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A Presidential Proclamation: H-1B Visa Crackdown


On September 19, 2025, President Trump announced extensive restrictions on the H-1B Visas – most notably a $100,000 application fee for all new visas. For decades the H-1B Visa has been essential to America’s high-skilled immigration system. U.S. companies have been able to recruit foreign talent, specifically in the tech and IT field. This new policy will have dramatic effects on domestic immigration and international governments and companies. 


What is the H-1B Visa?


The H-1B Visa program was created in 1990 to allow U.S. companies to hire international workers for “specialty occupations.” Such jobs require advanced knowledge, predominantly in software development, engineering, and other forms of research. Employers are able to petition for the visa on behalf of their employees. Tech giants such as Google, Microsoft, and Apple, have extensively used and benefitted from the program.


The H-1B program has served as a bridge between the American labor shortage in STEM fields and an eager international workforce. Some, however, argue that the program has been misused in efforts to solely create a cheaper labor pipeline. 


The New Proclamation 


“The Restriction on Entry of Certain Nonimmigrant Workers” was proclaimed by President Trump stating “the large-scale replacement of American workers through systemic abuse of the program has undermined both our economic and national security.” So what does this entail? Beginning on September 21, 2025 any new H-1B petitions will be accompanied by a $100,000 fine. This proclamation does not extend to already existing visas or petitions submitted before the effective date or renewals of existing visas. 


H-1B Visas issues by nationality via Vijdan Mohammad Kawoosa. Data from Bureau of Consular Affairs, U.S. Department of State
H-1B Visas issues by nationality via Vijdan Mohammad Kawoosa. Data from Bureau of Consular Affairs, U.S. Department of State

What does this mean for India’s IT Industry? 


In 2024, India was by far the largest beneficiary of the H-1B Visa program with 71% of approved beneficiaries. Indian IT companies have relied heavily on outsourcing their talent to U.S. companies to create lucrative U.S. contracts. Alternatively, firms are exploring options such as outsourcing to China or Europe where immigration regimes are less restrictive. 


The Politics Behind the Policy


The restrictions on H-1B Visas is not an isolated adjustment, rather it contributes to a larger campaign promise. Trump has made immigration a pillar of his political identity and made the message clear: foreign labor is taking opportunities from American workers and the government has a duty to put the American workforce first. For his political base, this obstacle symbolizes pushback against corporations who are exploiting outsourcing firms and a call for Americans to regain their place in STEM fields. 


The policy shift reflects a broader U.S. political discourse that is prevalent in this climate: immigration debates are shifting away from solely humanitarian or security issues and increasing focus on economic competition and strengthening a national identity. 


Conclusion: A Measure of Global Power 


Trump’s H-1B Visa restrictions are a step towards the administration's goal to turn America’s labor market into one governed by its own terms and people. In this instance, however, it means pushing workers and companies toward other countries.


This policy is among many reforms to crackdown immigration. However, America’s global power has long depended on innovation, largely fueled by skilled international talent. If future individuals redirect their aspirations to another country, it could have serious implications on progress.


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