H-1B Visa Trends: What Over 70% Indian Beneficiaries Mean for Business Investment and Talent in Oman
President Donald Trump announced on Friday that the federal government will impose a $100,000 annual fee on H-1B visas issued to skilled foreign workers, marking a major reform of the U.S. temporary employment visa program. This move is likely to significantly impact the technology sector, which depends heavily on skilled workers from India and China.
Since taking office in January, Trump has pursued a broad crackdown on immigration, including measures to restrict certain types of legal immigration. The overhaul of the H-1B visa program represents the administration’s most prominent effort to date to reshape temporary work visas. Commerce Secretary Howard Lutnick emphasized the goal of “training Americans” and discouraging the hiring of foreign workers who “take our jobs.”
The announcement has sparked concern within the tech industry, which had contributed millions of dollars to Trump’s campaign. Major companies such as Microsoft, JPMorgan, and Amazon advised their H-1B visa holders to remain in the U.S. and urged those outside the country to return before the new fees take effect at midnight on Saturday (0400 GMT on Sunday). JPMorgan’s legal counsel, Ogletree Deakins, cautioned employees against international travel until further guidance is provided.
Critics of the H-1B program, including many American tech workers, argue that it suppresses wages and sidelines domestic talent. Conversely, supporters, including Tesla CEO Elon Musk—an H-1B visa holder himself—claim the program is essential for filling talent gaps and maintaining U.S. competitiveness. The executive order signed by Trump highlighted instances where employers exploited the program to undercut wages, disadvantaging American workers.
Data show that the number of foreign workers in science, technology, engineering, and mathematics (STEM) fields in the U.S. more than doubled between 2000 and 2019, rising to nearly 2.5 million, even as overall STEM employment increased by only 44.5%.
Experts warn this fee hike could deter global talent. Deedy Das, a partner at venture capital firm Menlo Ventures, tweeted that the policy “creates disincentive to attract the world’s smartest talent” and risks undermining U.S. innovation and economic growth. The cost increase may particularly burden smaller tech firms and startups. Details on fee administration are still under consideration, though Lutnick said the fee would apply annually over the three-year visa duration. Analysts warn companies might shift high-value work overseas, weakening the U.S. position in the competitive artificial intelligence race with China.
India was the largest recipient of H-1B visas last year, accounting for 71%, followed by China with 11.7%. In 2025, companies like Amazon, Microsoft, and Meta Platforms secured thousands of H-1B approvals. Lutnick stated that major companies support the new $100,000 annual fee, asserting they have been consulted.
Following the announcement, shares of IT services firm Cognizant, which employs many H-1B workers, dropped nearly 5%, while Indian tech firms Infosys and Wipro saw declines between 2% and 5%.
Legal experts have questioned the fee’s legality. Aaron Reichlin-Melnick, policy director of the American Immigration Council, noted that Congress has only authorized fees to cover application processing costs, not punitive charges. Former senior officials Doug Rand and Tom Jawetz also warn the policy is likely to face legal challenges, describing it as an improper use of regulatory authority.
The H-1B program annually issues 65,000 visas to specialized foreign workers, plus 20,000 additional visas for holders of advanced degrees. Employers typically bear nearly all associated fees. Visas are granted for three to six years.
Also on Friday, Trump signed an executive order establishing a “$1 million gold card” path to U.S. permanent residency for individuals who can afford the fee, raising further concerns about the policy’s legality and fairness.
This new fee partly settles an intra-conservative debate over the H-1B program. Immigration hard-liners argue it harms American workers by allowing companies to hire foreign workers at lower wages, while business leaders in tech emphasize the program’s role in sustaining U.S. competitiveness. With this proclamation, President Trump has sided with those seeking to make the visa process more restrictive.
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The U.S. decision to impose a $100,000 annual fee on H-1B visas signals a potential tightening of access to global tech talent, which could disrupt technology firms that rely heavily on skilled foreign workers, including those from India and China. For businesses in Oman, this creates both an opportunity to attract highly skilled talent potentially displaced from the U.S. market and a risk of increased competition from American firms forced to offshorize or scale back innovation efforts. Smart investors and entrepreneurs in Oman should consider leveraging this shift to enhance local tech ecosystems and talent development to capitalize on a global talent redistribution.
