The White House announced on Monday that doctors might be exempt from the new $100,000 fee on high-skilled H-1B visa applications introduced by the Trump administration.
In a statement to Bloomberg News, White House spokesperson Taylor Rogers mentioned, “The Proclamation allows for potential exemptions, which can include physicians and medical residents.” This clarification came after concerns were raised by hospitals and medical groups about how the new fee could worsen existing staff shortages.
The H-1B visa program is essential for hospitals that rely on foreign-trained doctors, especially in rural areas where attracting U.S.-trained professionals can be challenging. Federal data from health research group KFF shows that more than 76 million Americans live in areas with a shortage of primary care doctors.
Bobby Mukkamala, President of the American Medical Association (AMA) and a head and neck surgeon, expressed his worries, stating that the visa fee could cut off access to highly trained physicians who are vital for patients, particularly in underserved communities. He emphasized that international medical graduates are a crucial part of the U.S. physician workforce.
Major healthcare institutions like the Mayo Clinic and Cleveland Clinic significantly sponsor H-1B visas, with Mayo alone having over 300 approved applications. The new fee could mean an enormous increase in costs for these organizations.
On September 19, President Trump signed the proclamation introducing the $100,000 fee and imposing restrictions on certain non-immigrant workers. The administration believes this fee will ensure that only “extraordinarily skilled” individuals come to the U.S., aiming to prevent companies from hiring foreign workers over American ones.
Commerce Secretary Howard Lutnick stated that the change was necessary to correct policies which allowed individuals with below-average earnings to enter the workforce, potentially leading to revenue over $100 billion for the U.S. Treasury. President Trump has argued that this revenue could help reduce the national debt and lower taxes.
The White House indicated that the $100,000 fee will only apply to new H-1B petitions filed after September 21. Applications submitted before this date will not be affected, and it is noted that the fee is a one-time payment rather than an annual charge.
The announcement has created anxiety among H-1B workers and their employers, particularly in India, where nationals make up about 71% of H-1B visa holders as of 2024. Many overseas workers are now rushing to return to the U.S., confused by the sudden policy shift. The H-1B program has long been a pathway for top talent from India to enter the U.S. job market.
India’s $250 billion IT sector, including major firms like Infosys and Wipro, heavily relies on this visa program to send engineers and developers to the U.S. The new fee could make it difficult for these companies to retain Indian professionals, many of whom already face long waits for green cards.
The repercussions of this change might not only affect individual careers but could also shrink opportunities for Indian professionals, threatening India’s competitive edge in the global tech arena. The U.S. technology sector, a significant employer of H-1B visa holders, is also facing uncertainty.
While President Trump maintains that “big tech loves the idea,” investors have reacted with caution, with shares of several IT services companies falling between 2% and 5% after the announcement.
Critics argue that the measure limits talent mobility and stifles innovation, while supporters claim it prevents wage suppression and encourages investments in training American graduates. A White House memo noted that information technology companies have been manipulating the H-1B system, negatively impacting American workers in tech fields.
The administration has stated that there may be case-by-case exemptions for certain professions in the national interest, with doctors and medical residents likely to be included, according to a Bloomberg reporter’s commentary.
While Donald Trump has accused companies of exploiting H-1B visas to suppress wages, medical professionals continue to voice concerns about the policy potentially restricting the flow of international talent into the U.S., exacerbating existing healthcare shortages.
