New York, September 24, 2025 — The Trump administration’s newly imposed H-1B visa application fees have reignited debates over immigration policy, with economists warning of a potentially significant impact on skilled foreign workers. According to estimates from JPMorgan Chase & Co., the increase could affect as many as 5,500 jobs each month, with Indian professionals, long the backbone of the U.S. technology and consulting sectors, likely to bear the brunt.
Indians Most Vulnerable
Bloomberg reports that in 2024, approximately 71 percent of approved H-1B petitions were granted to Indian nationals. More than two-thirds of approvals were for positions in computer and IT services.
The new fee—approximately ₹83 lakh ($100,000) per application is expected to disproportionately impact applications processed abroad. Economists say the change could have a “direct and unequal” effect on Indian professionals’ employment prospects in the United States.
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A System at Risk
Senior economist Lozjana Abdelwahed of Revelio Labs warned that the fee hike “practically threatens the entire H-1B system.” She estimates that up to 140,000 new jobs annually could be affected-jobs that U.S. companies rely on foreign talent to fill.
Weak Labor Market and Declining Immigration
The U.S. labor market has already shown signs of slowing. Over the past three months, an average of just 29,000 new payroll jobs were added monthly, the slowest pace since the pandemic. Federal Reserve Chairman Jerome Powell recently noted a “clear decline in labor supply and demand,” partly due to reduced immigration.
Political and Legal Challenges
California Attorney General Rob Bonta criticized the new policy as introducing “uncertainty and unpredictability” for businesses dependent on skilled foreign workers. California’s economy, heavily reliant on the tech sector, could face direct consequences, he said.
Bonta’s office is reviewing whether the new fee violates the Administrative Procedure Act, which requires adequate justification and public notice before new policies are implemented.
“There must be a rational basis. No decision can be arbitrary. If this policy is found unlawful, we will challenge it in court,” Bonta said.
Pressure on Companies
Economists predict the fee hike will prioritize visas for higher-paying sectors such as technology, finance, and health services, while placing additional pressure on lower-paying sectors like education and research. Major U.S. corporations, particularly Silicon Valley tech giants, have repeatedly warned that limiting access to foreign talent could erode America’s competitive edge.
Broader Context
The H-1B visa program has, since the 1990s, allowed U.S. companies access to highly skilled foreign professionals. The current fee increase, however, challenges both the economic utility and political legitimacy of the program. Experts suggest that in the coming months, the issue could play a central role not only in courts but also in debates surrounding the next U.S. presidential election.
