Major H-1B Visa Changes: $100,000 Fee and Wage Floor Increase Proposed

The H-1B visa program, vital for thousands of skilled foreign workers and U.S. employers, is facing sweeping reforms that could reshape the landscape starting late 2025. The U.S. government under President Donald Trump is planning one of the most significant overhauls yet, including a staggering $100,000 application fee for H-1B visa petitions. This reform aims to curb perceived abuse of the program and prioritize employment opportunities for American workers.

Currently, employers pay a $215 lottery registration fee and $780 for filing the visa petition. The proposed $100,000 charge would drastically raise the cost to access the H-1B program, potentially limiting applications mainly to those companies willing and able to pay this premium. The administration argues that the H-1B visa has been misused as firms often replace American workers with lower-paid foreign labor, which they claim suppresses U.S. wages and discourages Americans from pursuing science and technology careers.

Alongside the fee hike, the Department of Labor is directed to revise prevailing wage rules, making it more difficult for companies to hire foreign workers at wages below those paid to American employees. This move seeks to further protect domestic labor markets and address concerns over wage undercutting by foreign employees on H-1B visas.

In parallel, legislative proposals such as the American Tech Workforce Act have surfaced, introducing stricter eligibility requirements. This bill proposes raising the minimum salary threshold for H-1B holders from approximately $60,000 to as much as $150,000 and abolishing programs like Optional Practical Training (OPT) that currently allow hundreds of thousands of foreign graduates to work temporarily in the U.S. It also suggests replacing the existing lottery system with a merit-based approach that favors employers offering higher wages.

Tech companies, which heavily rely on H-1B visa holders for roles in software engineering, IT management, and other specialty occupations, are expected to feel the sharp impact of these changes. Critics argue that such companies often exploit loopholes by submitting inflated volumes of visa applications and outsourcing lower-paying jobs to foreign workers. The new rules aim to close these gaps and bolster the integrity of the visa system.

However, these reforms have met opposition from economists and immigration experts who warn that imposing a $100,000 fee could effectively end the H-1B program by making it prohibitively expensive for most employers. They caution that this could harm the U.S. economy, especially sectors like healthcare and technology that depend on skilled immigrant labor for growth and innovation.

For Indian professionals, who are among the largest recipients of H-1B visas, this could mean a more challenging and costly process to obtain or maintain work authorization in the U.S. Additionally, the administration is tightening citizenship application requirements, adding further hurdles for long-term residents aiming for permanent status.

In summary, the H-1B visa program is at a crossroads in 2025, facing major changes designed to protect American workers, but also risking limiting access for foreign talent critical to many U.S. industries. Companies and visa applicants should closely monitor these developments and prepare for a new, more restrictive regulatory landscape.