The sudden hike in H-1B visa fees has already created a panic among professionals and smaller firms, many of whom say they cannot afford the steep costs. While some major tech giants are welcoming the change, workers from India and other countries who depend heavily on the program are still reeling from the impact. Just as they begin to grapple with this burden, another unexpected policy decision from the U.S. has added to the uncertainty.
Republican Senator Chuck Grassley on Wednesday urged the Department of Homeland Security (DHS) to halt the issuance of work permits for student visa holders, arguing they “compete against Americans.” His comments add to the mounting scrutiny over U.S. visa programs, coming just as professionals and companies are grappling with the steep hike in H-1B fees.
Grassley said, “DHS needs 2 stop issuing work authorizations 2 student visa holders who compete against Americans. It’s in direct violation of law & puts USA at risk of tech and corporate espionage. I sent a letter 2 DHS Scty Noem asking her to end work authorizations 4 foreign student visa holders,” in a post on X, quoted by HT.
If implemented, the proposal would also affect Optional Practical Training (OPT), a program that currently lets international students stay on and work in the U.S. for about one to three years after earning their degree.
The decision could hit Indian students particularly hard, as they make up the largest group pursuing higher education in the United States.
Data from the U.S. embassy shows that in 2024, India overtook all other countries as the leading source of international students in America, with more than 331,000 enrolled, the highest since the 2008–09 academic year.
The embassy also noted a 19 percent rise in Indian graduate student enrollment, bringing the total close to 200,000. Yet, U.S. immigration data indicates that international student arrivals in July this year fell sharply compared to the same period in 2024.
Experts suggest that new enrollments at U.S. universities could drop by nearly half in the fall of 2025, with Indian students expected to see a similar decline of around 50 percent.
READ: India pushes US for easier access for workers after H-1B row (
Indian government figures show that in 2023, about 465,000 Indian students were studying in the United States, the largest share among the 1.3 million pursuing education overseas. Canada, the UK, and Australia followed as the next most popular destinations.
The Indian government had been expected to raise concerns about worker access following the H-1B visa fee increase during upcoming trade talks. Now, this latest move could also enter those discussions. President Donald Trump’s broader immigration measures have already led many Indian students to reconsider their pursuit of the “American Dream.”
The Trump administration has maintained that the H-1B visa fee hike aims to ensure foreign workers are recruited only for highly skilled positions that cannot be filled by Americans. Officials have also argued that the H-1B program can suppress wages and disadvantage qualified U.S. workers, framing the policy as part of broader efforts to tighten visa rules. Government data shows that in 2024, Indian nationals received the largest share of H-1B visas, accounting for 71 percent of approved applicants.