Trump drops HIB bomb

HARD DRIVE | US President Donald Trump has ordered a steep hike in the annual H-1B nonimmigrant visa fee to USD 100,000 for new applicants. Indians will be the most affected.. Will lead to spike in offshoring

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Indian IT services firms blindsided by the Trump Administration's sudden move to impose a $100,000 fee for H-1B visa petitions are expected to be impacted by about $750 million - $1 billion annually, amounting to a 7 per cent hit on operating margins in the medium term.

The margin pressure will come from both cost increase and emergency visa sponsorship, which the IT companies may be forced to absorb to retain key US projects. However, profitability of these companies are unlikely to get severely impacted, analysts tracking the Indian IT sector said. It is still not known whether the sponsors of the existing Hi-B visa holders based out of the US will have to pay the increased amount after their 12-month tenure expires.

Effective September 21, 2025, the US employers will have to pay a $100,000 annual fee for every new H-1B visa petition, or for H-1B holders seeking to re-enter the US from abroad. This move represents the largest-ever fee hike for the high-skilled visa programme, with the administration claiming that it will ensure only the "most exceptional" foreign workers are brought in and to curb what it terms as "abuse" of the programme.

Nasscom, the lobby group which represents all Indian technology companies, said it will disrupt business continuity for onshore project delivery.