With uncertainty surrounding the H-1B visa fee, some U.S. businesses unsure how to move forward

Kishore Khandavalli, a successful entrepreneur based in Dallas, started his career in the U.S. on an H-1B skilled foreign worker visa. Over the years, he has built a software consulting company with nearly half of his 380 employees holding H-1B visas. Khandavalli has cited a skills gap in the market as the reason for hiring foreign workers, stating that there is a lack of available U.S. talent, especially in emerging technologies.

However, Khandavalli faced a setback when President Trump announced a significant increase in the H-1B visa fee in September 2025, raising it from around $215 to $100,000. This move was met with opposition, and on June 8, a federal judge invalidated the White House’s $100,000 fee policy in response to a lawsuit filed by 20 states. The judge ruled that the exorbitant fee was essentially a tax and lacked statutory authorization.

The decision came as a relief to Khandavalli, who had refrained from hiring new foreign workers following the implementation of the new fee. He estimated that he would have lost around $1 million annually due to the increased cost. With a significant portion of his business relying on workers from India, where the majority of H-1B visa holders originate, Khandavalli’s concerns were justified.

In light of these developments, Khandavalli remains cautious about potential future changes to the visa program. The Trump administration is appealing the court’s decision to remove the $100,000 fee, raising uncertainty for businesses like Khandavalli’s. He fears that additional barriers to the visa could force him to outsource work overseas, jeopardizing both his company and the pipeline of skilled foreign workers and American businesses that rely on the H-1B program.

Meanwhile, in India, aspiring professionals like doctoral student Ravi Bushan are reconsidering their plans to work in the U.S. due to the evolving visa regulations. Bushan, who once dreamed of a career in America, is now exploring alternative options in response to the changing immigration landscape.

As the future of the H-1B program remains uncertain, Khandavalli emphasizes the importance of affordability for businesses to retain talent and drive innovation. Without a sustainable visa program, he fears that skilled individuals may seek opportunities elsewhere, posing a threat to both the workforce and technological advancement in the coming years.