Business Desk – A big update has come regarding H-1B visa for Indian IT professionals dreaming of working in America. US President Donald Trump signed a new order tightening the monitoring and regulations of the H-1B visa program.
Along with this, the provision of $1 lakh fee applicable on some new H-1B applications has been extended for one year. Challenges continue in the courts regarding the new system and its legal validity.
How long will the $100,000 fee last?
The arrangement, implemented in 2025, has been extended for another 12 months with a presidential order dated September 18. According to the official announcement, this ban will be effective from September 21, 2026 and will remain in force for 12 months, i.e. till September 2027, unless it is extended further.
This primarily applies to new H-1B cases from people located outside the US whose petition has not been accompanied by the $100,000 payment. In some cases, exceptions have been made on the basis of national interest. However, the legal battle regarding this fee continues. In July, an appellate court declined to immediately lift a lower court order blocking the Trump administration's effort.
Why was the new order brought?
The White House says the H-1B program is being used by some employers, third-party placement groups and outsourcing companies to hire low-wage foreign workers. The administration claims that this affects the jobs and salaries of American workers.
The order said a wage gap of $9,000 to $20,000 has been found between H-1B workers and U.S.-born workers doing similar work in some H-1B-dependent industries. These are claims of the administration, not independent findings.
Layoffs of companies will also be investigated
An important part of the new order is related to layoffs in companies. Now the relevant US agencies, while reviewing the H-1B application, will have to see whether the sponsoring company has laid off US employees in similar positions in the last one year. It will also be seen whether the company is planning to do such layoffs in future.
Additionally, the Department of Labor's Wage and Hour Division will begin reviewing data from previously submitted Labor Condition Applications within 30 days so that further action can be taken against sponsoring companies, if necessary.
Special attention on outsourcing companies
Questions have also been raised on some outsourcing companies in the order. According to the White House, the six largest H-1B using companies working on outsourcing model made more than 25,000 H-1B registrations in fiscal year 2026. The administration alleges that some companies use the model of replacing American employees with foreign workers and later sending the work abroad.
The government has also cited alleged violations such as visa fraud, providing false information, underreporting the required salary and showing such jobs in the specialist category.
What does this mean for Indian IT workers?
The H-1B visa allows American companies to hire foreign professionals for specialized skilled jobs. It has long been an important pathway for Indian professionals working in technology, engineering, IT, finance and other specialist areas.
The new system may have the most direct impact on new H-1B applicants outside the US and the companies sponsoring them. According to the official announcement, this $1 lakh fee is not applicable to those who are already on H-1B and are renewing it. Cases of a person living in America on student visa and later taking H-1B are also kept out of this fee.
What is H-1B visa?
H-1B is a non-immigrant visa that allows American companies to hire foreign workers for specialized skilled jobs. This is one of the major pathways for Indian IT and technology professionals to work in the US. After the new order, along with visa applications, the company's salary, employment and retrenchment records will also be under greater scrutiny.
