Athira Sethu
Kochi, 26 Dec 2025
The US administration has just announced significant changes to the H-1B visa program after former President Donald Trump proposed a very high new fee of $100,000 for new H-1B visa applications. Related to this, the government intends to alter the selection and issuance of H-1B visas.
Earlier, H-1B visas were granted based on a ‘lottery’ system because far more people applied than the annual limit of 85,000 visas. The system now will eliminate this lottery. Instead, the visa will be granted on the basis of salary levels. The offer of higher remuneration would give the applicant a better chance of selection.
The US Department of Homeland Security said the change aims to protect American workers, as some companies have been suspected to misuse the old lottery system by hiring foreigners at lower wages for jobs. The new system thus will focus on high-skill and high-pay jobs to make sure companies do not underpay workers.
Another key change is the vast increase in fees. Whereas earlier, employers paid between $2,000 and $5,000 for an H-1B visa, under the new proposal, the fee would balloon up to $100,000, making it a far costlier affair to hire foreign workers.
These new regulations will take effect on February 27, 2026, well before H-1B registrations open for the 2027 financial year.
Impact on Indian Workers and Companies
Indian professionals are the largest group of H-1B visa holders. In 2024, about 57% of all H-1B visas went to Indians. Many Indian IT companies like TCS, Infosys, and Cognizant rely heavily on these visas; thus, the changes may affect them badly.
According to experts, the new system would favor senior professionals drawing higher salaries. For entry-level workers and fresh graduates, including a number of Indian students in the US, obtaining an H-1B visa would be far more difficult.
Stricter background checks have also been initiated in the US, including social media screening. This has delayed visa interviews and left many applicants in a limbo.
Proponents argue that the H-1B program is crucial to innovation, healthcare, and education, while critics believe the system is being frequently abused for low-pay jobs. All in all, it could turn out to be significantly more difficult for young professionals to work in the US, while such a course of events might push more jobs overseas.
