The H-1B Visa Fee Hike: Myths vs Reality

 

The H-1B Visa Fee Hike: Myths vs Reality

By: S.N. VERMA

The recent announcement by the U.S. administration regarding a sharp hike in H-1B visa fees has sparked confusion, panic, and speculation—especially in India, which accounts for the largest share of H-1B professionals. On September 19, 2025, President Donald Trump signed a proclamation mandating a US$100,000 fee for new H-1B visa petitions.

Initial reports suggested that this fee was annual and would apply even to existing visa holders and renewals, raising fears among Indian tech workers, students, and companies. Some H-1B holders even rushed to advance travel plans to avoid being caught in the new regime.

However, subsequent clarifications by the White House have helped to separate fact from rumor. Let us cut through the confusion with a clear Myths vs Reality guide.

Myth 1: The $100,000 is an annual fee

Reality: It is a one-time charge. The fee applies only once per new H-1B petition filed on or after September 21, 2025. It is not recurring every year.

Illustration: If a U.S. company hires a software engineer from Bengaluru on H-1B in October 2025, it must pay $100,000 at the time of filing. But that same employee’s extension three years later will not attract this fee.

Myth 2: Existing H-1B holders and renewals must also pay

Reality: The hike does not apply to current H-1B visa holders or to renewals of visas already issued before September 21, 2025.

Illustration: An Indian IT professional already working in Texas on H-1B can continue and even renew her visa in 2026 without her employer paying the $100,000 fee.

Myth 3: Employees must bear this cost

Reality: Under U.S. law, the employer (sponsor) bears the cost of filing. Companies cannot legally transfer the burden of the petition fee to employees.

Illustration: If a California startup wants to hire an Indian data scientist in 2026, it is the startup—not the employee—that must pay the $100,000.

Myth 4: Travel abroad triggers the fee for existing holders

Reality: H-1B professionals already holding a valid visa can travel in and out of the U.S. freely without incurring the new fee.

Illustration: An Indian H-1B worker visiting family in Delhi during Diwali can return to the U.S. on the same visa without her employer paying again.

Myth 5: The fee hike is permanent

Reality: The proclamation sets the fee hike for one year—from September 21, 2025, to September 21, 2026. However, U.S. Govt  has the discretion to extend it further.

Implications for India

Large Indian IT firms (Infosys, TCS, Wipro) will still sponsor H-1B professionals, but the huge cost may reduce overall intake.

Smaller companies and startups may scale back or avoid sponsorship due to financial strain.

Indian students in the U.S. on OPT hoping to transition to H-1B may face fewer opportunities, as employers will weigh the cost.

U.S. tech giants may continue sponsorships but will be more selective, limiting the number of petitions filed.

Conclusion

The headline figure of a $100,000 H-1B fee caused shockwaves, but much of the panic stemmed from myths and half-truths. The reality is that this is a one-time, employer-paid fee applicable only to new petitions filed after September 21, 2025. Existing H-1B visa holders and renewals remain unaffected.

For Indian aspirants, this means opportunities are unlikely to disappear, but competition may intensify as employers—especially smaller ones—rethink their hiring strategies. In the coming months, it will be critical to watch how U.S. agencies implement the proclamation, whether legal challenges arise, and if the policy is extended beyond its initial one-year term.