(NEW YORK, UNITED STATES) President Trump approved an unprecedented $100,000 annual H-1B fee that takes effect on September 21, 2025, setting off immediate shockwaves in global technology markets and sparking warnings from industry body Nasscom about disruptions to current projects. The fee, issued via a presidential proclamation just days before rollout, applies to all new H-1B applications filed on or after the effective date, according to administration statements shared with industry stakeholders. Legal experts expect fast-moving court challenges that could shape both timing and scope.

The market reaction was swift. Indian IT stocks traded in New York slid, with Infosys and Wipro American Depositary Receipts falling as much as 4% during the session. Infosys Ltd (INFY) closed at $16.97, down 3.24%, with a small dip after hours. Cognizant also declined. U.S. megacaps — Alphabet, Microsoft, and Amazon — were more steady, a reflection of their broader revenue bases and stronger pricing power. Investors punished firms with heavier H-1B fee exposure, especially Indian IT services companies that depend on onsite rotations to deliver complex U.S. projects.

H1B Visa $100,000 Fee Structure Table

The new $100,000 H1B visa fee represents a seismic shift in U.S. immigration policy, but its application is surprisingly targeted rather than universal. The fee primarily impacts new H1B applicants coming from abroad and those requiring visa stamping at U.S. consulates overseas. Current H1B holders within the United States are largely protected from this financial burden, as renewals, extensions, transfers between employers, and re-entries with valid visas remain exempt from the substantial fee.

This selective implementation creates a two-tiered system that heavily penalizes fresh international talent while protecting the existing H1B workforce. Employers planning to hire new foreign workers will face dramatically increased costs, potentially reshaping hiring strategies and making domestic talent acquisition more attractive. The timing of September 21, 2025, gives employers and prospective H1B workers a narrow window to file petitions under the current fee structure before the new requirements take effect.

H1B Visa Cost Comparison Table

The introduction of the $100,000 H1B fee transforms what was once a manageable immigration expense into a prohibitive financial barrier for many employers. While traditional H1B costs typically ranged from $2,000 to $5,000 for most petitions, the new fee structure catapults total expenses to between $102,000 and $105,000 or more. This represents a cost increase of approximately 2,000-5,000%, making H1B hiring one of the most expensive employment decisions a company can make.

The stark contrast becomes even more pronounced when considering that all existing fees remain unchanged—the $100,000 addition is purely incremental cost with no corresponding benefit or service enhancement. This dramatic shift will likely force employers to fundamentally reconsider their international hiring strategies, potentially favoring internal transfers, alternative visa categories, or domestic recruitment. Only the largest corporations with substantial budgets may continue pursuing H1B petitions at scale, effectively pricing out smaller employers from accessing global talent.

H1B $100,000 Fee Exemptions Table

The exemption landscape for the new $100,000 H1B fee reveals a complex web of uncertainty, with only two categories enjoying confirmed relief from the substantial financial burden. Current H1B holders with valid visas and petitions filed before September 21, 2025, represent the only “safe harbor” provisions with high certainty of exemption. These clear-cut exemptions provide crucial protection for existing H1B workers and create a powerful incentive for employers to rush petition filings before the deadline.

The majority of potential exemptions fall into a frustrating gray area, particularly affecting cap-exempt organizations like universities, research institutions, and nonprofits. While these entities have historically enjoyed preferential treatment in H1B processing, the new fee structure’s impact on their exemption status remains unclear, creating planning challenges for academic and research sectors. The “case-by-case” national interest determination adds another layer of uncertainty, offering hope but no guarantees for employers who can demonstrate compelling public benefit. This ambiguous exemption framework may prompt many organizations to seek legal clarification or pursue alternative immigration strategies while awaiting definitive guidance.

The numbers are stark. A firm using 1,000 new H-1B visas a year would face $100 million in extra annual costs. At 5,000 visas, that balloons to $500 million per year. Even for cash-rich companies, those are hard choices. For Indian IT services providers, the pressure is sharper because project staffing models often rely on steady H-1B inflows and frequent redeployments.

A recent Mint analysis estimated the revised fee could erase roughly 10% of FY25 profits at major firms with India roots — TCS, Cognizant, HCLTech, Infosys, and LTIMindtree — if issuance remains unchanged and costs are not passed to clients.

Nasscom and Industry Reaction

Nasscom, which represents India’s technology sector, said the one-day implementation window is unworkable and risks business continuity. Member companies report unfinished client transitions, visa stamping trips in progress, and contract timelines that cannot absorb a sudden six-figure per-visa charge with no grace period.

Firms are weighing emergency staffing shifts and redeployments in the United States 🇺🇸, and expanded nearshoring to Canada 🇨🇦 and Latin America to keep projects on track. According to analysis by VisaVerge.com, the early scramble underscores how much the sector relied on predictable costs and steady visa planning cycles.

The lack of a transition period has created immediate operational and legal uncertainty across the sector.

Policy Details and Immediate Questions

The administration used a presidential proclamation — not an executive order — to impose the new H-1B fee. Officials say the fee is effective for new filings from September 21, 2025.

Key open questions include:
– Whether the rule affects activities tied to existing H-1B workers (e.g., visa stamping after travel or port-of-entry revalidation).
– Whether there will be caps, exemptions, or phase-ins for small employers, research institutions, or nonprofit hospitals.

