H-1B visa fee hike: Rules changed halfway through game
The US hike in H-1B visa fees threatens Indian IT professionals' dreams of working abroad, impacting careers and the IT sector's talent pipeline.
The United States government’s decision to increase H-1B visa fees has cost several IT professional living in Chennai and Bengaluru long-nursed dreams of working in top multi-national companies (MNCs) based in the United States.
The decision was announced by US President Donald Trump on Friday.
Reshma Elizabeth has been waiting for over two years to begin her three-year stint at her company’s headquarters in the US. Originally from Pandalur in the Nilgiris, and now based in Chennai’s Velachery, she said she was uncertain if her company would be willing to shoulder the extra financial burden. “The opportunity was career-defining for me. But with the new fees, I’m confused. Will my company still send me or ask me to contribute?” she said.
According to Anavir Aravind, who works in Chennai’s Porur and originally hails from Kerala, the change was a “fundamental” one that marked the “death of the traditional on-site business model”.
“The truth is, this is as much a crisis for American corporations as it is for us. They’ve grown dependent on a predictable, high-quality, and cost-effective talent pipeline from India. With the H-1B door effectively being shut through these punitive fees, they will now face a severe talent deficit,” he said.
Anish Panthalani (42), who does IT infrastructure management for a US client in Kochi, said he believes the Trump administration’s imposition of the $100,000 fee for H1B visas will ultimately backfire on the US companies which employ Indian IT talent.
“More than Indians, the US firms are likely to be affected in the long-run. The US IT sector heavily depends on Indians for various projects. With this fee coming in, overnight, the US firms cannot build up resources to manage their work. 70% of H1B visa holders have been found to be Indians,” said Anish, who is the state president of a techies group called Progressive Techies in Kerala.
Potential students are also affected. “It feels like the rules are being changed halfway through the game,” said M Shruti, , an IT professional from Hosur in Karnataka’s Krishnagiri district, whose plans to pursue higher studies in the US now stand compromised.
P. Anuradha, 32, an IT professional from Chennai, described the atmosphere in her office as “nervous.”
“People are whispering about whether their onsite chances are over. For many of us, going to the US was not just about money but about professional exposure and learning. That door looks almost closed now,” she explained.
Family members of IT professionals have also expressed concern about the change. In Coimbatore’s Kinnathukadavu, farmer Satheesh Kumar is trying to make sense of what the fee hike means for his son, Aravind, who had only recently secured Optional Practical Training (OPT) in the United States.
“We were just relieved when he got his break. Now the family has to figure out how to raise extra money. It is not easy for people like us,” he said, expressing the anxiety of middle-class households suddenly confronted with additional financial burdens.
Tamil Nadu’s IT sector is among the most H-1B dependent in India, with Chennai often dubbed the “back office of the world.” The latest hike threatens to dampen mobility, limit overseas exposure, and, in the long run, erode Tamil Nadu’s global IT footprint. It is expected to hit smaller IT firms particularly hard.
While large multinational corporations may absorb the costs, start-ups and mid-sized firms are likely to cut back on sponsorships, leaving many aspirants stranded.
One thing is starkly clear: the visa fee hike has added another layer of uncertainty to the already difficult journey from south India’s villages and IT hubs to the corridors of the Silicon Valley.
