Nasscom Says $100,000 H-1B Visa fee to disrupt US business of Indian IT firms
The one-day deadline for implementation of new H-1B visa rules creates considerable uncertainty for businesses and individuals alike, Nasscom says.
The $100,000 H1-B Visa fees is set to disrupt business continuity of Indian IT firms in their biggest market, Nasscom said on Saturday, even as Donald Trump ushered in the gilded age of US immigration policy.
“While we are reviewing the finer details of the order, adjustments of this nature can potentially have ripple effects on US innovation ecosystem and the wider job economy,” the industry body representing India’s $283-billion outsourcing industry said. “India’s IT services companies will also be impacted as business continuity will be disrupted for onshore projects… Companies will work closely with clients to adapt and manage transitions.”
The timeline for implementation (for anyone entering the US after 12:01 am on 21 September) of the H-1B visa rules is also a concern, Nasscom said.
“A one-day deadline creates considerable uncertainty for businesses and professionals across the world,” it said. “Policy changes of this scale are best introduced with adequate transition periods, allowing organisations to plan effectively and minimise disruption.”
$100,000 US H-1B Visa Fee
On Friday, Trump announced that companies will have to pay the US government $100,000 in order to secure an H-1B visa for a foreign employee. The hike is on top of the current fees, which are quite modest at $2,000-5,000 at present.
Speaking to reporters at the White House, US Commerce Secretary Howard Lutnick said that the move would ensure US companies hire more American talent while sending less valuable foreign workers back to their home countries. Given that Indians account for over 70% of H-1B visa holders, these restrictions could prove damaging to the Indian diaspora in America.
The H-1B visa fee hike would apply from 21 September 2025 for a period of 12 months. After the initial period, the rule will expire unless extended.
Trump alleged “systemic abuse” of the H-1B visa system, particularly by IT outsourcing firms. The misuse of the H-1B visa program was a “national security threat”, he said.
That's so not correct, according to Nasscom.
“These (Indian IT) companies follow all necessary governance and compliance in the US for H-1B processes, pay the prevailing wages and contribute to the local economy via innovative partnerships with academia and startups,” Nasscom said. “The H-1B workers for these companies are by no means a threat to national security in the US.”
