The current major issue with the H-1B visa program is a significant policy change announced in September 2025 by the U.S. administration, which imposes a one-time $100,000 fee on new H-1B visa applications.
This fee applies only to new applicants filing petitions after September 21, 2025, including the 2026 lottery, and not to existing visa holders or those who participated in prior lotteries. 

About H-1B

The H-1B is a non-immigrant visa that allows U.S. employers to temporarily hire foreign workers in "specialty occupations". It is highly sought after, especially in the technology and engineering sectors, and allows for dual intent—meaning the holder can pursue permanent residency. 

Eligibility requirements

The eligibility criteria for an H-1B visa apply to both the employer and the employee. 

For the employee:

• Specialty occupation: The job must qualify as a specialty occupation, which requires a body of highly specialized knowledge.
• Education: The employee must hold a bachelor's degree or its equivalent in a relevant field, or possess a state license. Equivalent work experience may also be considered.
• Job offer: The applicant must have a job offer from a U.S. employer willing to act as a sponsor. 

For the employer:

• Business legitimacy: The employer must be a legitimate U.S.-based entity.
• Prevailing wage: Employers must attest they will pay the H-1B worker at least the prevailing wage for the occupation in the area of employment.
• Labor Condition Application (LCA): A certified LCA is required from the Department of Labor before filing the H-1B petition. 

 
The application process

• The process involves several steps managed by USCIS and starts with employer registration. The process includes electronic registration and a lottery for cap-subject visas, filing a Labor Condition Application (LCA), and if selected and the LCA is certified, the employer files Form I-129 with USCIS. An optional fee can expedite USCIS review, and consular processing may be required after petition approval. 

Annual visa cap

• There is an annual cap on new H-1B visas. This includes a regular cap and an additional cap for those with advanced U.S. degrees. Certain employers are exempt from the cap. 

Length of stay and extensions

• The initial visa is for up to three years and can be extended for another three years, totaling a maximum of six. Extensions beyond six years are possible for those pursuing permanent residency. 

Changes in employment

• H-1B holders can change employers, and work may begin once the new employer files a petition. Laid-off H-1B workers have a grace period to find new employment or leave the country. 

Dependents

• Spouses and unmarried children under 21 can obtain H-4 visas, and some H-4 spouses may apply for work authorization. 

Notable recent developments

• Recent updates include an increased registration fee for FY 2026, a new beneficiary-centric lottery system, and upcoming changes in January 2025 to simplify processes and clarify eligibility. 

New H-1B Rules

The new H-1B rules effective September 21, 2025, introduce a steep $100,000 fee for new H-1B visa petitions, mainly targeting new applicants and not affecting current H-1B visa holders or those who filed petitions before the deadline. This fee aims to prioritize high-paid, high-skilled positions and reduce the number of new applications.
Key points of the new H-1B rules:

• The $100,000 fee applies only to new petitions filed after 12:01 am EDT on September 21, 2025, including the 2026 lottery, not to existing visa holders or renewals.
• Current H-1B workers and those re-entering the US do not have to pay the fee.
• The rules raise prevailing wage levels and modify the lottery system to prioritize more skilled, higher-compensation jobs, reducing entry-level approvals.
• Increased enforcement and compliance measures include more site visits and scrutiny of employers, especially those placing H-1B workers at third-party worksites.
• The changes seek to enhance program integrity by limiting duplicate lottery entries and preventing fraud.
• The fee and stricter rules may impact startups, mid-sized businesses, and certain large companies by increasing the cost and compliance burden for hiring H-1B workers.
• These changes followed a presidential proclamation and have generated concern among tech companies and H-1B visa holders about the impact on skilled foreign workers and US innovation ecosystems.

Consequences of New H-1B Rules

Significant new H-1B visa rules introduced in September 2025 by the Trump administration include a substantial one-time fee of $100,000 for new visa petitions and a move toward a wage-based selection process instead of a lottery
These changes have widespread consequences for U.S. companies, foreign workers, and the global technology landscape. 

Immediate consequences for new H-1B applicants

• Massive cost increase: The one-time $100,000 fee for new H-1B visas replaces the previous administrative fees, which ranged from approximately $2,000 to $5,000. This increase dramatically raises the cost for companies to hire new foreign talent.
• Higher entry wages required: The new regulations prioritize higher-paid applicants. The Department of Labor is instructed to revise prevailing wage levels, and the Department of Homeland Security will use a wage-based system for selection, effectively ending the random lottery for new applicants.
• Panic and uncertainty: The new rules caused widespread confusion and panic among current H-1B holders and prospective applicants. While officials later clarified the new rules do not apply to existing visa holders or renewals, the initial uncertainty led many to cancel travel plans or rush back to the U.S.. 

