Most H-1B Visa Holders Earn Less Than Their Visa Fees

US President Donald Trump has introduced significant changes to the H1B visa programme, which could severely impact India. The new $100,000 fee for H1B visas is higher than the median annual salary of new visa holders and exceeds 80% of the average salary for all H1B workers. This change poses a substantial challenge to Indo-US relations, potentially more damaging than the 50% tariffs on Indian exports.

The Financial Times explains that the six-figure application fee, as stated by US Secretary of Commerce Howard Lutnick, requires employers to pay annually. Previously, the government charged $215 for lottery registration and an additional $780 for sponsoring applicants. A White House executive order mentions this as an application fee without specifying an annual payment.

Impact on India and Other Countries

India has historically been the largest beneficiary of H1B visas. In 2024, Indians received 71% of the 399,395 approved visas, while China followed with only 11.7%. The new fee structure will likely affect India more than any other country. The cost is now comparable to or even exceeds a full year's salary for many H1B employees.

The Trump administration has also introduced a gold-card visa scheme. Individuals and corporations can pay $1 million or $2 million for a US visa, equating to approximately ₹9 crore and ₹18 crore in Indian currency. This initiative adds another layer of complexity to obtaining US visas.

Potential Consequences of New Visa Fees

The recent announcement suggests that these changes might effectively end the H1B programme. With fees surpassing the annual salaries of most visa holders, applications may decline significantly. For first-time employment seekers under this visa category, the cost now exceeds their potential earnings.

A report from US Citizenship and Immigration Services (USCIS) in 2025 highlighted that the median wage for initial H1B employment was $97,000. Continuing visas had a slightly higher median wage of $132,000, averaging around $120,000 overall. With fees exceeding these figures, it's unlikely many will apply.

Trump's decision could have far-reaching implications beyond just financial burdens. It may strain diplomatic ties between India and the US further. As one of India's key economic partners, such policies could lead to broader geopolitical tensions.

This development marks a significant shift in US immigration policy under Trump's leadership. While he often revises his decisions, this move indicates a potential end to a programme that has long benefited skilled workers worldwide.