Bhutoria suggested “limited exclusions” to maintain the strength of the US technological industry and cautioned that this move would pose difficulties for start-ups.
Trump’s Bold Visa Move
The imposition of an annual cost of USD 100,000 on H-1B visas is a “bold move” by the Trump administration to elevate older Americans, according to Ajay Bhutoria, a former counselor to former US President Joe Biden.
Bhutoria suggested “limited exclusions” to maintain the strength of the US technological industry and cautioned that this move would pose difficulties for start-ups.
New H-1B Fee
“Starting September 21, 2025, the new USD 100,000 H-1B fee is positioned as a bold move to reduce reliance on lower-cost foreign labor. The measure aims to create fairer wages and greater opportunities for senior U.S. IT professionals and recent graduates, while still promoting innovation. However, it may pose hiring challenges for startups, making targeted exemptions vital to maintain America’s competitive edge in technology,” he noted.
The Foundation of India and Indian Diaspora Studies’ (FIIDS) Khawnderao also called the decision “unfortunate” and said it might have a “very severe” effect on the US IT sector.
High Cost Policy Criticism
“The $100k charge for H1Bs is a really bad policy that will hurt business, especially the software and IT sector, and US-educated STEM personnel, which is already having a hard time because of tariffs and the negative effects of AI. We must raise awareness of the detrimental effects of a lack of talent, particularly for startups and smaller digital firms, which hinder their ability to compete and create,” he added.
The huge increase in H-1B visa costs proposed by the Trump administration—a USD 100,000 yearly fee—will significantly change how American businesses recruit qualified foreign workers, especially for Indian IT experts, who make up the biggest beneficiary category.
Targeting Lower-Skilled Jobs
During a news conference on Friday, Commerce Secretary Howard Lutnick announced the revisions, characterizing the price increase as a calculated move to remove what the government views as lower-skilled training jobs while maintaining chances for highly qualified individuals.
The existing H-1B processing fees, which usually total a few thousand dollars, have dramatically increased in comparison to the new USD 100,000 yearly price. Businesses will pay this price in addition to their current vetting fees, and the administration will still have the option of collecting the whole amount up front or on a yearly basis.
Fee Applies To All
The charge is applicable to all H-1B jobs, regardless of skill level or pay level, so only jobs that warrant the high expense may make the program profitable.
This shift may have a big effect on Indian IT services firms like Infosys, TCS, and Wipro, who have long sent junior and mid-level engineers to the US on H-1B visas for client projects and skill development.