Trump renews $100,000 fee on H-1B visas: Nifty IT under pressure, sectoral index falls 0.7%

As per the latest business developments, Nifty IT index declined 0.7% on September 21 as US President Donald Trump has extended by a year the $100,000 fee on employers for bringing in foreign workers on H-1B visas, the White House stated.

In a presidential proclamation issued on Friday, Trump stated the 2025 decision to impose a $100,000 fee has led to a 92 per cent decrease in H-1B registrations by large IT outsourcing firms.

“An extension of the 2025 Proclamation will keep protect the economic and national security interests of the United States, improve labour market access for American workers and graduates, and ensure that employers recruit only the most highly-skilled and essential alien workers when needed in line with the original intent of the program,” Trump stated.

Indians stay the single largest beneficiary group of the US H-1B visa program.

At 11:30 am on September 21, Nifty IT was trading 0.6% softer at 28,680.35 with OFSS, Coforge, Wipro leading the losses by falling 6.6%, 2% and 1.71%, respectively.

The 2025 decision to levy the $100,000 fee has run into a legal challenge and the matter is before two different federal courts.

The 2025 order for a fee hike was set to expire this month. It did not apply to visas granted to foreign citizens already in the United States on student visas, who make up a large share of new H-1B recipients, or to renewals of current visas. The order additionally sets a 30-day deadline for the Secretary of Labour, acting through the Wage and Hour Division, to begin reviewing data from previously submitted labour condition applications.

The review will determine whether further action against sponsoring employers is warranted.

The President additionally issued a separate proclamation, tightening the scrutiny of H1-B visa applications through better inter-agency cooperation.

“The Order enhances program integrity in the H-1B visa program by improving interagency coordination and directing enhanced scrutiny of H-1B visa applications where there is a heightened risk that American workers would be laid off,” a fact sheet issued by the White House stated.  The Order directs the Secretary of State, the Secretary of Labour, and the Secretary of Homeland Security to consider petitioner employers’ recent or scheduled layoffs of similarly situated US workers when considering H-1B visa applications.

The H-1B nonimmigrant visa program was created to identify uniquely skilled and highly specialised foreign temporary workers to strategically supplement the United States economy, the US President stated in the executive order.   “Instead, the program has been widely abused by certain employers, third-party placement groups, and outsourcing firms to undercut and displace the supply of skilled United States labour,” Trump stated.