On Friday, President Donald Trump significantly increased the application fee for companies seeking to hire foreign workers under the H-1B visa program, a key pathway for employers to recruit specialized talent from abroad in sectors such as technology and education.
This fee surge, raising the cost to $100,000 per application, aims to curb the current volume of foreign hires amid intensifying debates over immigration policy in the United States.
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However, this steep fee increase has sparked uncertainty, raised concerns about its potential impact on the US technology industry, and prompted discussions about the true beneficiaries of the H-1B visa program, how these dynamics have evolved, and who stands to lose the most under the new regulations.
Details of the Trump Administration’s New H-1B Fee Policy
By presidential proclamation effective from 12:01 a.m. ET (04:01 GMT) on Sunday, companies are now required to pay a $100,000 fee for each H-1B visa application submitted.
Previously, fees ranged between $2,000 and $5,000, depending on the size of the employer.
The White House clarified that this fee is a one-time charge applied when submitting a new H-1B petition.
Importantly, these new fees do not affect individuals who currently hold H-1B visas or those who filed their applications before September 21.
In addition, the Department of Labor is revising wage standards to ensure that H-1B visas are awarded only to highly skilled foreign professionals. The Department of Homeland Security will also prioritize applicants with higher salaries and advanced skills in the H-1B lottery system. Further reforms to the visa program are reportedly under review.
Why Has the Trump Administration Raised the H-1B Visa Fees?
The H-1B visa was established in 1990 during President George H.W. Bush’s administration as part of broader immigration reforms, allowing companies to employ foreign specialists in the US for up to six years.
Critics argue that the program has been exploited by staffing agencies to import workers at wages below those paid to American employees, effectively displacing US workers and undermining fair labor standards.
Currently, the minimum annual salary for H-1B visa holders is set at $60,000, while critics contend that comparable US tech positions typically command salaries exceeding $100,000.
Commerce Secretary Howard Lutnick emphasized on Friday, “If training is necessary, it should be directed toward recent graduates from our nation’s top universities. We must prioritize training Americans instead of importing workers who take jobs from our citizens.”
Demographics of H-1B Visa Recipients
The majority of H-1B visa holders are Indian nationals.
In 2024, Indians accounted for 71% of approved H-1B visas, followed by Chinese nationals at 11.7%, according to official US data.
Filipinos made up 1.3%, Canadians 1.1%, and South Koreans 1% of the approved visas.
However, the landscape becomes more nuanced when examining the companies sponsoring these visas, revealing evolving trends in employer profiles.
Top Employers of H-1B Visa Holders: A Historical Overview
Between 2009 and mid-2025, Indian IT firms dominated the list of companies sponsoring H-1B visa holders, occupying the top four positions.
Data from US Citizenship and Immigration Services (USCIS) shows:
- Tata Consultancy Services (TCS), headquartered in Mumbai, led with 98,259 visas granted.
- Cognizant, originally founded in Chennai but now a US-based company, followed with 92,435 visas.
- Infosys, based in Bengaluru, secured 87,654 visas.
- Wipro, also from Bengaluru, accounted for 77,289 visas.
Yet, recent years indicate a shift in this pattern.
Recent Trends in H-1B Visa Sponsorship
From 2015 to 2025, TCS, Cognizant, and Infosys remained the top three sponsors, but US tech giants Microsoft and Google claimed the fourth and fifth spots.
Since 2020, the landscape has changed more dramatically: Amazon leads with 43,375 visas, followed by Infosys (43,332), TCS (38,138), Google (35,736), and Microsoft (35,356).
In the first half of 2025, TCS was the sole Indian company in the top ten, with 5,505 visas. Cognizant ranked seventh. The rest of the top ten was dominated by major US corporations including Amazon (10,044 visas), Microsoft, Meta, Apple, Google, JP Morgan Chase, Walmart, and Deloitte.
What Explains This Shift in H-1B Visa Sponsorship?
Heightened scrutiny of the H-1B program during Trump’s initial term prompted Indian IT firms to increase their hiring of American workers.
Trump criticized the program as “very, very bad” for US labor during his first term and briefly imposed a ban on H-1B visas in 2020, which was later overturned by a federal court.
By early 2025, TCS reported that over half of its US workforce was locally hired, according to CEO K Krithivasan.
Nonetheless, Indian IT companies continue to face scrutiny regarding their employment practices in the US.
Legal Challenges Confronting Indian Tech Companies in the US
In 2024, a former TCS employee filed a lawsuit alleging that the company replaced American workers with younger graduates or temporary visa holders of Indian or South Asian descent, accusing TCS of violating anti-discrimination laws. TCS has denied these allegations.
The case, initiated by Randy Devorin in Florida’s Southern District Court and later moved to New Jersey, stems from his termination in September 2023. In May, a judge denied TCS’s motion to dismiss several claims.
Similar accusations have been made by other US employees against Indian firms.
However, Indian companies are not alone in facing such allegations.
On September 12, a class-action lawsuit was filed against Tesla in a San Francisco federal court, accusing the company of systematically favoring foreign workers over US citizens in hiring and firing practices.
The complaint highlighted Tesla’s reliance on H-1B visa holders for skilled labor, noting that in 2024, Tesla hired approximately 1,355 H-1B workers while laying off over 6,000 employees, most of whom were US citizens.
Elon Musk, who sat beside Trump at a memorial for right-wing influencer Charlie Kirk, has been a vocal supporter of the H-1B program. Originally from South Africa, Musk once held an H-1B visa before becoming a US citizen.
In 2024, Musk tweeted, “The reason I’m in America along with so many critical people who built SpaceX, Tesla and hundreds of other companies that made America strong is because of H-1B.”
Has Trump’s Position on H-1B Visas Changed Over Time?
Indeed, President Trump’s stance on the H-1B visa program has fluctuated.
While he criticized the program during his first term, in December 2024 he praised it, stating to The New York Post, “I have many H-1B visas on my properties. I’ve been a believer in H-1B. I have used it many times,” calling it a “great” program.
Nevertheless, a significant portion of Trump’s Make America Great Again (MAGA) base has increasingly demanded the elimination or substantial reform of the H-1B visa system.
Friday’s announcement appears to be a response to those calls for change.
