White House Defends US$100,000 H-1B Fee in Court, Citing ‘Fraud’; Indian IT Firms Alarmed

The Times of India’s Washington-desk story on 24 October thrust an extraordinary policy battle into the spotlight: the Trump administration is preparing to fight multiple lawsuits challenging its new US$100,000 fee on each initial H-1B petition. White House Press Secretary Karoline Leavitt told reporters the government must act because “the system has been spammed with fraud,” arguing that the steep levy is lawful and protects American workers.

Indian nationals account for roughly 70 % of H-1B approvals. A six-figure surcharge, payable on top of prevailing processing and anti-fraud fees, threatens to upend the business models of Indian IT services giants and US start-ups alike. Nasscom estimates total compliance costs for a 250-person onsite project team could soar by US $25 million per year, prompting some firms to reconsider project viability or shift work offshore.

The US Chamber of Commerce, tech trade groups and a coalition of universities have sued in Californian and D.C. federal courts, arguing the fee violates the Immigration and Nationality Act’s ‘cost-recovery’ provisions. Legal scholars say the administration will have to demonstrate that US$100,000 reflects genuine processing expenses—a high bar.

For corporate mobility teams the immediate action points are to freeze non-critical H-1B filings, pivot to L-1 intra-company transfers where feasible and intensify remote-delivery models. Start-ups courting Indian AI talent fear they will be priced out; several are exploring Canada’s new ‘Tech Talent Strategy’ as an alternate path.

Indian policy-makers are watching closely. A senior MEA official told reporters India will raise the issue at the next Trade Policy Forum, warning that punitive visa fees could undermine bilateral tech collaboration. Until the courts rule—potentially by early 2026—uncertainty will hang over thousands of high-skilled Indians planning a U.S. assignment.