Economists are warning that the Trump administration’s decision to impose a $100,000 fee on new H-1B visa applications might do more damage to the U.S. economy than to Indian immigrants.
While Indian nationals hold over 70% of H-1B visas, and many major U.S. tech firms like Amazon, Microsoft, Google, Apple, and Meta employ large numbers of H-1B workers, the new fee could hamper these companies’ ability to recruit global talent.
Analysts believe the fee hike may slow down U.S. economic growth. One economist from Berenberg said that what was earlier expected to be 2% growth may drop to 1.5%, due in part to restrictions on skilled immigration.
Other sectors that rely heavily on foreign talent—like healthcare and education—could also be impacted. Sectors outside tech, where costs per visa may rise sharply, may find it harder to attract the workforce they need.
Indian IT and outsourcing firms are preparing for these ramifications. Some are shifting work offshore or increasing remote contracting. Others are likely to pass on higher visa costs to U.S. clients.
