Washington/New Delhi – The United States President Donald Trump on Friday ordered an annual $100,000 fee on H-1B skilled worker visas, a move that could have sweeping consequences for the technology industry, where such permits are widely used.

The new measure, which is likely to face legal challenges, was announced alongside the rollout of a $1 million “gold card” residency programme Trump had previewed months earlier.

“The main thing is, we’re going to have great people coming in, and they’re going to be paying,” Trump told reporters as he signed the orders in the Oval Office.

H-1B visas allow US companies to hire foreign workers with specialised skills in fields such as science, engineering, and computer programming. The visa is initially granted for three years and can be extended to six. Each year, the United States allocates 85,000 H-1B visas via a lottery system, with Indian nationals making up roughly three-quarters of recipients with 72.6%, China 12.5%, Canada 1.0%, South Korea 0.9% and Philippines 0.8%. 

Large technology firms rely heavily on Indian professionals, many of whom relocate to the US or travel back and forth between the two countries. 

Growing Impact on India

Just a week ago, Indian Prime Minister Narendra Modi and Trump exchanged pleasantries on social media while discussing tariff renegotiations. With this visa policy now signed, analysts suggest the next flashpoint could be tariffs, with potentially significant consequences for India’s economy.

A senior executive at a multinational tech firm shared: “The US will absorb the shock, but India can’t. If 50,000 techies return, 49,000 will scramble for jobs—while the market stays stagnant. Companies might ditch veterans for those with a bit of US experience. We love talking up India’s growth, but there’s a real crisis brewing, and we’re not ready for it.”

Industry Backlash

Tech entrepreneurs, including Trump’s former ally Elon Musk, have warned against targeting H-1B visas, arguing that the United States lacks enough homegrown talent to fill critical roles.

“All the big companies are on board,” said Commerce Secretary Howard Lutnick, who joined Trump in the Oval Office.

India’s leading IT trade body, Nasscom, called the one-day implementation timeline “a concern,” warning that abrupt changes risk disrupting global business and talent pipelines.

A Pattern of Crackdowns

Trump has repeatedly targeted the H-1B programme since his first term. Earlier attempts, which restricted qualifying jobs, faced court challenges. The latest fee requirement, set to take effect Sunday, expires in a year but can be extended.

The US approved about 400,000 H-1B visas in 2024, two-thirds of them renewals. India remains the largest beneficiary, making it the most vulnerable to sudden shifts in policy.

Trump also signed an order creating an expedited pathway to US residency: $1 million for individuals, or $2 million for corporate sponsors. “I think it’s going to be tremendously successful,” he added.

The new fee requirement is due to take effect on Sunday, with critics warning that the disruption could be severe. India’s tech sector remains the most exposed, while multinational firms fear the changes could ripple through global talent pipelines.

For Washington, the measure reflects Trump’s broader immigration agenda. But for India and the global technology industry, the consequences may be far less predictable.