A dramatic increase in H-1B visa fees announced by U.S. President Donald Trump on Friday has sent shockwaves through global technology markets. Under the newly unveiled policy, the annual fee for each H-1B visa will skyrocket to $100,000—a staggering escalation from the current average cost of just over $10,000. This move, part of the administration’s broader immigration crackdown, is set to significantly reshape hiring strategies and cost structures for tech firms worldwide.
The H-1B visa program, which allows U.S. companies to employ foreign workers in specialized fields such as technology and engineering, has long been a cornerstone of the American innovation economy. However, the administration has increasingly positioned the program as a vehicle for what it views as unfair labor practices and job displacement. With this fee hike, the government appears to be signaling a stronger push toward limiting foreign worker inflow in favor of domestic hiring.
The impact on Indian IT companies has been immediate and severe. Major firms such as Tata Consultancy Services (TCS), Infosys, Wipro, and HCL Technologies—some of the heaviest users of the H-1B program—are facing an enormous financial blow. Collectively, Indian IT giants submitted over 13,000 H-1B applications last year. With the new $100,000 fee, their visa-related costs could balloon from approximately $13.4 million to a staggering $1.34 billion. Industry analysts estimate this could erase up to 10% of their projected FY25 profits, a potential hit that is already rattling investor confidence.
Markets have responded swiftly. Cognizant, which has a significant H-1B workforce, saw its shares drop 4.75% on Nasdaq, while Infosys fell 3.4% on the New York Stock Exchange. Analysts expect a broader tech stock sell-off when markets reopen on Monday, as investors digest the long-term implications of the policy shift.
But the fallout isn’t confined to Indian companies alone. U.S. tech giants—including Google, Amazon, Apple, Meta, and NVIDIA—are also heavily reliant on H-1B visa holders, many of whom are highly skilled engineers and data scientists from India and other countries. While these companies have deeper financial cushions, they too face rising operational costs. The fee hike may compel a shift toward more local hiring, potentially increasing payroll expenditures and exerting pressure on already-tight profit margins.
Industry leaders and policy experts have voiced strong concerns, warning that such a move could undermine the competitiveness of the U.S. tech sector. “This fee structure threatens to make the U.S. less attractive to global talent,” said one Silicon Valley executive. “Innovation doesn’t happen in isolation—it’s driven by diversity, skill, and collaboration across borders.”
With the 2026 election cycle beginning to take shape, many observers believe the visa fee hike is part of a broader populist strategy aimed at appealing to domestic workers. However, critics argue that the economic and strategic costs may far outweigh the political gains.
As the tech world braces for turbulence, companies large and small are being forced to re-evaluate their global hiring models, pushing some to consider relocating talent hubs outside the U.S.—a move that could have long-term consequences for American tech leadership.
