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Indiaspora Warns Proposed H-1B Visa Curbs Could Harm the US Economy

The diaspora group cited risks to hiring and rural staffing, as federal rules, proposed fees and wage changes move on separate tracks.

At a glance

  • A Federal Register notice extended the proclamation payment through September 21, 2027.
  • Weighted selection applied to the Fiscal Year 2027 H-1B cap season.
  • The Senate Judiciary Committee received Jon Husted’s wage-threshold bill.

Reviewed November 1, 2026 Checked against the Federal Register

Effective Sep 21, 2025 406 days ago
Affects 5 visa types · 1 country See full list below
Status Active Currently in effect

Indiaspora warned on October 30, 2026, that proposals targeting H-1B visa holders and other foreign professionals could harm the US economy. The US-based, nonpartisan nonprofit said Indian-origin professionals work in healthcare, technology and education. It cited rising anti-Indian rhetoric during the election season.

Executive Director Sanjeev Joshipura said Indian professionals have helped build the country’s innovation strength and generate billions in economic activity.

The image provides a close-up view of a US Customs and Border Protection (CBP) admission stamp found in a passport or...
Indiaspora Warns Proposed H-1B Visa Curbs Could Harm the US Economy

“H-1B workers from India have helped make America the world's innovation leader, generating billions for the American economy. Driving them away could have very serious consequences for communities nationwide, from major cities to small towns.”

The statement grouped proposed restrictions affecting employers, spouses and international graduates. Some separate federal measures, however, have already taken effect.

The proposed restrictions would reach employers, spouses and graduates

The organization flagged a range of possible costs and changes. The measures it cited do not all have the same status.

Group affectedMeasure Indiaspora flaggedPotential effect cited by the group
High-tech and healthcare employersPetition fees exceeding $100,000Higher hiring costs
Early-career graduatesReplacing random selection with a wage-weighted mechanismCould disadvantage new entrants
Laid-off foreign workersEnding the 60-day grace periodLess time after job loss
H-4 spousesFreezing employment authorization documents (EADs)Spouses could lose work permits
International graduatesFees up to $70,000 for Optional Practical Training and STEM extensionsHigher costs to gain US work experience after study

The weighted selection concern overlaps with a federal rule that is already in effect for the FY 2027 cap season. The proclamation payment is another separate measure.

The proclamation payment and weighted selection rule are already in force

Proclamation 10973, Restriction on Entry of Certain Nonimmigrant Workers, created a $100,000 payment requirement for certain H-1B petitions. President Donald Trump issued it on September 19, 2025, and it took effect two days later. The payment was nearly 70 times the previous fee, which ranged from $1,500-4,000.

The proclamation restricted entry for certain workers, subject to limited exceptions for petitions accompanied or supplemented by the payment. More than 700 petitions had carried it, according to a later Federal Register notice. Published September 23, 2026, the notice extended the restriction for another 12 months, until 12:00 a.m. eastern daylight time on September 21, 2027. The notice said the restrictions “have proven to be highly effective but the underlying conditions necessitating the restrictions persist.” The Federal Register notice said the administration viewed some employers, including IT staffing and outsourcing firms, as using lower-paid workers to replace or displace American workers.

Authorities clarified that the payment applied once to a new petition filed after the cutoff. It did not change renewal fees or bar current H-1B holders from traveling in and out of the country. Commerce Secretary Howard Lutnick had described an annual payment applying to new visas and renewals. White House Press Secretary Karoline Leavitt later addressed the one-time nature of the charge.

Other fee proposals and extensions have circulated alongside that payment. President Donald Trump used a Labour Day proclamation to support a proposed USD 103,265 fee on H-1B petitions. Vice President JD Vance backed the proposal, which he described as replacing an earlier $100,000 plan struck down by courts. The proposals are distinct from the payment extended under Proclamation 10973.

The administration also directed the Departments of State, Labor and Homeland Security to scrutinize employers with recent or planned layoffs of similarly situated US workers. Separately, DHS expanded USD 4,000 H-1B and USD 4,500 L-1 fees to visa extensions filed by covered employers. Effective September 9, the rule applies to firms with over 50 staff if 50 per cent hold visas.

The selection system changed as well. On December 29, 2025, the Department of Homeland Security published a final rule prioritizing higher-skilled and higher-paid applicants. It applied to the Fiscal Year (FY) 2027 H-1B cap season. The rule is no longer merely proposed.

A Senate bill and Labor Department proposal would change wage tests

Republican Sen. Jon Husted of Ohio introduced the Protecting American Workers Through H-1B Modernization Act. The bill was referred to the Senate Judiciary Committee.

Current rules let certain H-1B workers at dependent employers qualify as exempt if they earn at least $60,000 or hold a master’s degree or higher. The threshold has stayed at that level since 1998. Husted’s bill would replace it with twice the Social Security Administration’s national average wage index. His office said that would currently mean nearly $140,000. The new threshold would rise or fall with wages.

The Labor Department proposed a separate prevailing-wage change on March 27, 2026, in a notice titled “Improving Wage Protections for the Temporary and Permanent Employment of Certain Foreign Nationals in the United States,” 91 Fed. Reg. 15454. Its analysis found that average wages paid to H-1B workers, and prevailing wages assigned to their positions, remained below average wages for comparable American workers. If finalized, the rule would better align wage levels with pay for similarly employed workers in similar locations.

Indian nationals and major employers account for large FY24 totals

Indian nationals made up 71 per cent of approved H-1B visas in FY24. Company sponsorship figures show participation by major Indian technology companies and US employers.

EmployerH-1B visas sponsored in FY24
Infosys8,137
Tata Consultancy Services7,566
HCL America2,952
LTIMindtree2,136
Wipro1,636
Amazon.com Services LLC10,044
Microsoft Corp.5,189
Meta5,123
Apple4,202

Nasscom estimated H-1B workers made up less than 1 per cent of the employee base at the top 10 Indian and India-centric companies. That estimate concerns those companies, not the full US workforce.

The group cites rural staffing gaps as political debate intensifies

Indiaspora pointed to rural physicians and teachers in under-resourced areas such as the Mississippi Delta. It said domestic recruitment may not fill those jobs quickly enough. The group warned that discouraging foreign professionals could worsen shortages.

It urged leaders across the political spectrum to reject anti-Indian rhetoric. The group said scapegoating foreign talent for short-term political gains could hurt businesses and communities, while straining the strategic bilateral partnership between the US and India.

Pawan Khera, a Senior Congress leader, raised concerns about the extension of the USD 100,000 fee. He said it could affect Indian IT professionals, students and the country’s talent pipeline. Vance, speaking on the All-In Podcast, said the administration was using the charge to prevent companies from replacing American workers with lower-wage foreign labor.

Nasscom said proposed fee increases should be considered against the program’s original purpose: providing temporary skills when US employers face shortages. The organization did not limit its warning to technology hiring.

The midterm elections are set for November 3, 2026. All 435 House seats and 35 of the 100 Senate seats are contested. The results will determine Congress’s political balance from January 2027.

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Who this affects

Visa types
H-1B H-4 L-1 OPT STEM extensions
Countries
India

Sources

Primary documents and official agency releases referenced in this story.

  1. Official source

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Priya Nair

Priya Nair is VisaVerge.com's Work Visa Correspondent, specializing in employment-based immigration — H-1B, L-1, O-1, TN, OPT, and the PERM and green-card process. She breaks down lottery odds, prevailing-wage rules, and employer obligations for the skilled professionals who navigate them every year. Priya's guides help workers and employers make confident, well-informed decisions about building a career in the United States.