H-1B Visa Fee: Possible Exemption for Doctors & Residents

The Trump administration signaled on Monday that it is weighing an H-1B visa fee exemption for doctors and medical residents, following sharp criticism from healthcare leaders who warned the policy could worsen America’s already fragile access to care in underserved communities.

The $100,000 H-1B application fee, announced earlier this month, sparked alarm across hospital systems, especially in rural regions where foreign-born physicians make up a large share of the workforce. A White House spokesperson, Taylor Rogers, confirmed that “the Proclamation allows for potential exemptions, which can include physicians and medical residents,” in an email to Bloomberg.

H-1B Visa Fee: A Lifeline for U.S. Healthcare

The H-1B visa program has long been an essential pipeline for doctors, particularly international medical graduates who often choose to practice in areas where U.S.-trained physicians are scarce. According to Bobby Mukkamala, President of the American Medical Association and a Michigan-based head and neck surgeon, these physicians are “a critical part of our physician workforce.”

Federal data highlights the urgency: over 76 million Americans currently live in regions officially designated as primary care shortage areas. For hospitals and healthcare providers in such regions, H-1B sponsorship is not optional but necessary for survival.

Financial Ripple Effects of the Proposed Fee

Healthcare leaders warned that a blanket $100,000 H-1B fee could cripple budgets. Major medical systems such as Mayo Clinic, Cleveland Clinic, and St. Jude Children’s Research Hospital rank among the top sponsors of H-1B visas. Mayo alone has more than 300 active approvals. At that scale, the proposed fees could have meant tens of millions in additional labor costs—funds that would otherwise support patient care and medical innovation.

With the possibility of an H-1B visa fee exemption for doctors, the healthcare sector is breathing a sigh of relief. Shares of HCA Healthcare rose 1.4% by mid-morning trading in New York, while Tenet Healthcare Corp jumped 3%, underscoring investor optimism that staffing shortages may not worsen under the policy.

H-1B Visa Fee: Wider Market and Corporate Reactions

While healthcare stocks gained, the uncertainty continues to rattle the technology and financial services sectors, which are heavily reliant on H-1B workers. Cognizant Technology Solutions closed down nearly 5%, and U.S.-listed shares of Indian tech giants Infosys and Wipro fell between 2% and 5%.

Corporate giants are scrambling to adapt. Microsoft has instructed H-1B and H-4 visa holders currently abroad to return to the U.S. before the September 21 deadline, while JP Morgan advised employees holding H-1B visas to avoid international travel until further notice.

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