Indians key to AI boom: US lawmakers urge Trump to drop $100,000 H-1B fee

UPDATED: Nov 1, 2025 04:01 IST

A group of US lawmakers have called on President Donald Trump to reconsider his recent proclamation on H-1B visas, warning that the new USD 100,000 fee and other restrictions would damage both America’s AI technological leadership and its strategic partnership with India.

In a letter sent on Thursday, Representatives Jimmy Panetta, Ami Bera, Salud Carbajal, and Julie Johnson urged Trump to suspend his September 19 order, titled “Restriction on Entry of Certain Nonimmigrant Workers.” The proclamation introduced steep new fees and limits on H-1B petitions, a move that lawmakers say undermines America’s innovation ecosystem, the news agency PTI reported.

“As members of a recent delegation to India, we recognise the importance of the H-1B programme not just to the United States economy, national security, and competitive advantage, but also to our relationship with India,” the lawmakers wrote.

The letter warned that the restrictions would discourage high-skilled talent, particularly from India, which accounted for 71 percent of all H-1B visa holders last year.

“Indian nationals, who make up the largest share of H-1B recipients, are central to US leadership in information technology and artificial intelligence,” the lawmakers said. “At a time when China is investing aggressively in AI and advanced technologies, we must continue to attract the world’s best talent.”

They described the H-1B programme as a “cornerstone of US competitiveness” in science, technology, engineering, and mathematics (STEM), adding that H-1B professionals boost innovation, patent production, and business formation, complementing rather than displacing American workers, PTI reported.

Congressman Jimmy Panetta emphasised that the visa programme’s value goes far beyond labour needs.

“The H-1B visa programme is an important part of why the United States continues to lead in technological innovation, and is needed now more than ever with the recent sharp rise of artificial intelligence,” he said.

The lawmakers cautioned that the new USD 100,000 fee could restrict access to only large corporations, cutting out startups and research institutions that rely on global expertise.

“The programme should be enhanced and increased, not limited to a select number of corporations that can pay exorbitant amounts of money,” Panetta added.

The letter also stressed the broader diplomatic stakes, noting that a weakened visa policy could strain ties with India, one of America’s closest democratic allies in the Indo-Pacific.

“In the case of India, attracting this talent reinforces our strategic partnership with a key democratic partner,” the lawmakers wrote, underscoring that Indian-Americans and other H-1B holders enhance local economies, academic institutions, and civic life.

“Preserving access to the H-1B programme is not simply about filling jobs,” the lawmakers concluded. “It is about securing US leadership in the industries that will define global power in the 21st century.”

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With inputs from PTI.

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