The American dream, long pursued by Indian engineers and graduates, has suddenly become costlier. A new proclamation by US President Donald Trump has imposed a $100,000 annual surcharge on H-1B visa applications, sending shockwaves through India’s education and technology sectors.
The fee hike strikes hardest at early-career professionals. With median salaries for computer science graduates in the US ranging between $65,000 and $80,000, employers say the surcharge makes it unviable to sponsor young hires. Immigration experts warn approvals may now be limited to senior, high-value executives.
“Effectively, this closes the door for younger engineers who once formed the backbone of US tech companies,” said a New Delhi-based consultant. “The future Satya Nadellas or Sundar Pichais may never get the chance to begin that journey.”
India Bears the Brunt
Nearly 70% of all H-1B approvals go to Indian nationals, far ahead of other countries. Estimates suggest about 442,000 Indians currently hold these visas, mainly in software, data, and AI roles. Lawyers say the new levy acts as a filter, concentrating approvals among elite profiles at multinationals while squeezing out recruits from mid-tier outsourcing firms.
Education consultants in India report growing anxiety among families weighing the cost of US degrees with uncertain career pathways. IT giants, traditionally the largest H-1B sponsors, are now recalibrating staffing strategies. “Expect a pivot to offshore delivery hubs in Bengaluru, Hyderabad, and even Mexico,” noted a Mumbai-based strategist.
A Gold Card for the Wealthy
In contrast, Trump has unveiled a “Gold Card” programme for wealthy foreigners. Those donating $1 million individually, or $2 million corporately, can secure expedited immigrant visas. Critics call it a system skewed toward the rich.
“This is meritocracy turned on its head,” said a Washington policy analyst. “The message is clear — the middle class faces barriers, while the wealthy can buy their way in.”
The administration defends the move citing job data. A Federal Reserve Bank of New York study showed unemployment rates of 6.1% among computer science graduates and 7.5% among computer engineering graduates aged 22–27 — double the rates in some non-technical fields. Underemployment, too, was high at over 16%.
Officials argue the US produces enough technical graduates and must prioritise domestic hiring. But industry leaders caution that layoffs and restructuring in 2023–24, coupled with AI-driven changes, have already reshaped demand. Companies still require talent but may now prefer to keep it offshore.
The H-1B pipeline has historically powered both corporate America and Indian aspirations. It gave US firms cost-efficient talent and helped create communities of Indian origin that flourished across industries. Analysts warn that shutting this route will choke the next generation of global leaders.
“A country that once opened its doors to talent is now signalling that opportunity is for the wealthy, not the aspiring,” said a senior Indian IT executive.
The Great American Dream Now Carries a Steep Price Tag added by Sridhar P on
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