Discover how the new $100,000 US H-1B visa fee is reshaping hiring strategies. Companies are now favoring local talent over foreign hires, adapting thoughtfully to visa cost changes.
Companies Reassess Global Hiring Amid New US H-1B Visa Fee
The introduction of the new $100,000 US H-1B visa fee has sent ripples through the corporate world, especially affecting IT and technology firms that heavily rely on foreign talent. This fee, applicable to visa applications submitted on or after September 21, has forced companies to rethink their hiring strategies.
US firms are increasingly turning to local hires and employees who already possess valid H-1B visas. Major corporations such as Walmart and Tata Consultancy Services (TCS) have confirmed they are temporarily reducing or halting sponsorship for new visa applicants, prioritizing local talent to minimize disruption. Retail and IT sectors, historically reliant on foreign expertise, are now carefully evaluating the cost-benefit of hiring through the H-1B program.
The US Citizenship and Immigration Services (USCIS) clarified that the fee applies only to new applicants and not to existing H-1B visa holders or renewals. Individuals transitioning from other visa categories, such as F-1 student visas, are also exempt. Despite this, companies like Cognizant have adopted cautious measures, explicitly stating certain job postings will only consider candidates legally authorized to work without employer sponsorship.
This shift is creating a tangible change in workforce composition, with a growing emphasis on local hiring. Experts believe this could accelerate skill development among domestic employees while foreign professionals face increased competition and higher costs for US employment. The impact is particularly significant for Indian tech talent, which has historically dominated H-1B visa allocations.
