Nasscom Warns of Business Disruption from New $100,000 H-1B Visa Fee
Nasscom has expressed concerns over a White House proclamation introducing a $100,000 annual fee on H-1B visa applications, effective September 21, 2025. The industry body warns this could disrupt America's innovation ecosystem and job economy. Nasscom highlighted that Indian IT companies have already reduced H-1B dependence by increasing local hiring, implementing nearshoring, and partnering with US firms. The association emphasized member companies' compliance with rules, payment of prevailing wages, and significant contributions to the US economy. Nasscom plans to monitor developments, engage with stakeholders, and seek clarity on the discretionary waiver process.
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The National Association of Software and Service Companies (Nasscom) has raised concerns over a recent White House proclamation that introduces a substantial $100,000 annual fee on H-1B visa applications. This new fee, set to take effect on September 21, 2025, has prompted the industry body to warn of potential ripple effects on America's innovation ecosystem and job economy.
Impact on Business Continuity
Nasscom highlighted that the additional cost burden could significantly disrupt business continuity for both Indian and global firms that rely on H-1B professionals. The tight implementation timeline of the new fee structure is expected to create considerable uncertainty for businesses, professionals, and students alike.
Reduced H-1B Dependence
The association pointed out that Indian IT companies have already taken steps to reduce their dependence on H-1B visas. These measures include:
- Increasing local hiring in the United States
- Implementing nearshoring strategies
- Developing partnerships with US-based companies
Compliance and Economic Contribution
Nasscom emphasized that its member companies:
- Adhere to compliance rules
- Pay prevailing wages
- Contribute significantly to the US economy
The organization also stressed that H-1B workers do not pose any national security threat to the United States.
Concerns and Future Actions
The industry body expressed several concerns about the new visa fee:
- Potential disruption to the US innovation ecosystem
- Possible negative impacts on the American job economy
- Uncertainty for businesses and professionals due to the implementation timeline
Next Steps
Moving forward, Nasscom plans to:
- Monitor developments closely
- Engage with relevant stakeholders
- Seek clarity on the discretionary waiver process administered by the US Department of Homeland Security
As the implementation date approaches, the impact of this new H-1B visa fee on the technology sector and US-India business relations will likely be a topic of ongoing discussion and analysis.
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