Consequences for U.S. companies

• Recruitment strategy shift: The exorbitant costs will make it less economically viable for many companies, especially startups and small businesses, to sponsor foreign workers. This is expected to push employers toward focusing on a narrow band of elite, high-compensation roles for H-1B applicants.
• More offshoring: Many U.S. companies and Indian IT service providers may accelerate their shift toward offshore and remote work models. The financial burden of the new visa fees will likely make it more economical to expand operations in other countries, such as India, rather than bringing employees to the U.S..
• Potential innovation slowdown: Concerns have been raised that restricting access to foreign talent could negatively impact U.S. innovation and technological competitiveness. However, other experts believe the U.S. market has proven resilient to similar shifts in the past.
• Legal challenges expected: Immigration attorneys anticipate that the new policies will face legal challenges, arguing that the regulations were not implemented through the proper administrative procedures. 

Consequences for foreign workers

• Reduced opportunities for entry-level workers: The new wage-based selection process will make it extremely difficult for recent graduates and less experienced workers to secure an H-1B visa, as they will be outbid by applicants with higher salary offers.
• Discouragement of U.S. higher education: Experts predict that the higher barriers to obtaining an H-1B visa will discourage foreign students, particularly those from India and China, from pursuing higher education in the U.S. The prospect of not being able to stay and work after graduation makes the investment less attractive.
• Reverse brain drain: Some analysts suggest the rules may inadvertently accelerate a "reverse brain drain," with more skilled talent returning to or staying in their home countries. This could boost technological innovation and growth in countries like India. 

Consequences for the global technology landscape

• Increased competition for talent: Other countries are expected to benefit from the U.S. policy shift. Global tech hubs in Europe, the Middle East, and Asia may gain a competitive advantage in attracting top international talent that is now priced out of the American market.
• Shift in innovation hubs: With more skilled talent and investment flowing to tech hubs outside the U.S., there could be a long-term rebalancing of where technological innovation and growth occur globally. 
• Other related updates
• Anti-fraud measures: In addition to the fee increase, the Department of Labor has launched "Project Firewall" to target employers who abuse the H-1B program through fraudulent practices.
• Beneficiary-centric selection: Earlier in 2025, USCIS implemented a "beneficiary-centric" selection process to combat fraudulent registrations. This change, which limits registrants to one entry per individual, has been effective at reducing bulk applications. 

H-1B fee affect Indian IT professionals

The $100,000 H-1B fee will have a significant impact on Indian IT professionals in several ways:

• The fee hike applies only to new H-1B visa applicants outside the U.S., not to existing visa holders or those renewing their visas. This means current Indian IT professionals in the U.S. are not immediately affected, but future new applicants will face much higher costs.
• Indian IT companies, which are among the largest beneficiaries of the H-1B program, will face increased expenses for sending skilled professionals to the U.S. For example, in 2025 Tata Consultancy Services received over 5,500 H-1B approvals. The hike could reduce the number of new visas granted to Indian IT workers, affecting thousands of professionals and potentially slowing career growth and international experience opportunities.
• The fee increase from $2,000-$5,000 to $100,000 annually is extremely steep, potentially making it prohibitive for startups, small businesses, and even large Indian IT firms to sponsor new employees for H-1B visas. This could lead firms to reconsider U.S. operations or hire more locally, impacting Indian tech professionals' prospects.
• The fee aims to discourage "abuse" of the H-1B program, making the U.S. admit only "extraordinary people at the very top," which may narrow the opportunities for mid-level Indian tech workers looking to work in the U.S..
• Immediate concerns have been raised about humanitarian consequences and family disruptions for Indian skilled professionals due to potential visa denials or difficulties, causing uncertainty and stress.
• Industry advisories warn H-1B employees and dependents outside the U.S. not to delay travel back to the U.S. before the fee enforcement date to avoid getting stranded, adding to urgency and anxiety among Indian IT workers and their families.
• In summary, while the fee does not impact current Indian H-1B holders, it will make it much harder and more expensive for new Indian IT professionals to obtain such visas, likely restricting talent mobility and career opportunities in the U.S. tech sector for Indian workers.

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