US President Donald Trump has announced a controversial $100,000 fee for new H-1B visas, set to take effect in March 2026. This decision has raised concerns among corporate America, immigrant communities, and particularly Indian professionals, who make up a significant portion of H-1B visa holders. The fee aims to reduce what Trump describes as the "most abused visa" program and encourage companies to hire more American workers.

However, many economists and industry experts warn that this policy could have unintended consequences. They believe it may hinder innovation, lead to job offshoring, and prompt skilled workers to return to countries like India, which could strengthen its growing tech sector. The H-1B visa program, established in 1990, is crucial for bringing highly skilled immigrants to the US, especially in STEM fields, supplying engineers, doctors, and researchers to various industries.

Experts predict that the hefty fee could disrupt the tech and healthcare sectors, which are already facing labor shortages. It may also make US universities less appealing to foreign students who often transition to work in the US through H-1B visas. Jennifer Hunt, an economist at Rutgers, stated, "This misguided measure could shut down the H-1B program entirely. And if that happens, it’ll have a very detrimental effect on the economy as a whole."

Supporters of the H-1B program argue that foreign workers enhance productivity and innovation, ultimately benefiting American workers. A 2015 study indicated that foreign professionals contribute to salary increases for US-born workers. Conversely, restricting H-1B visas could lead companies to relocate jobs overseas, as many tech giants and startups rely heavily on H-1B visa holders.

The potential impact on the healthcare sector is also alarming, with immigration lawyer Karin Wolman warning, "The impact on health care alone will be devastating." With nearly 70% of H-1B visa holders coming from India, analysts foresee a significant return of skilled professionals to India, which could bolster its tech and AI industries.

Legal challenges to the new fee are anticipated, with lawyers arguing that it is excessive and lacks proper public input. If the fee remains, companies may expedite plans to move operations abroad, leading to a substantial return of Indian talent. Former Zensar CEO Ganesh Natarajan remarked, "The ‘American Dream’ for aspiring workers will be tough. Firms will simply do more work out of India, Mexico, and the Philippines."

In summary, while the fee may appeal to some immigration hardliners, the broader economic implications suggest it could harm the US job market and innovation landscape, while inadvertently benefiting India's burgeoning tech sector.