Former advisor to ex-US President Joe Biden, Ajay Bhutoria, has described the Trump administration’s decision to impose a USD 100,000 annual fee on H-1B visas as a “bold step” aimed at uplifting senior citizens, while cautioning that the move could pose hiring challenges for startups.
Bhutoria suggested that while the policy may create more opportunities for U.S. senior IT professionals and new graduates, targeted exemptions are needed to ensure that innovation and competitiveness in the tech sector are not compromised.
“This USD 100,000 H-1B fee, effective September 21, 2025, could reduce reliance on lower-cost foreign labor and ensure fair wages for American talent, but startups may face hiring challenges. A balanced approach with exemptions is essential to keep our tech edge strong,” he told ANI.
Meanwhile, Khawnderao of the Foundation of India and Indian Diaspora Studies (FIIDS) termed the policy “very unfortunate,” warning of a “huge negative impact” on the U.S. tech industry. He argued that the steep fee would worsen talent shortages, especially for smaller tech firms and startups already struggling under the combined pressures of AI disruption and trade tariffs.
The Trump administration announced the measure on Friday, with Commerce Secretary Howard Lutnick describing it as a deliberate strategy to curb reliance on lower-skilled training roles while prioritising highly skilled workers.
The new fee represents a dramatic jump from current H-1B processing costs of just a few thousand dollars. It applies to all H-1B positions regardless of salary or skill level, making the programme financially viable only for high-value roles.
Industry experts warn that the move could particularly affect Indian IT giants like Infosys, TCS, and Wipro, which have long relied on the H-1B programme to bring junior and mid-level engineers to the U.S. for client projects and training.