The U.S. administration under President Donald Trump has proposed a six-figure fee for new H-1B visa petitions subject to the annual cap [1, 2].
This move targets the cost of deploying foreign professionals to the United States. Because Indian nationals comprise nearly 70% of issued H-1B visas [3], the policy would disproportionately affect the Indian IT workforce and the outsourcing models used by major firms.
Reports regarding the exact cost of the proposal vary. Some sources said the fee would be $100,000 [1], while others report a specific figure of $103,265 [2]. The proposal emerged in September 2026 as part of a broader effort to generate additional revenue and increase the financial burden on companies hiring from abroad [1, 2].
The administration said the measure aims to address concerns that the H-1B program is used to replace U.S. workers with lower-cost foreign labor [1, 2]. By raising the price of entry, the government intends to pressure the business model of Indian IT firms, such as TCS and Infosys, that rely heavily on these visas to staff U.S. projects [2].
Industry analysts said the fee represents a massive increase over current costs. In Indian media, the fee has been described as "1 lakh" [4], referring to the approximate $100,000 threshold. This shift would force companies to either absorb the cost, pass it on to clients, or pivot toward hiring domestic U.S. talent.
The proposal focuses specifically on petitions subject to the annual cap, meaning the highest-demand categories of skilled labor would be the most affected. This strategy is designed to make the deployment of foreign professionals less attractive compared to local hiring options [1, 2].
“Indian nationals comprise nearly 70% of issued H-1B visas”
This proposal signals a shift from regulatory hurdles to financial barriers in U.S. immigration policy. By introducing a fee of roughly $100,000 per petition, the administration is attempting to dismantle the economic incentive of the offshore-onshore IT model. If implemented, this would likely accelerate the 'localization' of IT services, forcing global firms to establish larger permanent workforces within the U.S. rather than relying on rotating foreign contractors.
