The recent increase in H-1B visa fees, announced by the US administration with a tight one-day deadline, may have significant repercussions for America’s innovation landscape and overall job market, according to Nasscom, the IT industry’s leading organization. In response to the new White House order signed by President Donald Trump, which imposes a $100,000 annual fee on H-1B visa applications as part of a wider reform of the skilled worker program, Nasscom expressed concern about the implementation timeline that affects anyone entering the US after 12:01 a.m. on September 21. They stated, “A one-day deadline creates considerable uncertainty for businesses, professionals, and students globally.
Policy changes of this magnitude should be introduced with appropriate transition periods to allow organizations and individuals to plan effectively and minimize disruption.” The organization is currently analyzing the specifics of the announcement. It noted that the fee increase will also affect Indian nationals holding H-1B visas working for both global and Indian firms. Indian technology service companies will face challenges as business continuity is interrupted for onshore projects and the increased costs necessitate adjustments. Companies will collaborate with clients to facilitate adaptations and transitions. Nevertheless, it is worth mentioning that Indian firms have been progressively decreasing their dependence on H-1B visas through enhanced local hiring in recent years.
Nasscom emphasized that these companies comply with all necessary governance and regulations regarding H-1B processes, ensure prevailing wages are paid, and contribute to the local economy and innovation collaborations with academic institutions and startups. The organization argued that H-1B workers are not a threat to US national security. Nasscom has consistently stressed the importance of high-skill talent in fostering innovation, competitiveness, and economic growth in the US, especially as advancements in AI and other cutting-edge technologies shape global competitiveness. High-skill talent is crucial for maintaining America’s innovation leadership and long-term economic viability.
“As developments unfold, we will continue to closely monitor the situation, engage with industry stakeholders regarding potential implications, and seek further clarity on the discretionary waiver process to be administered by the Secretary of DHS,” they concluded.
