A new development has surfaced in the recent H-1B visa matter. In a new notice, it has been stated that doctors are exempted from the newly introduced $100,000 hike in the H-1B visa application fee. According to a statement reported by Bloomberg, White House spokesperson Taylor Rogers said, “The Proclamation allows for potential exemptions, which can include physicians and medical residents.” The clarification came after hospitals and medical groups raised concerns that the steep application cost would worsen staff shortages.

Why H-1B visa program is crucial for US healthcare

The H-1B visa programme is considered vital for the U.S. healthcare sector, as many hospitals rely on foreign-trained doctors to serve remote and underserved regions. Several health systems depend on these visas to bring in medical residents and specialists, especially in areas that face challenges in attracting U.S.-trained professionals.
According to federal data compiled by the health research group KFF, more than 76 million Americans currently live in areas officially designated as short of primary care doctors.

Many medical experts warn that the increased visa fee could shut the door on highly trained physicians. American Medical Association (AMA) President Bobby Mukkamala, a Michigan-based head and neck surgeon, cautioned that the hike “risks shutting off the pipeline of highly trained physicians that patients depend on, especially in rural and underserved communities.”

He said that international medical graduates are “a critical part of our physician workforce.” Federal immigration records show that leading institutions such as Mayo Clinic, Cleveland Clinic, and St. Jude Children’s Research Hospital are among the top sponsors of H-1B visas. Mayo Clinic alone holds over 300 approved H-1B visas, meaning the proposed hike could add millions in extra labour costs for such institutions. On September 19, President Donald Trump signed a proclamation introducing a $100,000 fee on H-1B visas and restricting the entry of certain non-immigrant workers.

The administration defended the move, saying the fee would ensure that only “extraordinarily skilled” professionals are granted entry, while discouraging companies from hiring foreign workers over American employees. Commerce Secretary Howard Lutnick called it a “necessary correction,” arguing that earlier visa policies allowed individuals with below-average wages, often dependent on government support, to secure entry. He said the new rules would weed out the “bottom quartile” of applicants and generate over $100 billion in revenue for the U.S. Treasury. According to President Trump, these funds would be used to reduce national debt and lower taxes.

H-1B fee hike: Who is impacted

The White House clarified that the $100,000 charge applies only to new H-1B petitions filed on or after September 21, and applications submitted before that date will remain unaffected. Officials also confirmed that the fee is a one-time payment, not an annual charge. The new H-1B visa fee has caused panic, especially in India, whose nationals made up 71% of holders in 2024. Many workers rushed to the U.S., confused by the sudden change. For years, the programme has brought top Indian talent into the U.S. workforce.

India’s $250-billion IT industry, led by Infosys, Wipro, Cognizant, and TCS, relies heavily on H-1B visas to deploy engineers and developers for U.S. projects. With visas valid for three years and renewable up to six, the $100,000 fee could make it too expensive to retain talent, many of whom already face long waits for Green Cards. Companies may cut opportunities, affecting India’s global tech edge and creating uncertainty in the U.S. tech sector.

Trump says “big tech loves the idea,” but IT shares fell 2–5% after the announcement. Critics warn it could limit talent mobility and innovation, while supporters say it protects American wages. The White House said exemptions may apply in the national interest. Doctors and medical residents could be exempt, Bloomberg reported. Trump also called H-1B abuse a security threat, but medical experts fear the policy may worsen U.S. healthcare shortages.