A brief history of H-1B visa programme—From launch in 1990 to developments in 2025

Did you know that seven out of every 10 American H-1B visa holders are Indians? The US has significantly raised the H-1B visa programme application fee to $100,000 in order to protect US employment. The development comes under the protectionist Trump 2.0 administration at a time when the world’s largest economy is struggling against its weakening jobs market, many see the H-1B action as politically driven. Amidst all this, here is a brief history of the American H-1B programme, a lifeline to lakhs of Indian professionals. 

H-1B visa launch

The US created the H-1B visa programme under the Immigration Act of 1990, signed into law by then President George HW Bush. 

This law split the original H-1 visa into specialised visas like H-1B for “specialty occupations” that required a bachelor’s degree or higher. 

The H-1B visa was launched with an annual cap of 65,000, with an additional 20,000 reserved for applicants those holding higher degrees. 

The H-1B visa system would have various annual limits in place over the next more than three decades. 

H-1B visa in 1998

The annual cap was temporarily increased to 1,15,000 for 1999-2001 under then American President Bill Clinton in order to cater to rising demand for technology. 

2001-2003

The George W Bush administration raised the annual cap to 1,95,000 for the fiscal years 2001-2003.

2004

The cap was reduced back to 65,000 while the additional quota of 20,000 visas remained in force for those holding higher qualifications. 

A number of stricter norms would be introduced in the following years in light of rising demand in STEM fields and growing concerns about American worker displacement especially after the 2008 financial crisis.

Barack Obama era (2009-2017)

In 2009, the US enacted a rule that required any company that got bailout funds and wanted to hire foreign workers on H-1B visas to first prove that they were not replacing American workers with the H-1B workforce.

In the mid-2010s, the American government extended work authorisation eligibility to H-4 visa holders (spouses of H-1B workers), allowing them to work in the US under certain conditions.

Donald Trump era (2017-2021)

2017: An executive order focused on ‘buy American, hire American’ directed federal US agencies to review and strengthen H-1B rules, prioritising higher-paying and more skilled applicants.

Joe Biden era (2021-2024)

2021: The Biden administration reversed many Trump 1.0 restrictions and policies on H-1B visas, reducing application backlogs, streamlining the lottery system, and restoring work authorisation rights for H-4 holders.

Trump 2.0 Administration (2025-present)

2025: The Trump 2.0 administration issued a proclamation imposing a $100,000 application fee on employers sponsoring H-1B visas, citing the goal of promoting American worker skills.

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Here are answers to a few frequently asked questions (FAQs) on the coveted H-1B visa: 

Who qualifies for an H-1B visa?

The programme is to enable employers to deploy foreign workforce in the US for specialty roles.

A specialty occupation is officially defined as work that must require theoretical and practical application of a body of highly specialised knowledge with a bachelor’s degree or higher in a specialty field. 

How long can an H-1B holder stay in the US?

The H-1B visa comes with a standard maximum stay period of six years, typically with an initial grant and an extension. This period can be extended further under certain conditions. 

Are there any obligations that employers have to meet under H-1B rules?

Yes, they must file labour condition applications before filing H-1B petitions. They have to pay H-1B workers at least the required wage that varies on the basis of area of employment. 

What happens if an H-1B worker changes their employer?

An H-1B worker can change employers subject to certain conditions. There is an H-1B portability option that the new employer can exercise by filing a new H-1B petition. 

What happens when an H-1B worker’s employment ends?

In this case, the worker usually has a period of authorised stay (about two months) to either find a new employer to file for H-1B, change to another status, or prepare to exit the US. 

Can H-1B holders’ family members work?

H-1B workers’ spouses and unmarried children can get H-4 nonimmigrant status. They are allowed to study in the US but require special permissions to work there. 

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