While U.S. Congressman Raja Krishnamoorthi has warned that a proposed $100,000 H-1B visa fee could drive jobs offshore, the policy is currently not in effect. A U.S. federal court vacated the fee in June 2026, and an appeals court denied the government’s request to reinstate it in July. Investors should monitor this situation as it impacts long-term workforce planning and operational costs for major Indian IT firms.
Indian-American Congressman Raja Krishnamoorthi has recently voiced concerns about the negative impact of a proposed $100,000 fee on H-1B visa applications. He argued that such a high cost would force U.S. companies to shift their operations offshore, as the expense of hiring foreign technical talent would become too burdensome. This would potentially reduce the number of skilled workers available for critical technology roles in the United States.
However, for investors and Indian IT companies, the current reality on the ground is different from this warning. As of August 2026, the $100,000 fee is not being collected. A U.S. District Court ruled against the policy on June 8, 2026, effectively vacating the fee. Following this, the U.S. government attempted to pause the court’s decision, but a First Circuit Court of Appeals panel rejected that request on July 24, 2026. This means that, for now, the fee cannot be imposed on visa applicants.
For major Indian IT service providers like Tata Consultancy Services, Infosys, Wipro, HCLTech, and Tech Mahindra, this legal status provides temporary relief from a significant potential cost. These companies rely on H-1B visas to send engineers and consultants to the U.S. to work on client projects. A $100,000 fee per visa would have drastically changed the cost structure of their U.S. operations, likely forcing them to adjust their business models or pass costs on to clients.
While the specific H-1B fee is currently blocked, the situation remains fluid. There are reports that the administration is considering applying similar fee structures to the Optional Practical Training (OPT) program, which allows international students to work in the U.S. after graduation. This adds a layer of uncertainty for companies that recruit heavily from U.S. universities.
The key monitorable for investors is the ongoing legal battle and any future attempts by the government to revive these fees or introduce them elsewhere. Companies may continue to face challenges regarding workforce planning and the ability to move talent between India and the U.S. until there is a final, long-term resolution in the courts. Market participants will be watching for any further policy announcements regarding visa regulations or shifts in the administration's approach to the OPT program.