starting late September.
• Cases that proceed will likely be limited to very large firms or essential roles.
• Employers will need to decide which offers to honor, defer, or cancel.
• Legal filings and policy clarifications are likely in the coming weeks.

Closing summary

For now, the rule is clear: any new H-1B petition for a worker outside the United States, filed on or after September 21, 2025, carries a $100,000 annual fee, in addition to all existing H-1B visa fees. The human impact—on a database engineer in Hyderabad, a hospital hiring a specialist, or a mid-size SaaS firm’s campus plans—is central to the debate.

Revanth Reddy’s “totally unacceptable” label reflects urgency across Telangana and India’s tech capitals. Whether the policy faces a court pause, revision, or full enforcement, employers and workers must plan now for a historic change in the cost of bringing new H-1B talent from abroad.