Debasis Mohapatra
Bengaluru, 20 September 2025
The Trump administration’s decision to impose a $100,000 entry fee on H1B visa holders is likely to make it difficult for Indian IT services providers and even US technology giants to send Indian technology professionals to the US.
According to the proclamation of Trump administration, the new entry fee rule will be applicable from September 21, 2025.
Many analysts see it as a step by the current US administration to localise techology talant in the US with hiring of locals.
“If implemented (new fee), there will be no business case for sponsorship of H1B for junior and mid-level IT services professionals. IT service providers will rely more on local hiring and subcons,” Pareekh Jain, an IT outsourcing advisor & Founder of Pareekh Consulting wrote in social media platform ‘X’.
According to Jain, IT services industry’s operating model will stabilize with increased offshoring or nearshoring or GCC as well as adoption of AI.
Industry experts also pointed out that the entry fee proposed by the US administration is higher than compensations of H1B visa workers operating in the US.
“When the salary paid to a H1B visa worker is lower than the entry fee, it is highly unlikely that the employer will try to bring a tech talent to the US for project work,” said an HR sector expert.
India is a major beneficiary of the H1B visa programme of the US with American technology giants sending most offshore workers to the US. In many ways, this step will kill the American dream of many Indian techies, which used to be a favourite route for work in the North American country.
