By Tahmina Watson
On Sept.19, President Donald Trump signed a proclamation imposing a staggering $100,000 fee on each new H-1B petition, an overnight policy shift that has upended the immigration landscape. This unprecedented cost will effectively price out most Indian citizens and small to mid-sized U.S. employers from the H-1B program, choking the flow of skilled talent between the two nations.
Just days later, India dispatched its highest-level delegation to Washington, D.C., for trade negotiations. This moment demands bold action: it is time for the United States and India to adopt a long-overdue solution and include India in the E-2 visa treaty program.
The E-2 visa, created under the Immigration and Nationality Act of 1990, allows nationals of treaty countries to invest in and actively manage U.S. businesses. This visa category has consistently proven to be a catalyst for entrepreneurship, foreign direct investment (FDI), and job creation across the country.
Despite India’s status as one of the world’s largest economies and a thriving hub for innovation, its citizens remain excluded from this pathway because no qualifying treaty exists. As a result, Indian entrepreneurs and investors face limited, unpredictable, and now prohibitively expensive routes, including the newly announced $100,000 price tag to the H-1B visa and the oversubscribed EB-2 and EB-3 green card categories.
The EB-5 visa, which requires $800,000–$1,050,000 in capital and years of processing, and the newly announced Trump Gold Card of $1 million, $2 million and $5 million options are also uncertain at this time. However, E-2 investments often start around $100,000 and allow for the rapid launch of job-creating ventures. The visa is renewable indefinitely as long as the enterprise continues operating, providing business owners with predictability and stability.
There are mutual economic gains for both countries.
For the United States:
- Attract immediate foreign direct investment (FDI) into local economies.
- Drive job creation in sectors ranging from technology startups to manufacturing.
- Demonstrate that America remains open for business, even in the wake of restrictive H-1B changes.
For India:
- Create a reliable, scalable pathway for entrepreneurs and investors to launch U.S. operations.
- Strengthen economic ties with one of its largest trading partners.
- Offer relief to Indian nationals now priced out of H-1B sponsorships.
READ: From startups to small firms: H-1B fee hike sparks hiring crisis (
The $100,000 H-1B fee is not just another policy change, it is a wake-up call. If unaddressed, it risks stifling innovation, deterring Indian talent, and pushing investment to competing markets. Adding E-2 eligibility for Indian nationals during the current bilateral negotiations is a timely, actionable solution that would yield lasting economic benefits and reinforce the U.S.-India strategic partnership.
As anxiety spreads across businesses and talent pools, decisive leadership on talent mobility would provide a powerful signal that both nations are committed to safeguarding transnational business and innovation.
The U.S.-India relationship is not merely a bilateral priority-it is a global one. How we respond today will shape economic opportunity and innovation for generations to come.
(Tahmina Watson is an immigration lawyer based in Seattle, founder of Watson Immigration Law, host of The Startup Visa® Podcast, and author of The Startup Visa: US Immigration Visa Guide for Startups and Founders.)