(INDIA) A proposed overhaul of the H-1B visa system in the United States, including a $100,000 one-time H-1B fee for new petitions, could be revisited if a broader trade agreement with India gains momentum, former U.S. Ambassador to India Tim Roemer said in a recent interview. His comments come as both governments weigh economic ties against political pressure over immigration and technology supply chains, and as Indian officials intensify high-level talks to blunt the policy’s impact.
Roemer said the fee plan, which sparked swift criticism from industry and immigrant communities, “could still be open to negotiation” if bilateral trade discussions move forward. He compared the current moment to a previous episode when the U.S. used tariffs as leverage with India during President Trump’s term. “Visa policy can become a negotiating point,” he noted, pointing to diplomatic space that could reopen the H-1B conversation even after a policy announcement.
The White House has already sought to calm immediate fears. Officials stressed three points: the $100,000 H-1B fee would be a one-time charge for new petitions only; there would be no retroactive charges for people already holding H-1B status or reentering the U.S.; and the fee would not apply to renewals, but only to new entrants in the upcoming lottery cycle. These clarifications aim to protect current workers while the administration pursues its immigration priorities.
According to analysis by VisaVerge.com, the proposal remains in flux, with multiple tracks—diplomatic talks, formal rulemaking, and potential legal review—shaping what happens next. The policy’s fate could hinge on whether trade talks yield concessions that make room for a narrower fee or a phased approach, or whether pushback in India and the United States leads to a broader rethink.
Policy contours and diplomatic calculus
As of September 26, 2025, Indian External Affairs Minister S. Jaishankar met U.S. Secretary of State Marco Rubio in New York to discuss the H-1B fee hike. Indian Commerce Minister Piyush Goyal and U.S. Trade Representative Jamieson Greer also took part. India’s Ministry of External Affairs, along with its embassy in Washington, says it is in “active touch” with U.S. authorities.
Officials have raised humanitarian and economic concerns, warning that the fee could:
– Disrupt families,
– Weaken career pipelines for skilled workers,
– Slow decades of exchange in technology and education.
On the U.S. side, the Department of Homeland Security has issued a notice of proposed rulemaking, opening a public comment window for stakeholders to respond. That means the policy is still moving through the regulatory process.
Industry groups and universities are expected to file responses detailing how the fee could affect:
– Hiring,
– Research projects,
– Campus programs tied to internships and practical training pipelines that often lead to H-1B petitions.
The United States also published clarifications to narrow immediate confusion, but did not back away from the core idea of a one-time charge for new H-1B petitions.
Roemer emphasized the policy is not set in stone. If bilateral efforts falter, he said, U.S. courts could review whether the fee and related changes overstep executive authority, or Congress could move to narrow or reframe the measure. That opens three paths that could reshape the policy before it takes effect:
1. Diplomacy (trade talks and bilateral concessions)
2. Litigation (court challenges to executive authority or procedure)
3. Legislation (Congressional hearings or statutory adjustments)
Impact on Indian stakeholders
For India’s tech community, the stakes are high. Indian IT services firms and startups rely heavily on the H-1B program to send engineers, project managers, and researchers to client sites and U.S.-based teams.
Key data and concerns:
– In the latest period cited by officials, only 24,766 visas were issued to Indian firms in H1 FY25, with an 80% rejection rate for Indian applications.
– A $100,000 H-1B fee layered on top of current costs would raise barriers for small and mid-size companies.
– Larger firms that deploy cohorts of specialists could face tough choices about who to sponsor.
The risk extends to students and early-career professionals. Many arrive in the U.S. for graduate study before moving into cap-subject roles. Roemer pointed to research showing that close to a quarter of net new jobs in U.S. tech come from people who first came as foreign students.
Possible consequences:
– Talented graduates may rethink U.S. options and consider Canada, Europe, or staying in India.
– Slower flow of advanced skills could affect long-standing innovation partnerships.
– Families could face disruptions—delayed dependent travel, settlement plans, and added stress from uncertain timelines.
Even with White House assurances that the fee would not apply to renewals or existing visa holders, an upfront cost spike may force employers to prioritize a smaller pool of candidates, leaving many qualified workers out for non-skill reasons.
