Tiwari Slams Modi Over $100,000 H-1B Fee Rise and Policy Clarity

(INDIA) India’s political and tech circles reacted sharply after the United States 🇺🇸 imposed a new $100,000 annual H-1B visa fee on each fresh application, effective September 21, 2025, under an executive order signed by President Trump. The abrupt measure, announced in August and enforced with a one-day implementation window, has triggered a storm in New Delhi and across the Indian IT sector. Congress MP Pramod Tiwari accused the government of weak diplomacy, saying the move strikes at India’s brightest professionals and exposes failures in Modi foreign policy.

The White House framed the fee as a step to protect domestic jobs, arguing that companies using large numbers of H-1B workers have laid off thousands of Americans and paid lower wages to foreign hires. India’s Ministry of External Affairs (MEA) said it is assessing the impact and warned of disruptions to families and the Indian technology industry. Industry body Nasscom called the timeline unworkable and flagged deep business disruption. Former diplomats, including KP Fabian, described the change as “unjustified,” while noting it applies only to new applicants, not existing H-1B holders.

Policy changes — what was announced

• The new H-1B visa fee applies to all new petitions filed on or after September 21, 2025, including employer-sponsored transfers.
• The fee is annual, meaning each new hire on H-1B status becomes significantly more expensive for employers.
• The rule does not retroactively affect current visa holders, but the one-day transition left minimal planning room for pending filings and ongoing projects.
• Agencies have not published a separate rulemaking; officials say operational guidance will follow the executive order. For program basics, consult the USCIS page: https://www.uscis.gov/working-in-the-united-states/temporary-workers/h-1b-specialty-occupations.

The one-day implementation window amplified confusion and risk, leaving employers and applicants scrambling to adjust.

Legal experts expect U.S. court challenges to the executive order, and some observers predict narrow exemptions might be considered for national-interest cases. For now, companies should assume the fee applies to all new filings and budget accordingly.

Political and diplomatic fallout in India

Political response has been intense:

• Pramod Tiwari urged the government to “fix foreign policy and speak plainly” with Washington, calling for measures to protect Indian talent and business.
• Mallikarjun Kharge labelled the change a “return gift” from President Trump to Prime Minister Narendra Modi, citing other U.S. actions seen as unfriendly.
• Arvind Kejriwal called the price tag “humiliating” for Indian professionals.
• Revanth Reddy (Telangana CM) described it as “totally unacceptable” and urged urgent intervention.
• Opposition figures such as Asaduddin Owaisi warned of possible drops in remittances and damage to the services economy.

Indian officials say they are in touch with U.S. counterparts and the private sector; the MEA is preparing a detailed impact analysis.

Impact on applicants, employers, and families

The fee changes economic calculations and personal plans alike.

Key employer effects:
– All new H-1B petitions filed on or after September 21, 2025, must include the $100,000 annual fee per application.
– Expect increased scrutiny on compliance (wage levels, worksite details).
– Firms may need to reset budgets and timelines to account for the recurring annual cost.
– Contingency options include: local U.S. hiring, remote work from India, or phased staffing.

Key worker and family concerns:
– Current H-1B holders are not retroactively charged, but transfers and new filings do trigger the fee.
– Those with pending moves, role changes, or employer switches face uncertainty if sponsors cannot absorb the cost.
– Dependents—many with school-age children—may confront sudden decisions on relocation, housing, and work authorization.
– Legal relief (hardship or national-interest exemptions) might be possible but unclear and likely limited.

Operational stresses:
– Some large U.S. tech firms reportedly advised employees to return before the effective date, increasing scramble across global HR teams.
– Nasscom warned that on-site work serving U.S. clients could be seriously disrupted, threatening continuity for outsourcing contracts and SME consultancies.
– Startups with thin margins are particularly exposed.

Broader economic and strategic implications

• Indian nationals make up a large share of H-1B recipients; a $100,000 yearly charge could shut smaller firms and startups out of the U.S. market.
• Analysts argue the annual structure changes employer behavior more than past one-time surcharges. According to VisaVerge.com, it alters long-term cost models and may:
  1. Limit internal transfers.
  2. Delay promotions tied to role changes.
  3. Shift work back to offshore teams in India.
• Businesses may adapt by hiring more locally in the U.S. or expanding India-based teams to serve clients remotely. However, the shock will be hardest on smaller players and state-side tech hubs that rely on rapid hiring for areas like AI, cloud, and chip design.

Legal, industry, and government responses

• Business groups are preparing legal and lobbying campaigns. Potential legal angles include:
  • Whether an executive order can impose an annual fee of this scale without fresh legislation.
  • Whether the measure is arbitrary or violates administrative law procedures.

• Trade associations may push for targeted exemptions (public interest, national security, hardship).
• Indian officials will press U.S. counterparts for relief, stressing mutual economic benefits of skilled mobility and the risk of chilling investment.

Practical near-term steps

For workers, employers, and families:
1. Workers: Check with employers about pending filings and whether start dates or roles need adjustments.
2. Employers: Audit all planned H-1B activity and model the new annual cost across project lifecycles.
3. Families: Organize immigration records and monitor MEA advisories for consular support and guidance.
4. Companies with U.S. clients: Update contracts to reflect potential staffing and cost changes, and prepare contingency staffing plans.

Takeaway

The immediate question for thousands of Indian professionals is stark: can they still build a life in the United States under the burden of a $100,000 annual H-1B visa fee, or must many now look homeward?

• If courts issue stays, collections may be temporarily paused.
• If not, business models built on cross-border teams will be tested, and both governments face the challenge of balancing domestic labor concerns with high-skill mobility that has fueled bilateral investment and growth.