US tightens H-1B rules again: How new fees and layoff scrutiny could affect Indian tech workers

The US has tightened H-1B rules with a $100,000 payment for certain new overseas hires, additional employer fees, layoff scrutiny and tougher enforcement, creating new hurdles for Indian technology workers and their employers.

The US H-1B visa programme is facing another round of changes, with higher costs for employers, closer scrutiny of layoffs and tougher checks that could affect Indian technology workers seeking to work in the country.

US government tightens H-1B visa rules all over again

President Donald Trump signed an executive order on 18 September directing the Departments of State, Labour, and Homeland Security to consider whether an H-1B sponsoring employer has laid off similarly situated US workers in the previous year, or is planning layoffs that could affect them.

The agencies have also been directed to coordinate with the Departments of Commerce and Education and the Small Business Administration for information on wages, employment and industry conditions.

For Indian professionals, one of the most significant changes is the continuation of a $100,000 payment for certain new H-1B workers entering the US from abroad. The 18 September proclamation extends the restriction for another year, until 21 September 2027. It applies to covered workers outside the US, with exceptions possible where the Department of Homeland Security determines that hiring is in the national interest.

The payment remains subject to legal challenges. Reuters reported that a federal judge had previously blocked implementation and that the government’s appeal was pending, meaning the practical position can change as litigation continues.

What other changes have been made?

Another proposed measure could add a $103,265 fee to H-1B cap-subject petitions. The Department of Homeland Security says the proposed fee would apply to 85,000 cap-subject petitions annually. It is a proposal, rather than a final rule, and is separate from the $100,000 entry payment.

There is also a new biometric-fee requirement. From 9 September, covered employers - those with at least 50 US employees, with more than half in H-1B or L-1 status - must pay a $4,000 9-11 biometric fee for covered H-1B extension petitions, including some extensions involving the same employer. The corresponding L-1 fee is $4,500.

The administration has separately proposed removing or changing the existing 60-day grace period that allows certain non-immigrant workers who lose their jobs to remain in the US while seeking new employment. Reuters reported that the proposal would require affected workers to leave sooner if they cannot secure another status or employment.

Enforcement is also becoming more intensive. The Department of Labour's Project Firewall focuses on investigations involving suspected displacement of US workers, inadequate recruitment and other H-1B violations. Penalties can include back wages, civil fines and debarment from the programme.

For Indian tech workers, the combined effect is not simply a higher visa bill. Employers may face greater scrutiny before sponsoring workers, while employees could have less flexibility after job losses. The exact impact will depend on which measures become final and how ongoing legal challenges are resolved.

About the Author

Trisha Bhattacharya is a Senior Content Producer at Livemint, with over two years of experience covering entertainment news from India and beyond. She spends her days tracking what’s trending, breaking down pop culture moments, and turning fast-moving entertainment stories into sharp, engaging reads that actually make people want to click — and stay. <br> She holds a Master’s degree in English Literature from Lucknow University, a background that shapes her love for layered narratives, strong voices, and stories that linger long after they’re told. Before joining Livemint, Trisha worked with India Today as an entertainment journalist and film critic. There, she reviewed films, covered industry news, and built a strong foundation in storytelling and cultural analysis. <br> Trisha enjoys working at the intersection of media, culture, and audience interest, always looking for fresh angles and formats. Films, shows, and music are not just her beat but her biggest passion — something that naturally reflects in her writing. Whether it’s cinema, streaming shows, music, or internet trends, she approaches every story with curiosity and intent. <br> Outside the job description, she’s unapologetically passionate about films, shows, and music — sometimes a little too passionate, if you ask her. That enthusiasm often spills into her work, adding personality, urgency, and a touch of chaos that keeps her writing alive. For Trisha, entertainment isn’t just a beat — it’s a language she speaks fluently.