The U.S. has announced a massive $100,000 fee for new H-1B visa applications, effective September 21, 2025. This one-time fee applies only to new petitions, not to renewals or existing holders. While the government says the move will protect U.S. jobs and wages, the financial and economic impact is already raising concerns worldwide.
For U.S. companies, the cost of hiring skilled foreign workers has suddenly skyrocketed. Sponsoring just 10 new H-1B employees now adds $1 million in extra fees. Startups and mid-sized firms will find it harder to absorb this cost compared to tech giants. Many businesses may cut down on sponsorships, prioritize American hires, or shift more projects offshore. While the U.S. government could earn billions in fee revenue, innovation and competitiveness may take a hit if global talent inflow slows.
For India, the country most reliant on the H-1B route, the short-term pain will be significant. IT services firms like Infosys, TCS, and Wipro send thousands of engineers to the U.S. every year, and the new cost will hurt profit margins and reduce onsite deployments. However, this could accelerate a shift toward remote work and offshore delivery from India. In the long run, India may actually gain from a “brain gain,” as more skilled workers choose to stay and contribute to domestic startups and R&D instead of moving abroad.
Overall, the H-1B visa fee hike is set to reshape the economics of global hiring. While the U.S. aims to safeguard local jobs, the policy risks reducing access to high-skilled talent and pushing companies to expand outside America. For India, the disruption could open new opportunities, but the transition will be challenging for IT exporters and workers hoping to build careers in the U.S.
FLASHNUGGET Insight: We believe the $100,000 H-1B visa fee could reshape global hiring. While U.S. firms face higher costs, India may see a surprising brain gain and stronger domestic innovation.