In a move that has sparked sharp reactions in India, United States President Donald Trump on Friday (September 19) signed an executive order imposing a $100,000 fee on new H-1B visas, a decision that could disproportionately affect Indian tech workers.
The order also introduced a new “Gold Card” programme priced at $1 million, touted as a fast-track for wealthy foreigners to live and work in the US. The Trump administration said the measures were aimed at curbing what it called “systemic abuse” of the H-1B system while ensuring more jobs for Americans.
The announcement initially created confusion, with early reports suggesting the $100,000 fee would apply annually to all H-1B visa holders.
However, a day later, the White House clarified that the charge would be a one-time application fee applicable only to new visas, not renewals or existing holders.
“Those who already hold H-1B visas and are currently outside of the country right now will NOT be charged $100,000 to re-enter,” press secretary Karoline Leavitt said, also assuring that those travelling with valid visas would not be charged upon re-entry.
“H-1B visa holders can leave and re-enter the country to the same extent as they normally would; whatever ability they have to do that is not impacted by yesterday’s proclamation.”
The Indian government, responding on Saturday, said it was studying the measure’s implications and flagged possible humanitarian “disruptions” for families.
The Ministry of External Affairs (MEA) directed Indian missions to extend “all possible help” to nationals travelling back to the US before the new rules take effect on September 21.
While refraining from direct criticism, the MEA noted that the “full implications of the measure are being studied” and stressed that talent mobility had long contributed to innovation, economic growth, and people-to-people ties between the two countries.
Industry body Nasscom also expressed concern, warning that the abrupt one-day deadline could severely disrupt business continuity and unsettle professionals. It underlined that Indian IT firms have been reducing reliance on H-1B visas through increased local hiring in the US and contribute significantly to the American economy.
“The H-1B workers for these companies by no means are a threat to national security in the US,” Nasscom said, cautioning that the decision could have ripple effects across the innovation ecosystem.
At the Oval Office signing, US commerce secretary Howard Lutnick said the move would ensure American firms hire domestically.
“Train Americans. Stop bringing in people to take our jobs,” he said, adding that the “Gold Card” would replace the EB-1 and EB-2 categories under the Green Card programme, limiting entry to “extraordinary people at the very top.” Trump summed up the new policy as favouring “only successful people.”
The proclamation accused outsourcing firms of exploiting the H-1B system, calling such misuse a “national security threat” and a barrier for US graduates seeking IT jobs. Indians currently account for over 70 per cent of H-1B visa holders, making them the hardest hit by the change.
The timing of the executive order has further strained already tense India–US ties. Washington has recently imposed up to 50 per cent tariffs on Indian goods, revoked the sanctions waiver for India’s operations at Iran’s Chabahar port, and now introduced the steep visa fee. The developments came shortly after Trump extended birthday greetings to Prime Minister Narendra Modi, raising hopes of a thaw.
Meanwhile, the US Congress is also debating the HIRE Act, a proposal to levy a 25 per cent excise tax on payments to foreign employees and restrict outsourcing deductions.
Back home, the opposition Congress party launched a scathing attack on Modi. Leader of Opposition Rahul Gandhi branded him a “weak” prime minister, while party president Mallikarjun Kharge criticised his “Bear Hugs, Hollow Slogans, Concerts and getting people to chant ‘Modi, Modi’,” accusing him of failing to protect India’s interests.
Kharge linked the visa fee hike with tariffs, the Chabahar setback, and the HIRE Act, saying these had already cost India Rs 2.17 lakh crore across ten sectors. Deputy leader Gaurav Gogoi drew a contrast with former PM Manmohan Singh, saying Modi’s “strategic silence and loud optics” had become a liability for India.
Earlier this month, India had defended the H-1B visa programme as a pillar of its partnership with the US. MEA spokesperson Randhir Jaiswal had described mobility as vital for technology, economic cooperation, and innovation, reaffirming that New Delhi was in dialogue with Washington on the issue.
The order also introduced a new “Gold Card” programme priced at $1 million, touted as a fast-track for wealthy foreigners to live and work in the US. The Trump administration said the measures were aimed at curbing what it called “systemic abuse” of the H-1B system while ensuring more jobs for Americans.
The announcement initially created confusion, with early reports suggesting the $100,000 fee would apply annually to all H-1B visa holders.
However, a day later, the White House clarified that the charge would be a one-time application fee applicable only to new visas, not renewals or existing holders.
“Those who already hold H-1B visas and are currently outside of the country right now will NOT be charged $100,000 to re-enter,” press secretary Karoline Leavitt said, also assuring that those travelling with valid visas would not be charged upon re-entry.
“H-1B visa holders can leave and re-enter the country to the same extent as they normally would; whatever ability they have to do that is not impacted by yesterday’s proclamation.”
The Indian government, responding on Saturday, said it was studying the measure’s implications and flagged possible humanitarian “disruptions” for families.
The Ministry of External Affairs (MEA) directed Indian missions to extend “all possible help” to nationals travelling back to the US before the new rules take effect on September 21.
While refraining from direct criticism, the MEA noted that the “full implications of the measure are being studied” and stressed that talent mobility had long contributed to innovation, economic growth, and people-to-people ties between the two countries.
Industry body Nasscom also expressed concern, warning that the abrupt one-day deadline could severely disrupt business continuity and unsettle professionals. It underlined that Indian IT firms have been reducing reliance on H-1B visas through increased local hiring in the US and contribute significantly to the American economy.
“The H-1B workers for these companies by no means are a threat to national security in the US,” Nasscom said, cautioning that the decision could have ripple effects across the innovation ecosystem.
At the Oval Office signing, US commerce secretary Howard Lutnick said the move would ensure American firms hire domestically.
“Train Americans. Stop bringing in people to take our jobs,” he said, adding that the “Gold Card” would replace the EB-1 and EB-2 categories under the Green Card programme, limiting entry to “extraordinary people at the very top.” Trump summed up the new policy as favouring “only successful people.”
The proclamation accused outsourcing firms of exploiting the H-1B system, calling such misuse a “national security threat” and a barrier for US graduates seeking IT jobs. Indians currently account for over 70 per cent of H-1B visa holders, making them the hardest hit by the change.
The timing of the executive order has further strained already tense India–US ties. Washington has recently imposed up to 50 per cent tariffs on Indian goods, revoked the sanctions waiver for India’s operations at Iran’s Chabahar port, and now introduced the steep visa fee. The developments came shortly after Trump extended birthday greetings to Prime Minister Narendra Modi, raising hopes of a thaw.
Meanwhile, the US Congress is also debating the HIRE Act, a proposal to levy a 25 per cent excise tax on payments to foreign employees and restrict outsourcing deductions.
Back home, the opposition Congress party launched a scathing attack on Modi. Leader of Opposition Rahul Gandhi branded him a “weak” prime minister, while party president Mallikarjun Kharge criticised his “Bear Hugs, Hollow Slogans, Concerts and getting people to chant ‘Modi, Modi’,” accusing him of failing to protect India’s interests.
Kharge linked the visa fee hike with tariffs, the Chabahar setback, and the HIRE Act, saying these had already cost India Rs 2.17 lakh crore across ten sectors. Deputy leader Gaurav Gogoi drew a contrast with former PM Manmohan Singh, saying Modi’s “strategic silence and loud optics” had become a liability for India.
Earlier this month, India had defended the H-1B visa programme as a pillar of its partnership with the US. MEA spokesperson Randhir Jaiswal had described mobility as vital for technology, economic cooperation, and innovation, reaffirming that New Delhi was in dialogue with Washington on the issue.
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