Various immigration groups and attorneys might be preparing court challenges, citing potential violations of due process and economic harm.
On the tail end of 19 September, Friday, US President Donald J. Trump suddenly signed a proclamation imposing a $100,000 fee on each new H1B visa petition that literally stunned the global technology sector, all H1B holders, and foreign students alike. Moreover, it was set to take effect within less than 36 hours at 12:01 a.m. EDT on September 21, 2025.
The order requires US employers to pay the fee to sponsor new high-skilled workers, and without proof of payment, H1B holders could be denied re-entry.
The suddenness and huge impact of the order caused immediate chaos among H1B holders, foreign students, and corporations. Big tech firms rushed out urgent memos urging employees abroad to return before the deadline, triggering a frantic scramble for flights. Weddings were postponed, fiancées stranded in Europe, and some travellers even deplaned at the last minute, delaying flights.
The ambiguity and weekend timing left many questioning the motive behind such a disruptive rollout, forcing the White House and DHS/USCIS to issue late-weekend clarifications that current H1B holders need not panic or rush back. Still, the proclamation left grey areas around H1B renewals, transfers to new employers, and F-1 or OPT students applying for H1B, keeping uncertainty high despite the reassurances.
The decision also reflects domestic political pressure, with hardline “America First” voices claiming—without evidence—that H1B workers displace Americans. In reality, these roles are new jobs US workers aren’t filling, must meet prevailing wage requirements, and often remain vacant even after domestic hiring efforts. They overlook clear data showing H1B tech immigrants file 25% of US patents, lead over half of billion-dollar startups, and fill critical AI, biotech, and cybersecurity gaps that keep America competitive and innovative.
The new $100,000 H1B fee carries massive financial consequences for US employers, especially big tech firms that hire thousands of skilled workers each year—a company bringing in 1,000 new hires would face an extra $100 million in costs. Even well-funded giants may find this hard to absorb, pushing many to outsource projects or hire remotely overseas, ironically accelerating the offshoring the policy claims to stop.
From my view in Silicon Valley—an ecosystem powered by tech immigrants—this is especially troubling. Instead of protecting American jobs, the fee risks discouraging investment, forcing startups to scale abroad, and ultimately costing US workers the opportunities that come from innovation-driven growth.
It’s no surprise that major companies are expected to quietly lobby for the policy to be reduced, repealed, or allowed to expire to stay competitive against fast-moving rivals like China.
The new $100,000 H1B fee threatens to shatter the American dream for thousands of foreign STEM professionals and students. With the average H1B salary around $150,000, the fee represents a crippling cost that will discourage companies from hiring and make sponsorship virtually impossible for startups and smaller employers.
For the 300,000 Indian students who collectively bring nearly $10 billion each year to US universities in tuition and living expenses, this move is especially devastating. Many pursue advanced degrees not only to gain world-class experience but also to repay education loans and build a career in the US. Now, that carefully planned path to opportunity—and the promise of contributing to America’s innovation economy—faces an abrupt and disheartening roadblock.
I am told that various immigration groups and attorneys might be preparing court challenges, citing potential violations of due process and economic harm. Considering the President used national emergency as a clause, we would like to see how it unfolds. The current proclamation is supposed to be for 12 months but may get extended. In my opinion, it would require a congressional mandate, for which the President would need to rush before the November 2026 mid-term election.
What makes this decision even more striking is its timing. Negotiations on the US-India trade deal are scheduled to begin in the coming weeks, and 70% of H1B visa holders are Indian nationals.
This raises a natural question: Is this a pressure tactic aimed at India?
While such a move could, in theory, be used as leverage, it seems this was already on the America First policy, just might have expedited the timing. Otherwise, it is unlikely that a US administration would issue a high-profile proclamation only to roll it back as part of a trade bargain. Nevertheless, the coincidence is difficult to ignore.
Many industry leaders and policy analysts—including myself and organizations I work with like FIIDS and GITPRO—agree that H1B and legal immigration reforms are needed to curb fraud, ensure fair wages, and move toward a merit-based process rather than a lottery. Minimum salary requirements have already risen to discourage low-wage sponsorships, but reform must be data-driven, not reactionary. Policies should protect US workers while still attracting global talent in sectors where domestic supply simply can’t meet demand.
For now, we wait to see whether courts, trade talks, or political deals will reshape this proclamation, which risks exporting jobs, strengthening competitors like Canada or China (which recently launched a “K visa” to lure talent), and straining US-India ties.
Ironically, while Indian students and professionals may see their American dream disrupted, India itself could benefit if it responds with stronger startup funding, research hubs, and advanced tech infrastructure to retain and nurture this talent.
Khanderao Kand is a Silicon Valley-based technologist, startup adviser and policy strategist, chief of policy analysis and strategy for FIIDS (Foundation for India and Indian Diaspora Studies), and president of Global Indian Technology Professionals Association (GITPRO).
