Comment by Riaz Haq 4 hours ago

Trump’s $100,000 H-1B visa fee spares Indian students in the US but raises costs for IT cos' offshore transfers - The Economic Times

https://m.economictimes.com/nri/latest-updates/trumps-100000-h-1b-v...


The Trump administration’s decision to exempt individuals already in the US, including foreign students, from paying the $100,000 H-1B visa fee has brought major relief for American employers, and universities. Many US-based companies rely on foreign graduates, especially those on F1 visas, to fill high-skilled roles. The exemption ensures that firms hiring such talent will not face additional costs when sponsoring their work visas.

The clarification is expected to reduce fears among students who have been scrambling for alternate study abroad destinations after Trump's policy see-saws, allowing them to reconsider the US.

Fee targets overseas applicants, not those already in the US
The clarification from the US Citizenship and Immigration Services (USCIS) — following President Donald Trump’s September 19 proclamation — confirmed that the new $100,000 H-1B fee applies only to new petitions filed for individuals outside the United States. It does not apply to amendments, changes of status, or extensions for workers and students already living in the country.

The rule, effective from September 21, 2025, requires employers to provide proof of payment through pay.gov. Exceptions will be permitted only in “extraordinarily rare” cases where the Secretary of Homeland Security determines that the applicant’s presence in the US serves the national interest and that no American worker can fill the role.

For Indian students already studying or working in the US under F1 visas, this clarification is a significant relief. It allows them to seek employment with American companies and startups without the additional $100,000 H-1B burden for employers.

Indian IT firms face higher costs but rely less on H-1B transfers
For Indian IT services companies, the impact of the rule is limited but financially important. These firms have historically transferred employees from India to the US on H-1B visas, and such transfers will now incur the $100,000 fee. However, over the past several years, leading firms like Infosys, Wipro, and TCS have reduced their dependence on overseas transfers.

Since the pandemic and earlier policy tightening during Trump’s first term, Indian IT firms have increased local hiring and established near-shore delivery centers in markets like Latin America and Canada. Today, nearly 80% of Wipro’s US workforce comprises local employees. Infosys CEO Salil Parekh has noted that only a small share of its staff now use the company’s immigration services, while TCS has said it sends only about 500 people annually on H-1B visas despite filing a larger number of petitions.

Experts see shift toward value-based hiring and local talent
Phil Fersht, CEO of IT research firm HFS Research, told TOI's Veena Mani & Shilpa Phadnis that the new rules signal a clear shift from “volume-driven visas to value-driven visas.” He added, “The message is clear: the US wants fewer imported coders and more onshore AI engineers and domain experts,” pointing out that the rule pushes IT services companies to invest more in building local capabilities.

Vivek Wadhwa, CEO of Vionix Biosciences and a former fellow at Harvard Law School and Carnegie Mellon University, described the policy as “a Trump taco, noise that scared everyone.”

“It got Trump's base very excited but he misled them as he often does, he made a lot of noise and really didn't do anything. It created a big panic for a month and as it turns out there was nothing to worry about,” told TOI.

Stephen Yale-Loehr, a retired professor of immigration law at Cornell Law School, said the impact of the new rule will be limited. “Only a small group of applicants will be affected,” he noted, adding that most H-1B workers already live and work in the US.

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