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Informist, Sunday, Sept. 21, 2025

KOCHI – The US government Sunday clarified that the $100,000 fee for H-1B visa is a one-time payment applicable to those applying for a new visa and not for visa renewals or for those currently holding a visa. "This is NOT an annual fee. It's a one-time fee that applies only to the petition," US Press Secretary Karoline Leavitt said on social media platform X. The clarification came after the US government initially said the new fee should be paid on an annual basis, creating worries and confusion across countries.

Leavitt also clarified that the new fee will not be charged on H-1B visa holders who are currently outside the country. These visa holders can leave and re-enter the US "to the same extent as they normally would; whatever ability they have to do that is not impacted by yesterday's proclamation."

The H-1B visa programme allows employers to hire foreign workers temporarily in the US on a non-immigrant basis in specialty occupations or as fashion models of distinguished merit and ability, as per information on the US Department of Labor's website. "The H-1B classification has an annual numerical limit of 65,000 new statuses/visas each fiscal year", as per the department's website. However, an additional 20,000 petitions filed on behalf of beneficiaries having a master's degree or higher qualification from a US higher education institution are exempt from this cap, it said.

"If you're going to train somebody, you're going to train one of the recent graduates from one of the great universities across our land (US)," said Commerce Secretary Howard Lutnick. Train Americans and stop bringing in people to take "our" jobs, he said. The US unemployment rate was at a four-year high of 4.3% in August, data released by the US Department of Labour last week showed. This is slightly higher than the 4.2% reported a month ago and in the year-ago period.

The new fee is likely to put pressure on US companies or individuals who outsource services to foreign nationals. The move comes a few weeks after Ohio Senator Bernie Moreno introduced the Halting International Relocation of Employment Act, or HIRE Act, in the Senate proposing a tax of 25% on those outsourcing services from foreign countries. The HIRE Act aims to reduce US entities' or individuals' dependence on foreign employees and focus on hiring local manpower.

Following the US government's announcement, India said the measure is likely to have humanitarian consequences by way of disruption caused to families. "Government hopes that these disruptions can be addressed suitably by the US authorities," the external affairs ministry said in a statement Saturday. The ministry also said that policy makers will assess the move and take account of mutual benefits such as "strong people-to-people ties between the two countries."  End

US$1 = INR 88.09

Reported by Anjana Therese Antony

Edited by Ashish Shirke

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