A US federal court has cleared the way for the Trump administration to impose a steep $1,00,000 fee on new H-1B visa applications, a move that could sharply hit Indian professionals and India’s IT services industry, which is the largest user of the programme.
US district judge Beryl Howell ruled on Tuesday that President Donald Trump acted within his legal authority in announcing the massive fee hike, rejecting a challenge filed by the US Chamber of Commerce. The decision allows the administration to move ahead with one of its most aggressive steps yet to curb skilled immigration and push companies to hire more American workers.
For India, the ruling has far-reaching implications. Indian nationals account for the overwhelming majority of H-1B visa holders, and Indian IT companies are among the biggest users of the programme. Firms such as Tata Consultancy Services, along with other large outsourcing and technology services players, rely heavily on H-1B visas to deploy engineers and specialists to the US for client projects.
The new fee, if implemented, could make fresh H-1B applications prohibitively expensive, especially for services-led companies that operate on tight margins. Industry watchers say the cost increase may force Indian IT firms to rethink onsite staffing models, accelerate local hiring in the US, or shift more work offshore to India.
The US Chamber of Commerce said it was disappointed with the decision and warned that the $1,00,000 fee would severely disrupt access to global talent for American businesses. The group is considering an appeal.
The H-1B visa programme allows US companies to hire highly skilled foreign workers in specialised roles and operates through an annual lottery system. While technology firms are the biggest users, the programme is also critical for healthcare, education and research sectors.
Legal challenges are not over yet. A group of 19 US states has separately challenged the fee hike, citing potential damage to public services such as healthcare and education. However, for Indian professionals and companies, the court ruling signals a tougher road ahead in accessing the US job market under the H-1B route.