H-1B visa hirings: Local hires, temporary halts & more—How companies are taking alternative routes to avoid $100k fee

Several major US employers have paused or limited the sponsorship for H-1B visas after the Trump administration imposed a $100,000 fee for new applications.

The fee, aimed at new applicants, does not affect current visa holders or renewals.

The administration said that the reform is intended to attract highly skilled foreign workers while preventing misuse of the programme to undercut American wages. However, critics argue the fee could deter companies from hiring international talent and reduce America’s competitiveness in technology and innovation, Newsweek reported.


The US chamber of commerce has filed a lawsuit challenging the fee, describing it as “cost-prohibitive for US employers, especially start-ups and small and midsize businesses.”

Fee Details

The fee applies only to applicants outside the United States who do not hold a valid visa. Current H-1B holders, renewals, and those changing visa types, such as moving from an F-1 student visa to H-1B, are exempted.

Mark Koestler, US head of business immigration at law firm HSF Kramer, told Newsweek, “In simple terms, the super fee will not apply to individuals in the United States in valid status (as long as the H-1B filing for them requests a change of status, extension of status, or amendment).”

“It will, however, apply to those who are outside the United States without a valid, current US immigration status,” the agency further cited.

Companies alter hiring plans

Some firms, like Nvidia, will continue sponsoring H-1B applicants. CEO Jensen Huang confirmed in a memo that the company will “continue to sponsor H-1B applicants and cover all associated fees.”

Other companies have changed their approach:

• Cognizant: The IT firm, founded in India, has not specifically addressed the changes to the program, however, in a South Carolina software engineering job listing, it stated that only applicants “legally authorised to work in the United States without the need of employer sponsorship” will be considered.
• Intuitive Surgical: Over 100 job postings indicate the company is “temporarily pausing offers to candidates who require H-1B visa sponsorship” due to uncertainty over the new rule, Business Insider reported, as cited by Newsweek.
• Tata Consultancy Services (TCS): The IT giant has decided not to hire new H-1B applicants. CEO K Krithivasan said that the company already has a sufficient H-1B workforce and will focus on local hires.
• Walmart: The retailer, employing around 2,400 H-1B visa holders, has paused hiring for these roles. A spokesperson stated the company remains “committed to hiring and investing in the best talent to serve our customers, while remaining thoughtful about our H-1B hiring approach.”

Industry reactions

Neil Bradley, executive vice president at the US chamber of commerce, told Newsweek, “The new $100,000 visa fee will make it cost-prohibitive for US employers, especially start-ups and small and midsize businesses, to utilize the H-1B program, which was created by Congress expressly to ensure that American businesses of all sizes can access the global talent they need to grow their operations here in the US.”

Immigration attorney Divij Kishore also warned, “Over time, this policy could narrow the diversity and skill depth of the US workforce. Companies will hire fewer foreign professionals and shift more high-value work abroad, leaving fewer opportunities for knowledge transfer within the US."

Kishore further told Newsweek that the move risks creating a workforce that is less globally integrated and "less equipped to compete in emerging technologies where international collaboration has always been America’s edge."

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