JPMorgan economists have warned that the Trump administration’s steep hike in H-1B visa fees, from $10,000 to $1,00,000 for new applications, could cut as many as 5,500 work authorizations each month, as per a report by Bloomberg.

The move has sparked alarm in the United States technology sector, which relies heavily on skilled foreign talent.

Indian professionals likely to be most affected

Data shows computer-related roles made up nearly two-thirds of H-1B approvals in fiscal 2024, with roughly half tied to professional, scientific, and technical services. 

About 71 per cent of approvals went to Indian nationals, placing them at the highest risk from the new fee. Of the 141,000 petitions approved last year for new employment, nearly 65,000 were processed abroad, the applications most exposed to the six-figure levy.

Experts warn of systemic disruption

Loujaina Abdelwahed, senior economist at Revelio Labs, described the fee hike as “effectively equivalent to dismantling the H-1B system,” potentially eliminating up to 140,000 new jobs annually, about 10,000 per month—in US companies that depend on foreign talent. 

Bloomberg Economics notes the policy will likely favor high-paying roles in technology, finance, and healthcare while squeezing out lower-paid positions in fields like education. Existing H-1B employees remain unaffected, but the broader impact could include offshoring of roles that are no longer viable domestically.