H-1B Visa: Key Questions Answered

Quick Summary

• The US government has announced a presidential proclamation to overhaul the H-1B visa program, effective 21 September 2025.
• Employers filing petitions for H-1B workers outside the US will need to pay a $100,000 fee per petition.
• The fee aims to deter abuse of the system by companies replacing American workers with lower-paid foreign workers while maintaining access to skilled talent.
• This restriction will last for 12 months and may be extended after federal review.
• Exemptions exist if hiring aligns with national interest and does not pose security risks, as steadfast by the Secretary of Homeland Security.
• Existing H-1B visa holders already in the US are exempt from this rule.
• Wage levels for H-1B workers will be revised upward to curb wage undercutting; high-skilled and high-paid roles will receive priority over entry-level positions.
• B visas cannot be used for applicants awaiting approval or start dates before October 1, 2026.

– IT outsourcing firms using large volumes of these visas are expected to face increased scrutiny.

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Indian Opinion Analysis
The US’s overhaul of its H‑1B visa program introduces significant barriers that could directly impact Indian IT outsourcing firms, which have traditionally been major beneficiaries of this program due to their substantial presence in Silicon Valley and ties with global corporations reliant on skilled foreign talent. Imposing such high fees could squeeze profit margins or raise costs for companies dependent on hiring Indian professionals abroad.

While raising prevailing wage standards might reduce perceptions of exploitation tied to foreign labor in local economies, it may also lead Indian candidates hoping for entry-level opportunities in America’s tech sector notably vulnerable-creating hurdles at multiple levels.

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