No US Entry Without $100K: Trump’s Disruptive H-1B Visa Order

In a stunning escalation, US President Donald Trump has signed a proclamation imposing an annual USD 100,000 (over Rs 88 lakh) fee for every H-1B visa holder. The rule covers both new applicants and current visa holders, making it one of the steepest changes to the program in decades.

Beginning Sunday, September 21, any H-1B visa holders trying to enter the US will be denied entry unless their employer has paid the new fee upfront. The proclamation makes it clear that non-payment means immediate refusal at the border.

Travel Ban and Fee Requirement

The new measure takes effect at 12:01 am EDT (9:30 am IST) on Sunday. From that moment, H-1B holders will be allowed into the US only if their employers pay the $100,000 annual fee. This is a massive leap from the previous administrative fee of about $1,500.

New H-1B applications and extensions will also require the same payment to be processed, with renewals demanding another $100,000 every year. The proclamation currently sets the restriction for 12 months, but federal immigration agencies could recommend extending it beyond 2026.

Trump’s Reasoning: “Curbing Abuse”

The White House says the change is aimed at ending what it calls ‘systemic abuse” of the H-1B program, often criticised for displacing American workers.

Administration officials claim that forcing employers to pay such a steep amount will reduce dependency on foreign workers and encourage hiring locally.

Commerce Secretary Howard Lutnick said the cost will apply for each year of the H-1B’s three-year duration but admitted that “details are still being considered.”

Impact on Indian Workers

Indians are by far the largest group affected. According to the US Citizenship and Immigration Services (USCIS), nearly 72 per cent of the 400,000 H-1B visas issued in FY 2023 went to Indian nationals.

For many, the new fee is unaffordable, especially for mid-sized companies and startups that depend heavily on Indian IT and engineering talent. Several Big Tech companies have reportedly warned their employees not to leave the US before Sunday, fearing they may not be able to return.

Indian Government’s Response

India’s Ministry of External Affairs issued a carefully worded statement, saying it is studying the implications of the move. Officials stressed that Indian and US industries both have a deep stake in innovation and economic growth and urged Washington to keep mutual benefits in mind.

The government also highlighted the humanitarian fallout, pointing out the potential disruption for families. It expressed hope that US authorities would find ways to address these issues more sensitively.

What Comes Next

The move is expected to trigger a storm of debate in Washington and beyond. US companies that rely on skilled foreign workers, particularly in tech and healthcare, are already voicing concerns about higher costs and talent shortages.

For Indian professionals, the uncertainty is immediate and personal. With the deadline just hours away, H-1B workers face a stark choice: stay in the US or risk being locked out while employers scramble to cover the massive new fee.