New Delhi: In a sweeping move that could hit Indian tech workers the hardest, United States President Donald Trump on Friday (September 19) signed an executive order proposing a $100,000 fee for H-1B visas. The Indian government, reacting a day later, said it was studying the measure’s implications and noted that the restrictions could cause humanitarian “disruptions” for families.For employees on the H-1B visas who were outside the US, the administration advised them to return before midnight on Saturday, when the new fee structures would take effect.While initial reports had called this an annual fee that would be applicable on all H-1B visa holders, the White House press secretary clarified a day later that this was a one-time fee charged at the time of application for a new H-1B visa. “This applies only to new visas, not renewals, and not current visa holders,” the clarification from the press secretary stated. The clarification also changed its tune about H-1B visa holders who were travelling, and said they could continue to travel as per normal. “Those who already hold H-1B visas and are currently outside of the country right now will NOT be charged $100,000 to re-enter,” press secretary Karoline Leavitt said on X. “H-1B visa holders can leave and re-enter the country to the same extent as they normally would; whatever ability they have to do that is not impacted by yesterday’s proclamation.”India’s technology industry body, Nasscom (National Association of Software and Service Companies), the main trade group for India’s IT and software services sector, also voiced concern, warning that abrupt changes would disrupt business continuity and unsettle professionals, particularly given the one-day deadline for implementation.The Trump administration also rolled out the long-promised ‘Gold Card’, a $1 million fast-track for wealthy foreigners to live and work in the States, which officials said could possibly replace the current Green Card programme.US commerce secretary Howard Lutnick made the announcements while speaking to the press at the signing ceremony by President Trump in Oval Office. He said that the move would ensure that US companies hire more American talent, while the less valuable foreign workers are sent back to their home countries. He added: “Train Americans. Stop bringing in people to take our jobs.”The administration declared the new rule will apply from September 21 for 12 months, after which it will expire unless extended. On the Gold Card, Lutnick said it would replace the EB-1 and EB-2 visa categories, which allow entry for highly skilled professionals. He said the administration was “going to stop doing that” in relation to the existing Green Card system, adding: “We’re going to only take extraordinary people at the very top.” Trump summed it up as “only successful people.”In his proclamation, Trump alleged “systemic abuse” of the H-1B visa system, particularly by IT outsourcing firms, and called the misuse a “national security threat.” The proclamation added: “Further, the abuse of the H-1B visa program has made it even more challenging for college graduates trying to find IT jobs, allowing employers to hire foreign workers at a significant discount to American workers.”The H-1B visa programme allows US employers to hire foreign workers in specialty occupations. As of 2024, Indians account for more than 70% of H-1B visa holders in the US.Reacting to the US move, India’s Ministry of External Affairs said the government was reviewing the measure and warned that it was “likely to have humanitarian consequences by way of the disruption caused for families.” It expressed hope that these would be “addressed suitably by the US authorities.”According to official sources, all Indian diplomatic missions have been instructed to “extend all possible help to Indian nationals who are travelling back to the US in the next 24 hours or so” to meet the deadline of implementation of the new rule.The MEA statement, which didn’t criticise or condemn the move by the US side, noted that the “full implications of the measure are being studied by all concerned.” It added that Indian industry had already put out an initial analysis “clarifying some perceptions related to the H-1B program.”The ministry stated that “industry in both India and the US has a stake in innovation and creativity” and said it could be expected to consult on the best way forward.The statement underlined that “skilled talent mobility and exchanges have contributed enormously to technology development, innovation, economic growth, competitiveness and wealth creation in the United States and India.”It added that policymakers would assess the recent steps “taking into account mutual benefits, which include strong people-to-people ties between the two countries.”Nasscom, meanwhile, expanded on its concerns, saying that adjustments of this nature could “have ripple effects on America’s innovation ecosystem and the