How Trump’s H-1B fee hike could affect US healthcare system

**How Trump’s H-1B Fee Hike Could Affect the US Healthcare System**
*By Akash Pandey | Sep 20, 2025, 05:03 PM*

The Trump administration has announced a staggering increase in the annual fee for H-1B visas, raising it by $100,000. This drastic move is expected to have severe implications for the US healthcare system, where over 30% of medical residents are international graduates.

Currently, around 10,000 out of 43,000 residency positions are occupied by H-1B visa holders. With the new fee hike, hospitals may find it financially unfeasible to sponsor these visas for residents earning an annual salary of approximately $55,000. This could intensify the existing staffing shortages and ultimately compromise patient care.

**Staffing Crisis: Visa Costs Surge, Risking Patient Care**

Previously, H-1B visa fees were less than $5,000. Commerce Secretary Howard Lutnick commented on the change, saying, “No longer will you put trainees on an H-1B visa — it’s just not economic anymore.” The increase poses a significant challenge to hospitals that rely on international medical graduates to fill crucial residency roles.

**Application Impact: Program Now Feasible Only for High-Value Roles**

The policy raises costs so substantially that the H-1B program may now only be viable for high-value roles. It remains unclear whether the $100,000 fee will be charged upfront or on an annual basis. While visa quotas remain unchanged—65,000 for regular applicants and 20,000 for advanced degree holders—officials expect a sharp decline in applications due to the prohibitive costs.

**Business Impact: IT Firms Likely to Be Most Affected**

India, which accounted for 71% of H-1B approvals last year, stands to be heavily impacted. Major IT firms like Infosys, TCS, and Wipro, which send large numbers of junior and mid-level engineers to the US, may face significant challenges under the new fee structure.

To illustrate, Amazon leads with 10,044 H-1B visa holders, followed by TCS (5,505), Microsoft (5,189), Meta (5,123), Apple (4,202), Google (4,181), Deloitte (2,353), Infosys (2,004), Wipro (1,523), and Tech Mahindra Americas (951).

**Opposition Response: Policy Draws Criticism**

The fee hike has sparked criticism from US lawmakers and immigration advocates. Congressman Raja Krishnamoorthi described the policy as “reckless,” warning that it could cut the US off from high-skilled talent essential for innovation and job creation.

Ajay Bhutoria, former advisor to President Joe Biden, cautioned that the increase might “crush small businesses and start-ups reliant on diverse talent” and push skilled workers to seek opportunities in Canada or Europe. This, he warned, could weaken America’s competitive edge in the global market.

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The $100,000 H-1B visa fee hike represents a significant shift in immigration policy with far-reaching consequences, particularly for the US healthcare and IT sectors. Its full impact remains to be seen but is expected to challenge both employers and skilled foreign workers across the country.
https://www.newsbytesapp.com/news/world/us-healthcare-braces-for-impact-as-trump-hikes-h-1b-fee/story