New $100,000 fee for work visa applications shocks Indian families, but the true impact may hit the US economy hard

Families rushed off flights from New York to New Delhi. Ticket prices for India-US routessoaredovernight. WhatsApp calls buzzed with panic as Indian professionals in America tried to make sense of what had just happened.

When US President Donald Trump announced a staggering $100,000 fee on new H-1B visa applications, the shock rippled instantly through Indian communities on both sides of the ocean. For many, the American dream they had spent years building seemed to collapse in a single press release.

One of them was Suman (name changed), 39, a healthcare worker in New York. After three years of living apart from her husband and sending money home to support her elderly parents and sister, she sat in her apartment staring at her phone in disbelief.

"I am on a H-1B visa, and I have been so stressed since then that my life seems like it will go upside down," Suman told RT over a WhatsApp call from her apartment in New York.

"I've been working here for the last eight years, and I have taken loans and mortgages. Everything felt like it was coming crashing down on me."

'Everything feels uncertain now'

For families across India, Trump's sudden move upended their daily life.

Muhammad Anas, 62, from the southern state of Telangana, said his family was devastated.

"My daughter is working in the US and teaches social science at a college. She is on a H-1B visa. We all felt very distressed, and she was crying on the call. She has two children, and her husband is pursuing a PhD there. The whole family feels the pain of what is going on," he told RT. "The Indian government should take up the case with the US so that our children have some kind of certainty."

Back in India, the announcement also rattled young professionals who had been preparing for years to build their lives in America.

Kazim Ahmad, 27, a graduate of a premier engineering college in West Bengal, said he was crushed.

"I spent two years getting certified and interviewing for US companies. I feel very disheartened and devastated. It seems my American dream is dying now," Ahmad said.

"I come from a very poor family, and my state is also very poor. Going to the US could have stepped my family out of poverty and helped me progress, but now, I do not think aspirants have an option to move to the US."

Another hopeful, Vipul Kumar, echoed the frustration.

"I spent my money and time on exams. I planned my life around the opportunities in the US. I feel very lost now."

Even those already working in America were forced to reconsider their plans.

Inder Jeet, 35, from Haryana and an employee of a global tech giant, said his company warned him not to travel.

"I was planning to go home next week and meet my family after two years, but now my company has informed us not to travel. I am heartbroken, but I am also thinking about what comes next for us," he added.

"The families on H-1B are enduring a nightmare. Some have just bought a home on a mortgage, and some have high loans to pay; everyone has a story."

FILE PHOTO: A crowd of passengers at Trivandrum International Airport in Thiruvananthapuram, Kerala, India.

Creative Touch Imaging Ltd. / NurPhoto via Getty Images

For Suman in New York, the fear goes beyond bills and mortgages.

"We do not know what tougher measures this administration is coming out with for migrants who are really working hard in this country to be part of it. To be part of the American dream," she said, admitting she now questions whether it is wise to build a future in the US "There are a lot of questions in my mind."

From Washington's clarifications to India's alarm

The announcement left companies and employees scrambling. Within hours, several American tech giants warned their Indian staff not to leave the country and for those already abroad to return as quickly as possible. Rumors spread across airports, WhatsApp groups, and workplaces, fueling fears that even existing visa holders might be locked out.

It wasn't until the next day that the administration sought to calm the chaos. The White House clarified that the new $100,000 fee would apply only to fresh H-1B applications, not renewals or extensions. Current visa holders, officials said, would not be affected. At the same time, the Trump administration doubled down on its broader policy shift. A new proposal outlined changes to the H-1B lottery that would prioritize higher salaries and "top talent," with the stated goal of protecting American workers from "unfair wage competition from foreign workers."

New Delhi was quick to sound the alarm. India's Ministry of External Affairs described the sudden shift as more than an economic measure - calling it a potential "humanitarian crisis."

"This measure is likely to have humanitarian consequences by way of the disruption caused to families. Government hopes that these disruptions can be addressed suitably by the US authorities," said Randhir Jaiswal, spokesperson for the ministry.

FILE PHOTO: Randhir Jaiswal.

AP Photo / Seth Wenig

He added that the mobility of skilled talent had contributed enormously to technology development, innovation, and economic growth in both countries. "Policymakers will therefore assess recent steps considering mutual benefits, which include strong people-to-people ties between the countries."

For Indians in the US, many say it is not about the job alone, but about the years of hard work they have put into building their lives in a country where they are now staring at an uncertain future. Earlier, Trump imposed 25% tariffs on Indian goods exported to the US, plus additional duties as a penalty for trading with Russia - making some exports completely unviable.

A double-edged outcome

Industry experts in India were more blunt. Mohandas Pai, former chief financial officer of Infosys, warned that Trump had "shot himself in the foot."

"These companies are among the most valuable assets in the US and the foundation of its global dominance. They are heavily reliant on high-quality H-1B talent from around the world," Pai said, adding that the sharp fee hike would freeze fresh demand and push companies to shift jobs offshore.

Pai estimated that the impact on India itself will be minimal, since the fee hike applies only to new applications. He pointed out that there is already a substantial stock of H-1B employees in the US, and most Indian IT firms now maintain large local (American) teams in their US development centers. "Over the past five years, they have undertaken risk mitigation measures," he explained. He added that the visa restrictions would likely accelerate the growth of Global Capability Centers (GCCs) in India. "The multinational corporations respond to the scarcity of work visas by offshoring more operations."

FILE PHOTO: Three men wearing turbans conduct a meeting at SAP HanaHaus co-working space at the Blue Bottle Coffee shop in Silicon Valley, Palo Alto, California.

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India's Sherpa for its G20 presidency in 2023, Amitabh Kant, slammed Trump's move. He stressed that the $100,000 H-1B fee will choke US innovation and turbocharge India's.

"India's finest doctors, engineers, scientists, innovators have an opportunity to contribute to India's growth and progress towards Viksit Bharat," hetweeted.

Officials in India's IT hubs also suggested the move could prove a long-term advantage for the country. Jayesh Ranjan, special chief secretary in Telangana, called it "a game changer."

"More skilled professionals may now choose to stay or return to India, which will fuel domestic innovation, startups and economic growth, and help transform India into a global technology hub. This will mainly affect American companies and some Indian youths who prefer going to the US. With this, many will be motivated to stay back, and this reverse brain drain will strengthen economic opportunities, competitive wages and broader reforms," the officialtoldThe New Indian Express.

Between broken dreams and new beginnings

For thousands of Indian families in the US, the new visa fee feels like a nightmare - mortgages, student loans, and years of sacrifice suddenly overshadowed by political uncertainty. As one H-1B worker put it: "Everyone has a story - a house just bought, a loan to repay, parents to support. Now everything is in doubt."

Yet industry observers in India say the broader impact could be more complex. Ajay Bagga, a financial markets commentator, noted that the policy might reduce India's long-running brain drain, forcing both government and industry to find ways to absorb and productively employ highly skilled talent at home.

FILE PHOTO: Donald Trump.

Win McNamee / Getty Images

"Brain drain will reduce, and India will have to find other avenues or productively use these people. This will be an objective for the government too," he told ANI news agency.

Others predict neighboring countries will benefit first. Canada and the UK, both eager for high-skilled migrants, could see a surge in applications as US doors narrow. Still, many in India believe the long-term opportunity lies at home - with more engineers, doctors, and innovators choosing to stay, fueling startups and strengthening the country's own technology ecosystem.

In the short term, though, the uncertainty remains crushing. For families like Suman's, it isn't just about fees or policy. It's about watching years of effort and sacrifice suddenly hang in the balance - and wondering whether the American dream is still worth chasing.

(RT.com)