Trump’s New H1B Visa Decision 2025: Chaos for IT Companies & Tech Workers

Trump’s New H1B Visa Decision 2025: Whenever Donald Trump’s name is mentioned in American politics, the first thought that comes to mind is his “America First” policy. Once again, due to this H1B Visa policy, Trump has taken a major step that has shaken millions of IT professionals and tech companies. Donald Trump has decided to increase the cost of the H1B visa, which provides foreign workers with the easiest way to work in the United States. The Trump administration has announced that companies will now have to pay an annual fee of $100,000 (approximately 8.3 million rupees) for each H1B visa application. This change has dealt a significant blow to all Indian IT companies. This decision poses a threat to global employment, while also significantly impacting Indian IT professionals.

Millions of Indian IT professionals travel to the United States every year.  Even today, many American companies rely on foreign talent. Now, a major blow is about to fall upon these American companies and Indian professionals, or rather, has already fallen upon them. Trump’s decision to implement this policy from September 21, 2025, will now pose a dual challenge of cost and skill gap. While American companies will be reluctant to hire foreign labor, many Indians will also be reluctant to apply for H1B visas in the US due to the skyrocketing prices.

New H1B Visa Restrictions by Trump Cause Uncertainty in IT Sector

Amidst all this, All major IT companies that recently applied for US visas and received visa approvals will have to pay a fee of $100,000 per employee.  Yes, for example, Tata Consultancy Services, which received approximately 5,500 H1B visa approvals in 2025, and Amazon, which managed to secure more visa approvals, received 10,000. However, all these companies will now have to pay a fee of $100,000 per employee to bring their employees to the US. This fee will be very burdensome for companies, increasing their costs and posing a significant challenge for professionals in the Indian IT and technology sector.

IT Companies React to Trump’s New H1B Visa Rules

Let’s first understand the implications of this decision by Trump and how it will impact them. Adhering to the “America First” policy, the Trump administration recently issued another executive order mandating a $100,000 annual fee with H1B visa applications. This means this fee will apply not only to new visa applications but also to every visa renewal and almost every category of visa. This rule will take effect on September 21, 2025.  While this rule will directly impact many Indian employees, American companies will also hesitate to hire Indian talent as they will have to pay a fee of $100,000 to sponsor a visa.

While implementing this decision, Donald Trump has argued that many foreign workers who are working in America at low salaries are abusing the H1B program. This means that these foreign workers are taking away the jobs of American workers, due to which American-born workers living in America are suffering, and due to this, local employment and skill development in America is getting affected.

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How will this decision by Trump affect Indian companies and employees?

• This decision by Trump will be a significant setback for IT companies and those who used to travel to the US on H1B visas.
• Many Indian IT companies send employees to client companies on H1B visas, where work is done onshore.
• But now, Indian IT companies will have to pay a hefty fee of $100,000 per year for H1B visas, which is virtually impossible.

• Due to this decision by Trump, many Indian companies and professionals will forgo H1B visa applications and will begin working in India.
• This decision also does not provide any exemptions for highly talented employees. This will further increase competition in India, and only the best professionals will find opportunities in Indian companies.
• In addition, the cost of all projects completed by outsourcing companies will also increase.
•  Many Indian IT services outsourcing companies work on numerous onshore projects in the US, and this new decision will increase the costs of all these projects.
• It is possible that such companies will either shut down these projects or outsource work to other countries, as Indian IT companies can no longer afford to send their employees to the US on such expensive visas, and US companies, too, cannot afford to pay such high visa fees for outsourcing.

What will be the impact of this decision on the US?

• Although some experts believe that this decision will not significantly impact the US, it will certainly lead to a skills crisis and increased costs for technology companies.
• Because many US sectors, such as IT, cybersecurity, data science, etc., require high-tech skills, and Indians possess these skills in abundance, it is possible that all these sectors in the US will be affected.
•  Additionally, Amazon, Google, Microsoft, Apple, and many Indian IT outsourcing companies will now face increased costs, and some may withdraw from the visa application process altogether. This government decision could hinder the US from attracting foreign talent.
• This could lead to Indians opting to migrate to Canada, Australia, and Europe in the future.
• Furthermore, many American universities and research institutes rely on international researchers and students. Trump’s decision will also impact innovation and scientific research.
• However experts believe that Trump would need constitutional authority and congressional approval to impose such a high fee, although this has not yet been confirmed.

How will Trump’s decision affect Gold Cards and Green Cards?

Yes, the increased H1B visa fees imposed by Trump could impact Gold Cards and Green Cards, as the number of applicants will increase.  While the Trump administration has imposed a hefty fee on H-1B applicants, it has also introduced a new option called the Gold Card. The Gold Card allows individuals to obtain permanent residence in the United States by paying a fee of $1 million per person. This option is a significant advantage for those who wish to live in the United States. It will be similar to the traditional Green Card system, but only for those who are able to invest up to $1 million in the United States.

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Conclusion

This decision by the Trump administration is not only protecting American workers and limiting the use of foreign skills, but also posing a direct risk to Indian professionals and Indian IT companies. This decision could prove to be a double-edged sword for the United States. However, if the US implements this decision appropriately, providing necessary exemptions and balances, such as job protection, it will certainly be beneficial for the US. However, if this decision is implemented abruptly and harshly, it could also be detrimental to American technological innovation and global competitiveness.

 However, this decision has caused considerable confusion in India. Even companies with employees in India who have received H1B visas have been ordered to arrive in the US by December 21, 2025. This includes major companies like TCS, Amazon, Microsoft, Meta, Apple, Google, Infosys, Wipro, and others. It remains to be seen how Trump’s decision will affect these employees and whether this decision will be beneficial for the US.

FAQs About Trump’s New H1B Visa Decision 2025