Operational and commercial impacts:
– Indian companies with global delivery models may push more work offshore or diversify staffing across countries to manage costs.
– On-site talent expectations for clients could lead to delays or higher prices, notably in areas requiring hands-on collaboration such as cloud migration, AI deployment, and cybersecurity.
Process, timelines, and possible checks
The proposal is moving through rulemaking at the Department of Homeland Security. Public comments from companies, universities, and advocacy groups will form part of the administrative record.
Why the rulemaking matters:
– It can shape technical details like who pays, timing of payment, and any exemptions.
– It creates a record that courts review if a lawsuit challenges the policy.
Roemer’s remarks suggest the outcome may also depend on trade negotiations. If trade agreement talks yield a package on market access, digital trade, or supply chain cooperation, both sides could trade concessions that include visa policy. This would mirror past episodes when tariffs or quotas were adjusted alongside immigration changes.
In Congress, lawmakers could:
– Hold hearings,
– Request data on projected revenue and usage,
– Propose bills to narrow or delay the measure.
If cases land in court, judges will examine whether the executive branch has authority to impose such a large one-time charge and whether proper procedures were followed.
Short-term guidance for workers and employers in India:
– The $100,000 one-time H-1B fee is not yet in force.
– It would target new entrants in the next cap season if finalized, not renewals or current visa holders.
– Companies planning new petitions should:
– Monitor updates from the U.S. Department of Homeland Security and India’s Ministry of External Affairs,
– Consider adjusting hiring timelines while the outcome remains uncertain.
What to watch next
Officials in both capitals acknowledge the policy’s reach. Indian leaders stress that skilled talent mobility has strengthened both economies, and that sudden cost spikes can choke off growth. U.S. officials say they want to protect current workers and narrow uncertainty, even as they pursue changes aligned with broader goals.
The coming weeks will test whether quiet diplomacy can soften the proposal. Possible outcomes and implications:
– If the fee is reshaped—lowered, phased, or targeted—employers may adapt more easily.
– If it stands as proposed, Indian firms will face budget planning challenges, and many candidates will likely delay or stop U.S. plans.
– Either path will influence how companies structure teams, where founders launch startups, and how students choose graduate programs with long-term career prospects in mind.
For readers tracking official guidance, the U.S. immigration agency maintains a public page on H-1B program requirements and cap-season updates. See the USCIS H-1B overview for authoritative information on eligibility, petitions, and process steps: USCIS: H-1B Specialty Occupations. While this page does not set the proposed H-1B fee, it provides context on how new petitions normally work and where formal updates will appear during rulemaking.
Three clear points from official statements:
– The proposed $100,000 fee is a one-time charge tied to new H-1B petitions.
– No retroactive charges would apply to existing H-1B holders or those reentering on current status.
– The fee would not apply to renewals, only to new entrants in the upcoming lottery cycle if enacted.
Roemer’s bottom line reflects the mood in Delhi and Washington: the fee is a marker of a broader effort to tighten employment immigration under President Trump’s policy approach, but it is not beyond revision. With high-level meetings underway and the rule still in draft form, the final shape will depend on the mix of trade agreement incentives, regulatory feedback, and legal review.
Indian professionals who built careers bridging both markets are watching closely. Many came as students, advanced to specialized roles, and helped create companies and jobs on both sides of the ocean. Whether this proposal shifts course will say a great deal about where the world’s two largest democracies want their tech and talent partnership to go next.
This Article in a Nutshell
U.S. policymakers have proposed a $100,000 one-time fee for new H-1B petitions, prompting industry backlash and diplomatic engagement with India. Officials clarified the charge would not apply to renewals, existing H-1B holders, or retroactive cases; it targets new entrants in the next lottery cycle if finalized. Former U.S. Ambassador Tim Roemer suggested trade negotiations with India could reopen talks and lead to concessions. The Department of Homeland Security has initiated rulemaking and a public comment period, leaving room for revision. The proposal’s fate may hinge on diplomacy, litigation, or Congressional action. Indian tech firms, students, and families face potential cost increases, hiring changes, and shifts in mobility and innovation partnerships if the fee remains as proposed.
