The American dream is turning into a nightmare for thousands of Indian students in the United States as former President Donald Trump's dramatic H-1B visa fee increase to $100,000 forces companies to automatically reject their job applications. What was once a straightforward path from US education to professional success has become an uncertain journey filled with closed doors and broken promises.
The $100,000 Barrier: How Visa Costs Are Changing Hiring
The Trump administration's recent decision to hike application fees for the coveted H-1B visa to an astonishing $100,000 has created immediate ripple effects across the employment landscape. While the White House has specified exemptions for recent overseas graduates and certain student visa holders already in the US, the evolving guidelines have created significant uncertainty among employers regarding sponsorship expenses and procedures.
Ishaan Chauhan's story exemplifies the struggle. After relocating from India nearly four years ago and earning a computer and data-science qualification from the University of Wisconsin-Madison, he expected numerous employment opportunities. Instead, as he seeks positions before his May graduation, most organizations decline to interview him upon learning about his visa sponsorship requirements.
"It doesn't matter if you went to the best university or you have the best GPA or you did the best internships, you can still fail," Chauhan told Bloomberg. "The question that always pops up is: Could you now or in the future need sponsorship? And that sort of just ends the conversation itself."
Employment Landscape Shifts Dramatically for International Candidates
The current employment scenario presents significant challenges even for US natives, with recruitment in white-collar sectors slowing considerably and AI developments reducing junior positions. For international students, the situation has become particularly dire.
According to Handshake, a student-focused career platform, the proportion of full-time positions offering visa sponsorship has plummeted from 10.9% to just 1.9% between 2023 and 2025. The technology sector has experienced the most substantial reduction, declining to one-third of its last year's level.
Walmart Inc., America's largest private employer, recently announced its decision to suspend job offers for candidates requiring H-1B visas. This trend is becoming increasingly common, with foreign graduates frequently encountering "No international candidates please!" statements during their job searches.
Kevin Collins from Carnegie Mellon University's Career and Professional Development Centre notes that organizations are showing heightened caution in their recruitment activities. Consequently, international students are submitting applications to significantly more positions than they did previously.
Economic Impact and Legal Challenges
Ironically, the visa fee hike comes at a time when research indicates Indian immigrants make substantial positive contributions to the US economy. A recent study by Manhattan Institute researcher Daniel Di Martino reveals that Indian immigrants top the list of immigrant groups making net positive contributions to the US economy.
The study found that each Indian immigrant, on average, contributes to a $1.6 million reduction in US national debt over three decades while generating the highest GDP impact among all immigrant groups. Chinese immigrants follow as the second most financially beneficial group, contributing to an $800,000 reduction in national debt over the same period.
The Trump administration introduced the new $100,000 application fee for companies seeking to sponsor skilled international workers in September, effective from the next lottery period. Trump indicated this fee would safeguard US employment opportunities and wages while promoting domestic recruitment.
Taylor Rogers, the White House spokesperson, explained in an emailed statement that this practical measure supports the 'America First' agenda by preventing system exploitation and protecting American wage levels. The statement emphasized that legitimate American businesses seeking skilled international talent would have increased certainty in their recruitment processes.
However, the US Chamber of Commerce has initiated legal proceedings against Trump's H-1B visa fee hike decision, deeming it unlawful and requesting court intervention to prevent implementation. Industry organizations have expressed concerns that this regulation could severely impact hiring practices in sectors reliant on international expertise.
Major technology corporations such as Amazon.com Inc., Microsoft Corp., and Meta Platforms Inc., which extensively utilize the H-1B visa programme, are considered particularly vulnerable to these regulatory changes.
With approximately 1.1 million international students currently enrolled in American universities according to Institute of International Education data, the implications of these policy changes extend far beyond current job seekers to affect future international enrollment and the long-term composition of America's skilled workforce.