wider job economy.” It noted that Indian nationals on H-1B visas, as well as India’s technology service companies, would be directly impacted as business continuity for onshore projects faced disruption.The association pointed out that Indian IT firms have been steadily reducing their reliance on H-1B visas by increasing local hiring in the US, and that these companies follow all governance requirements, pay prevailing wages, and contribute to the American economy through taxes and partnerships with academia and startups. “The H-1B workers for these companies by no means are a threat to national security in the US,” Nasscom said.It also flagged the abrupt deadline as a major concern, arguing that a one-day timeline created “considerable uncertainty for businesses, professionals, and students across the world.” Policy changes of this scale, it added, should be rolled out with transition periods to minimise disruption.Nasscom stressed that “high-skill talent will remain central to sustaining America’s innovation leadership and long-term economic strength,” especially in areas such as AI and frontier technologies. It said it would continue to monitor developments, consult with stakeholders, and seek clarity on the discretionary waiver process to be administered by the Department of Homeland SecurityDuring his first term, too, Trump had imposed restrictions on the programme, suspending the entry of certain foreign workers. The uncertainties were looming large as Trump had expressed that his views on the programme had not changed.Earlier this month, India defended the H-1B visa programme as a cornerstone of its partnership with the US even as the scheme came under sharper attack in American political debates.“The mobility partnership between India and the United States is an important pillar of our relationship. It supports technology collaboration, economic collaboration, innovation, emerging technologies and financial cooperation. We value it, as it brings mutual benefit to both sides,” Ministry of External Affairs (MEA) spokesperson Randhir Jaiswal had said.He had also said that New Delhi was still in dialogue with Washington on mobility issues.The visa debate comes against a backdrop of already strained bilateral ties between India the US, after Washington imposed tariffs of up to 50% on Indian imports, half of which were so-called reciprocal tariffs, while the rest was punishment for buying Russian oil.Besides tariffs, the Trump administration has also visibly aligned in favour of Pakistan, even inviting Pakistani army chief Field Marshall Asim Munir for a White House lunch.There had been signs of a thaw earlier this week when President Trump called Prime Minister Narendra Modi with birthday greetings, coinciding with the resumption of trade talks. But the goodwill seemed to have been short-lived. Within days, the US revoked the sanctions waiver for Iran’s Chabahar port, a project operated by India as a key regional strategic connectivity hub, and then announced the steep new H-1B visa fee that would make the programme financially unviable for most employers.Meanwhile, the US is also debating a proposal, Halting International Relocation of Employment (HIRE) Act, introduced by Republican Senator Bernie Moreno of Ohio, aims to reduce outsourcing by US companies. The bill proposes a 25% excise tax on payments to foreign employees and would bar firms from claiming such expenses as tax-deductible.The principal opposition Congress launched a scathing Prime Minister Narendra Modi over the visa fee hike. Lok Sabha Leader of Opposition Rahul Gandhi called Modi a “weak” prime minister, recalling his similar remarks from 2017 when H-1B concerns were not raised during a Modi–Trump meeting. “I repeat, India has a weak PM,” Gandhi posted on X.Congress president Mallikarjun Kharge accused Modi of reducing foreign policy to “Bear Hugs, Hollow Slogans, Concerts and getting people to chant “Modi, Modi”, saying such theatrics had failed to protect national interests. Referring to Modi’s recent birthday call with Trump, Kharge said, “Indians are pained by the return gifts you have received after the birthday call.”Kharge also linked the move with the proposed HIRE Act, the end of the Chabahar sanctions waiver, and steep US tariffs, which he said had already cost India an estimated Rs 2.17 lakh crore across ten sectors.Deputy leader in the Lok Sabha Gaurav Gogoi contrasted Modi with former Prime Minister Manmohan Singh, saying Singh had shown firmness in earlier diplomatic rows. “Now PM Modi’s preference for strategic silence and loud optics has become a liability for the national interest of India and her citizens,” he said.This article was originally published at 11:32 am on September 20 and has been updated to add Nasscom and India’s reaction. It was updated again at 8:50 am on September 21 with the White House’s clarifications on the new fee not being annual and not applying to existing visa holders.