Monday, 06 Oct, 2025
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The US Chamber of Commerce plans to challenge Trump’s H-1B fee, saying it threatens competitiveness and access to global talent.
Pradeep Pandey (name changed), a 27-year-old software developer in Pune, once thought winning the H-1B visa lottery was just the beginning. He imagined himself in Silicon Valley, building cloud systems or AI tools at a US tech firm. Now, that plan is on hold. The Trump administration’s decision to slap a $100,000 fee on companies sponsoring H-1B applicants has forced his prospective employer to reconsider whether it can afford to bring him over.
Pradeep’s situation reflects a wider uncertainty. Indians have long dominated the H-1B programme, which allows US companies to hire foreign professionals in specialised roles. In FY2024, 71 per cent of all approved petitions were for Indian nationals, far outpacing every other country. That share underscores how reliant US firms—particularly in software, data, and engineering—have become on Indian workers.
The US economy itself leans heavily on foreign-born talent in science, technology, engineering, and math (STEM). The National Science Board estimates that more than 7 million foreign-born STEM workers were active in 2021, about 19 per cent of the total. Among science and engineering roles, 29 per cent of workers were born in India and 13 per cent in China. These numbers highlight how central global talent has become to America’s innovation engine.
The proposed $100,000 fee could alter that balance. For tech giants such as Microsoft, Amazon, or Google, the cost is unwelcome but manageable. For mid-sized firms and startups, it could be prohibitive. A company employing 200 H-1B workers would suddenly face $20 million in extra costs—enough to deter hiring altogether.
The fallout may not stop there. Companies unwilling to pay may shift work offshore to India or other low-cost markets, exporting not just jobs but also innovation networks and opportunities. That would weaken US cities that have long benefited from immigrant-led growth in areas like Silicon Valley, Seattle, and Austin.
India, too, has a stake. Remittances sent home by overseas workers are a vital source of income. In 2023, India received around $125 billion in remittances—the highest in the world—with a sizable portion coming from the US. Any slowdown in the migration pipeline could hit household finances and regional economies in states such as Kerala, Punjab, and Telangana.
From Washington’s perspective, the move may undermine its own goals. Research shows that foreign workers often complement rather than replace Americans. One study found that higher shares of H-1B employees in a given occupation correlate with lower unemployment rates for US workers in the same field. In other words, foreign talent tends to expand the pie instead of slicing it thinner.
Industry groups are already sounding alarms. The US Chamber of Commerce is preparing to challenge the policy, warning that the fee would undercut competitiveness and block access to global skills. Critics argue the measure runs against US ambitions to lead in cutting-edge technologies like AI, biotech, and clean energy.
Meanwhile, New Delhi is strengthening its own tech base. Through its “Make in India” programme, India is offering incentives to boost local R&D and manufacturing. If entry to the US becomes too costly, Indian engineers may choose to stay home or head to friendlier destinations like Canada, Australia, or the UK—countries actively loosening visa rules to attract skilled migrants.
For Pradeep, the decision is deeply personal. His employer has asked for more time to weigh whether it can justify the cost. Recruiters in Toronto have already contacted him with alternatives.
The broader question is whether the US still wants to be the world’s magnet for talent. At a time when innovation is more global than ever, putting a six-figure price tag on opportunity may reshape not only individual careers but America’s technological edge.
