Impact of H-1B Visa Fee Hike on Indian IT, Engineers, and Medical Graduates: What Next?

Impact of H-1B visa fee hike on Indian IT engineers and medical graduates working in the USA

In shocking news, the U.S. president has dropped the bomb as he has announced that the H-1B visa fee is now raised to $100,000 (around ₹88 lakh). However, it is important to note that this new H-1B visa fee is not for the old visa holders or those who want to renew their visa. This new visa fee which will come into account from September 21, 2025, has left Indian students and professionals shocked. Also, it has been clarified by the White House that this is a one-time fee and not annual. However, the new H-1B visa fee still poses challenges for the students who want to work in America after graduation.

Through this write-up, we will analyse the H-1B visa fee impact on Indian STEM students, and we also explore alternatives in Canada and the UK.

H-1B Fee Hike: Key Highlights

Point Details
Old Fee $4,000 to $10,000
New Fee (2025) One-time $100,000 for new applicants
Effective Date September 21, 2025
Exemptions
  • Existing H-1B holders
  • Renewals
  • 2025 lottery winners
Impacted Groups
  • Indian IT
  • Engineers
  • MBA graduates
  • Medical students
Alternatives
  • O-1 Visa
  • L-1 Visa
  • Canada PGWP
  • UK Graduate Visa

Impact on Indian IT Professionals and Engineers

The new H-1B visa fee is all set to hit the Indian job applicants hard. Because, according to data 71% of visas in 2024 were gone to Indians. Now:

  • H-1B fee increase for Indian IT professionals will lead to the reduction in sponsorships by big tech giants like TCS, and Infosys.
  • US H-1B policy for Indian software engineers will prioritize top-tier talent.
  • Also, students are now advised to focus more on AI, and data science.

MBA Graduates: Short Timelines, High Risk

MBA students are in big trouble, because they have to face much shorter guidelines when compared to the STEM graduates. The H-1B fee hike for Indian MBA graduates in the USA has already created hiring hesitations. Moreover, many experts have suggested that Indian students should now consider Canada or the UK over the US in 2025, simply because both countries are cheaper.

 

H-1 B Visa Fee Impact on Medical Graduates and Healthcare Aspirants

  • What Indian medical graduates need to know about H-1B visa changes: If you are a medical student, then it is important to note that hospitals may now sponsor fewer fresh graduates.
  • Indian doctors’ US visa options after H-1B rule change now includes: 
    • J-1 waivers
    • EB-2 NIW
    • O-1 visas.
  • Also, the students are suggested to opt for the employer green card sponsorships or shift to Canada for more affordable options.

Alternatives

The H-1B fee hike has forced many students to look for other alternatives. And, the UK and Canada have come forward as the major alternatives. Here is why: trends Indians show increasing interest in Canada and the UK.

Easiest countries for Indians to get post-study work visas include: Canada and the UK. Canada which involves the 3-year PGWP should be your first option as it is affordable and much more stable than the U.S. On the other hand, the UK involves a 2–3-year Graduate Route and it is also much more affordable than the U.S.

Checklist for Indian Students in 2025 due to H1-B Fee Hike 

Things You Can Do:

  • Explore O-1 and L-1 visas as alternatives.
  • Seek US visa consultancy for Indian students 2025 for updated guidance.
  • Keep a backup: Canada or UK study-work pathway.
  • Focus on emerging skills like AI, and robotics.
  • Save emergency funds in case relocation is needed.

FAQs

Q1. What is the exact H-1B visa fee impact on Indian STEM students?
The hike in visa Fee will potentially raise the sponsorship cost to $100K and this will discourage the smaller firms from hiring STEM graduates. Hence, if you want to be selected you have to be in the top-tier of your field.

Q2. How does the H-1B fee hike affect Indian MBA graduates in the USA?
MBA graduates are more in trouble than the STEM students because they get the shorter OPT periods, and hence very few firms may risk sponsoring them under the new expensive rules.

Q3. What Indian students can do after the H-1B $100K fee?

  • Students can pursue the O-1 visa,
  • Opt for the L-1 transfers
  • Explore Canada and UK work visa pathways.

Q4. Is Canada a better choice than the US now?
Yes, Canada is a much better choice than the US because it comes with lower fees and easier PR here makes it much more attractive than the U.S.

Conclusion

All in all, The H-1B visa fee increase 2025 has come as a major setback in the life for the Indian students who want to pursue MBA, and MBBS in the U.S. This higher H-1B fees has forced students to consider going to Canada and the UK. Lastly, the H-1B visa rules for Indian students are set to bring new challenges, but students can tackle it by being smarter and making the right decision at the right time.

About the Author

Sparsh Sharma

I am a passionate education content writer with over 5 years of experience crafting insightful, engaging, and impactful content for the education sector. With a deep understanding of modern teaching methodologies, learning trends, and the evolving needs of students and educators,

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