Overview

• President Trump’s policy imposes a $100,000 charge on new H‑1B petitions, which the White House clarified is a one‑time fee that does not apply to renewals.
• Homeland Security is drafting broader changes to the program, including revised cap‑exemption criteria, stricter oversight of third‑party placements, and heightened scrutiny of past violators, with publication reported for December.
• A viral TikTok showed anxious passengers deplaning after the announcement as reports described H‑1B holders and families racing to return to the U.S. within 24 hours to avoid potential disruptions.
• Market reaction has been uneven, with Indian IT firms such as TCS and Infosys seeing steeper stock declines than large U.S. tech peers, reflecting lower average H‑1B salaries at the Indian firms that make the fee proportionally heavier.
• More than 70% of new H‑1B approvals go to Indian nationals and roughly a third of H‑1B workers are in non‑tech sectors, fueling concerns about broader labor impacts as tech leaders highlight the program’s role in U.S. competitiveness.