US President Donald Trump has suspended visas for highly-skilled workers until the end of this year.
The White House said the move would create jobs for Americans hurting economically due to the pandemic.
But critics say the White House is exploiting the coronavirus pandemic to tighten up immigration laws.
The H-1B visa is among several categories of visas that have been suspended and it is expected to particularly hurt Indian technology companies and workers.
Reports say that Indians take up nearly 70% of the 85,000 H-1B visas issued every year.
What is the H-1B visa?
It is a non-immigrant visa that allows firms to employ foreigners for up to six years in positions for which they have been unable to find American employees.
It also allows holders to apply for permanent residency in the US and buy property in the country.
The visa is useful for Indian tech giants like Wipro, Infosys and Tata Consultancy Services (TCS) as it allows them to send workers from India to manage important projects.
It also helps US tech giants like Google, Facebook and Twitter hire talent from India.
The ban announced by Mr Trump will only affect individuals who are planning to apply for the visa – which means those who have already got it and are working in the US will not