Early guidance was unclear, prompting calls for formal clarifications. The lack of transition time has confused filing teams preparing petitions and consular steps scheduled this week.

Filing basics (what employers currently use)

Employers continue to prepare submissions for new H-1B hires while awaiting agency instructions on payment mechanics. Baseline forms remain:

• Standard petition: Form I-129 for H-1B classification — see the USCIS page: https://www.uscis.gov/working-in-the-united-states/temporary-workers/h-1b-specialty-occupations
• Premium processing (optional): Form I-907 — https://www.uscis.gov/i-907
• Consular visa application: Form DS-160 — https://travel.state.gov/content/travel/en/us-visas/visa-information-resources/forms/ds-160-online-nonimmigrant-visa-application.html
• Form I-129 page: https://www.uscis.gov/i-129

Company finance teams are modeling the fee as a direct per-new-H-1B add-on, separate from existing statutory fees and the optional premium processing charge. Early summaries shared by counsel mentioned no exemptions, raising the risk that all new H-1B hires carry the same six-figure charge unless courts or agencies narrow the measure.

Market Fallout and Company Playbooks

Indian IT stocks moved first because of high U.S. exposure. Analysts expect near-term margin compression and possible guidance resets as firms reassess deal pricing. Some vendors have reduced reliance on H-1Bs — in some cases to about 20–50% of North America deployments — but the new H-1B fee may outpace those efforts.

Companies better placed to manage the shock tend to have:
– Larger U.S. onshore workforces,
– Automation of routine tasks,
– Scaled nearshore hubs in Canada and Mexico.

Planned phases of market reaction:
1. Next few days and weeks:
– Expect volatile trading in Indian ADRs and domestic shares.
– Management commentary on pass-through clauses and staffing pivots may calm markets.
2. One to three quarters:
– Watch for earnings guidance changes, regional cost disclosures, and contract repricing.
– Vendors that move faster on local hiring and nearshoring may defend margins better.
3. Tail risk:
– If courts do not halt the rule and agencies collect fees as written, labor costs for visa-heavy models may rise for years, forcing a pricing reset.
– If a court issues a stay or softens the rule, a relief rally could follow.

U.S. Big Tech is less affected in trading for now due to scale and diversified revenue, but analysts warn that enduring, uniform application of the fee would raise unit costs in teams heavy on specialized H-1B hires (e.g., cloud, AI, security).

Legal and Contract Considerations

Legal scholars question whether a presidential proclamation can set a six-figure fee without congressional action. Expected legal challenges will likely test:
– The proclamation’s statutory authority,
– Whether agencies followed required procedures,
– Whether economic harm justifies a nationwide injunction.

Companies are preparing declarations documenting project risks, lost milestones, and potential client penalties tied to the abrupt cost shock.

Contract mechanics will be critical. Many large deals include clauses that allow pass-through of new government taxes and fees, but the open questions are:
– How quickly can vendors reprice?
– Will clients agree to full pass-through for a six-figure per-visa cost?

General counsels are reviewing master services agreements while sales leaders prepare targeted increases tied to delivery towers with heavy visa use.

Practical Steps for Project and Staffing Teams

For project managers and staffing teams, near-term actions include:

• Map all roles relying on new H-1B filings in the next 60–90 days.
• Identify in-country replacements and nearshore coverage for critical paths.
• Alert clients to delivery risks tied to the new H-1B fee and present options (remote work, split teams).
• Escalate deals with pass-through language and fast-track change orders where needed.

Operational adjustments already observed:
– Pausing non-urgent transfers and internal role changes that require new H-1B filings.
– Accelerating local recruitment, campus programs, and mid-career hires who don’t need sponsorship.
– Nearshore centers opening weekend shifts to cover U.S. hours on short notice.
– Asking clients to approve temporary remote delivery until travel plans are reworked.

Implications for Workers and the Broader Policy Message

For individual workers, the immediate changes center on timing, not status. The proclamation targets new applications, not people already in H-1B status. Still, travel plans and stamping trips should be reviewed with counsel until agencies clarify whether the fee touches renewals tied to existing approvals. Many employers will avoid travel that might force consular steps in the near term.

The broader policy message is clear: the administration aims to reduce reliance on foreign professional workers by making new filings far more expensive. That may accelerate shifts toward:
– Local U.S. hiring,
– Increased training,
– Heavier use of nearshore and remote delivery.

But in the short run, clients still want the same outcomes on the same timelines, and the immediate question is who carries the cost.

Key Catalysts to Watch

• Court filings seeking a temporary restraining order or preliminary injunction.
• Any agency FAQs explaining scope, timing, and collection methods for the new H-1B fee.
• Company filings disclosing headcount, visa exposure, and revised cost plans.
• Client acceptance of change orders and pass-through charges.
• Secondary effects, such as a rise in cap-exempt placements or shifts to other visa categories.

For now, the rule’s speed and size dominate the narrative. Markets have started to price in a new cost floor for global IT services, while legal teams race to test the proclamation in court. Whether this becomes a brief shock or a lasting change will depend on judges, agencies, and boardroom decisions made over the next few weeks, not months.