NASSCOM Welcomes US Clarification on H-1B Fee Hike
The National Association of Software and Service Companies (NASSCOM) has expressed relief following the clarification issued by the U.S. Citizenship and Immigration Services (USCIS) regarding the proposed $100,000 H-1B visa fee.
The clarification, released on September 20, 2025, confirmed that the fee would not impact existing visa holders but would instead apply as a one-time charge on fresh petitions starting in 2026. This announcement eased concerns among Indian tech professionals and IT companies who had feared immediate disruptions to ongoing business operations.
In its statement, NASSCOM noted that the clarification addresses uncertainty regarding eligibility and timelines. It highlighted that the window until 2026 provides companies with adequate time to further invest in U.S. skilling programs and local recruitment.
“The industry is already investing more than a billion dollars in local hiring and training in the U.S. The number of local hires has increased significantly, reducing dependence on H-1B visas,” NASSCOM stated.
According to data cited by the association, H-1B visa approvals for the top India-centric IT companies declined from 14,792 in 2015 to 10,162 in 2024. Today, H-1B workers account for less than 1% of the total workforce of the top 10 Indian IT firms in the U.S.
NASSCOM emphasized that the H-1B program represents high-skilled worker mobility, not a pathway for low-cost labor. Salaries of H-1B workers are at par with local hires. They form just a decimal point of the overall U.S. workforce,” the statement said.
The industry body reiterated that predictable and stable skilled talent mobility frameworks are essential for sustaining competitiveness, advancing research, and strengthening the U.S.’s position in the global innovation economy.
While the fee hike from 2026 may add some cost pressures, the growing focus on local hiring and reduced dependence on visas indicates only a marginal long-term impact on the Indian IT sector.
NASSCOM concluded that the clarification brings certainty and allows Indian companies to continue contributing to U.S. innovation, economic growth, and talent development.
