A bipartisan group of seven U.S. lawmakers has called on President Donald Trump and Commerce Secretary Howard Lutnick to reconsider the newly proposed $100,000 fee on fresh H-1B visa applications, citing concerns that the levy could undermine innovation, hinder startups, and prompt skilled foreign workers to seek opportunities elsewhere.
In a joint letter sent last week, the legislators—including Suhas Subramanyam, Sam T. Liccardo, Jay Obernolte, María Elvira Salazar, Don Bacon, and Greg Stanton—warned that the fee, introduced in September 2025, would not effectively prevent misuse of the H-1B programme but could disproportionately affect small and mid-sized firms that rely on global talent to grow and compete.
“While large tech companies may absorb the cost, smaller businesses and start-ups risk being priced out of hiring the expertise they need,” the letter notes, highlighting the potential shift of talent to countries such as Canada and Australia, which offer more favourable immigration policies.
Impact on Indian Professionals
India remains the largest source of H-1B visa holders, with thousands of Indian IT and engineering professionals depending on the programme for employment in the United States. Experts say the proposed fee could limit opportunities for Indian applicants, potentially affecting the Indian IT services sector that is heavily integrated with the U.S. market.
Industry analysts have suggested that the measure may slow the inflow of skilled professionals, create recruitment bottlenecks, and encourage Indian talent to explore other international markets.
Lawmakers’ Recommendations
To address these challenges, the Congress members outlined several measures to safeguard the programme’s integrity while easing access for legitimate applicants:
- Stricter Oversight: Strengthening rules to prevent outsourcing companies from exploiting H-1B visas at the expense of domestic workers.
- Simplified Portability: Allowing H-1B visa holders more flexibility to switch employers without bureaucratic delays.
- Updated Wage Tiers: Revising minimum wage requirements to reflect market conditions and ensure fair compensation.
- Balanced Fee Structure: Aligning visa fees with administrative costs rather than imposing prohibitive charges that could discourage legitimate applicants.
The lawmakers emphasised that the H-1B programme is crucial to maintaining the United States’ competitive edge in technology and research. “This is about preserving America’s leadership in innovation while ensuring fair access for global talent,” the letter states.
Global Implications
Observers say the controversy underscores the delicate balance between immigration policy and economic competitiveness. A steep fee could dissuade skilled workers from pursuing U.S. opportunities, potentially impacting startups, tech innovation, and bilateral collaborations.
As the debate unfolds, stakeholders from industry and academia are closely monitoring developments, particularly the implications for Indian professionals who constitute a significant portion of the H-1B workforce.
Also read: Viksit Workforce for a Viksit Bharat
Do Follow: The Mainstream formerly known as CIO News LinkedIn Account | The Mainstream formerly known as CIO News Facebook | The Mainstream formerly known as CIO News Youtube | The Mainstream formerly known as CIO News Twitter |The Mainstream formerly known as CIO News Whatsapp Channel | The Mainstream formerly known as CIO News Instagram
About us:
The Mainstream formerly known as CIO News is a premier platform dedicated to delivering latest news, updates, and insights from the tech industry. With its strong foundation of intellectual property and thought leadership, the platform is well-positioned to stay ahead of the curve and lead conversations about how technology shapes our world. From its early days as CIO News to its rebranding as The Mainstream on November 28, 2024, it has been expanding its global reach, targeting key markets in the Middle East & Africa, ASEAN, the USA, and the UK. The Mainstream is a vision to put technology at the center of every conversation, inspiring professionals and organizations to embrace the future of tech.
