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The United States has introduced a new rule requiring tech companies to pay $100,000 to secure H-1B visas for foreign employees. This move is expected to heavily impact the Indian diaspora, which accounts for nearly 70% of H-1B visa holders in the US. President Donald J. Trump has signed an Executive Order to increase the fee companies must pay to sponsor H-1B visa applicants to $100,000.
White House Staff Secretary Will Scharf stated, “The H-1B non-immigrant visa program has been one of the most abused systems. It is meant for highly skilled workers in fields where Americans are not available. This proclamation raises the sponsorship fee to $100,000, ensuring that only truly skilled individuals who cannot be replaced by American workers are brought into the U.S.”
According to the US Commerce Secretary, the decision aims to encourage companies to hire more American workers while reducing opportunities for foreign employees deemed less valuable. Former President Donald Trump has criticized the H-1B visa system, especially IT outsourcing firms, claiming it is subject to “systemic abuse” and calling its misuse a “national security threat.”
United States Secretary of Commerce Howard Lutnick added, “Big tech and other large companies will no longer find it economical to train foreign workers. They must pay the government $100,000 in addition to the employee’s salary. Companies should focus on training recent graduates from top American universities instead of bringing in foreign workers to take jobs. This policy has strong support from major corporations.”
Certain tech and financial companies employ large numbers of foreign workers and will now face a significant cost under the new rule. Federal data identifies the top 10 H-1B sponsors:
Amazon Com Services LLC – 10,044 visa holders
Tata Consultancy Services LLC – 5,505
Microsoft Corporation – 5,189
Meta Platforms – 5,123
Apple Inc – 4,202
Google LLC – 4,181
Cognizant Technology Solutions – 2,493
JP Morgan Chase & Co – 2,440
Walmart Associates Inc – 2,390
Deloitte Consulting LLP – 2,353
In July, the US Citizenship and Immigration Services (USCIS) announced that it had already received enough petitions to meet the 65,000 regular H-1B visa cap and the 20,000 US advanced degree exemption (master’s cap) for fiscal year 2026.
Under Trump’s new proclamation, titled “Restriction on Entry of Certain Nonimmigrant Workers,” individuals applying for H-1B visas must now include the $100,000 payment with their petitions. This restriction is set to expire 12 months after September 21, 2025, unless extended.
The H-1B visa is a non-immigrant visa allowing U.S. companies to temporarily employ foreign workers in specialty occupations, typically requiring technical or theoretical expertise in fields like IT, engineering, science, medicine, or finance.
Eligibility: Applicants must have at least a bachelor’s degree or equivalent in a relevant field.
Employer Sponsorship: A U.S. employer must offer a job and sponsor the visa; individuals cannot apply independently.
Duration: Initially granted for 3 years, extendable to 6 years.
Cap: Annual limit of 65,000 visas, with an additional 20,000 for US master’s degree holders.
Dependents: Spouses and children under 21 can accompany the holder on H-4 visas, with some eligible to work if their spouse is on a green card path.
Green Card Path: H-1B can serve as a stepping stone to permanent residency in the U.S.
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