A sweeping new rule under the Trump administration has sent shockwaves through the global job market, with U.S. employers now required to pay a $100,000 supplemental fee for every new H-1B visa application. The White House argues that the change is intended to curb misuse of the visa system and prioritize jobs for U.S. citizens. But industry leaders, legal experts, and business associations warn that the policy risks undermining American competitiveness and innovation.
The H-1B visa has long been a critical pathway for highly skilled foreign professionals — particularly from India — to work in the United States across sectors such as technology, engineering, and healthcare. The new fee structure has triggered immediate pushback from employers, many of whom say it places an outsized financial burden on recruitment and workforce planning.
The U.S. Chamber of Commerce has filed a lawsuit challenging the policy, calling the fee “cost-prohibitive for employers, especially startups and midsize firms.”
Corporates Shift Hiring Strategies
The impact has already begun to reshape corporate talent approaches:
Cognizant, one of the largest employers of Indian IT professionals in the U.S., has updated its job postings to state that applicants must be authorized to work in the U.S. without employer sponsorship.
A spokesperson told Newsweek that the company expects a “limited near-term impact” due to its broad global workforce presence.
Tata Consultancy Services (TCS) has taken a more decisive turn, announcing that it will no longer hire through the H-1B program.
CEO K. Krithivasan said the company has already “significantly localized its U.S. workforce,” with plans to further expand U.S. hiring to align with the new regulatory landscape.
In California, Intuitive Surgical has paused all H-1B sponsorships, adding a disclaimer on more than 100 job listings that the shift is due to “uncertainty caused by the recent U.S. executive proclamation.”
Walmart, which employs over 2,400 H-1B workers, said it is being “thoughtful” in evaluating future sponsorships while continuing to invest in top talent.
Concerns Over Talent and Innovation
Critics argue the policy could discourage global talent, restrict cross-border skill mobility, and drive companies to build remote or offshore delivery centers in countries such as India and Poland rather than hiring in the United States.
Legal experts have also questioned whether such a significant fee can be imposed without congressional approval, raising the possibility of further challenges.
Industry analysts caution that while the policy may achieve short-term localization goals, it could also erode the U.S.’s position as a global innovation hub — particularly in sectors facing domestic skill shortages.
The Road Ahead
As companies rethink recruitment pipelines and workforce models, the full impact of the rule will unfold over the coming months. What remains clear is that the new H-1B fee represents one of the most consequential immigration policy shifts in recent decades, with effects that will be felt across technology, healthcare, manufacturing, and global talent mobility.
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