Several major US companies have stopped sponsoring H-1B visas after the Trump administration introduced a $100,000 fee for new applicants. The new rule applies only to fresh applicants, not renewals or current visa holders.
The $100,000 fee aims to ensure the H-1B program recruits top talent while preventing misuse for cheap labor. However, critics argue it could hurt American innovation and filed lawsuits challenging the fee. The US Chamber of Commerce called the fee “cost-prohibitive for US employers, especially start-ups and small and midsize businesses.”
Who Is Affected by the H-1B Fee?
The fee applies to H-1B visa applications filed on or after September 21. It does not impact those switching from another visa type, such as F-1 student visas, or current H-1B holders.
Despite the fee, some firms like Nvidia continue to sponsor visas. Nvidia CEO Jensen Huang stated the company would “continue to sponsor H-1B applicants and cover all associated fees.”
Firms Suspending H-1B Sponsorship
Several companies have responded by halting or reducing visa sponsorships:
Cognizant:
The IT giant now only considers candidates “legally authorized to work in the United States without the need of employer sponsorship.” A company spokesperson said the change “is expected to have limited near-term impact on our operations.”
Intuitive Surgical:
The California-based medical technology firm has temporarily stopped H-1B sponsorship due to uncertainties from the new executive order. Job postings for over 100 roles now exclude candidates needing sponsorship.
Tata Consultancy Services (TCS):
One of the largest H-1B sponsors, TCS, will now focus on hiring local talent in the US. CEO K. Krithivasan said, “The firm already had enough H-1B workers in the US and will now concentrate on employing local talent.”
Walmart:
Despite having around 2,400 H-1B holders, Walmart has paused hiring applicants requiring sponsorship. A company representative said, “We are committed to hiring and investing in the best talent to serve our customers, while remaining thoughtful about our H-1B hiring approach.”
What This Means for the Workforce?
The $100,000 fee could reshape the H-1B landscape in the US. Companies are reconsidering hiring strategies, while foreign professionals may find fewer sponsorship opportunities. Legal challenges may delay or modify the policy, but the immediate impact is clear: some firms are prioritizing local talent to avoid the extra cost.
Future of H-1B Sponsorship
Experts suggest this policy may accelerate automation and domestic hiring, while prompting multinational companies to rethink global talent strategies. While some firms like Nvidia remain committed to sponsorship, others have adjusted hiring practices to mitigate costs and uncertainty.
The new H-1B fee highlights tensions between protecting domestic jobs and maintaining US leadership in technology and innovation.
