By David Froshiesar

This change has jolted the industry. Beyond headlines, it’s reshaping how companies source talent, what gets prioritized, and where innovation migrates. Here’s the full picture—and what you can do about it.

What changed with H-1B visas

• New fee: A one-time $100,000 charge applies to new H-1B petitions filed for workers abroad. Renewals for existing H-1B holders are exempt. The fee took effect September 21, 2025.
• Scope and exemptions: The DHS can grant waivers in the “national interest.” Separately, the administration proposed prioritizing higher-wage roles in the H-1B selection process.
• Baseline context: Standard H-1B filing costs previously ranged roughly $2,000–$5,000 depending on employer size. The program is capped at 65,000 plus 20,000 for advanced degree holders, and is heavily used in tech, healthcare, and academia.

Who this hits hardest

• Startups and mid-sized firms: The fee is effectively a barrier to sponsoring international talent except for the most revenue-critical or specialized roles.
• Big Tech and IT services: Large tech firms may absorb costs selectively but face scale problems; high-volume sponsors and outsourcing firms lose the ability to mass-file.
• Universities and hospitals: Research institutions, postdocs, and clinical roles (often cap-exempt) still face the fee on new petitions, threatening budgets and pipelines—especially in shortage specialties.
• Finance and enterprise tech: Banks and consultancies that rely on H-1Bs for technologists and analysts are reassessing entry-level hiring and offshoring options.

Will this push companies to hire U.S. workers?

• Short-term shift: Yes—firms will accelerate domestic recruiting for roles where skills are available and costs justify it. Expect competition and wages to rise for U.S. candidates in in-demand areas.
• Limits and bottlenecks: Specialized roles (AI research, chip design, security) face persistent domestic supply constraints. Companies won’t magically find enough local talent to fill every niche.
• Workarounds grow: Expect more offshore builds, nearshore hubs (Canada/Latin America), and remote-first global teams to bypass visa friction.
• Policy gray areas: If wage-based prioritization proceeds, sponsorship could concentrate further in the highest-paying roles, reinforcing a barbell effect—very senior roles get sponsored, junior roles don’t.

How employers are responding

• Selective sponsorship: Reserving H-1B spend for hardest-to-fill, highest-impact roles; pausing junior-level international hiring.
• Legal action and advocacy: Coalitions of unions, employers, and industry groups are challenging the fee’s legality; sectors are also seeking carveouts.
• Risk management: Advisories around international travel for H-1B staff due to implementation ambiguity; internal audits of immigration pipelines and vendors.
• Talent strategy reset: Building global teams, expanding campus and apprenticeship programs, and investing in upskilling to grow U.S. pipelines over time.

What this means for workers

• U.S. candidates: Stronger negotiating power in high-demand fields; more internal mobility and reskilling programs; competition remains intense at the top end.
• International students and professionals: Sponsorship will skew toward higher salaries and niche expertise; early-career roles may be deprioritized. Alternative pathways (TN, O-1, L-1, cap-exempt roles) and global remote opportunities become more important.
• Location strategy: Canada, Europe, India, and emerging nearshore markets will see increased hiring; new visa initiatives abroad (like targeted STEM visas) may attract talent that once defaulted to the U.S.

Practical moves you can make now

For employers

• Prioritize roles: Identify positions where the $100,000 fee is justified by revenue, IP, or mission-critical risk.
• Diversify pathways: Expand cap-exempt roles (universities/nonprofits), explore TN/O-1/L-1 eligibility, and build nearshore/offshore teams to maintain velocity.
• Grow domestic pipelines: Invest in apprenticeships, bootcamps, and university partnerships; shape internal upskilling in AI, security, and silicon-adjacent skills.
• Strengthen compliance: Update travel guidance, audit immigration processes, and coordinate with counsel on potential exemptions and litigation developments.

For candidates

• Signal specialization: Emphasize demonstrable impact, advanced skills, and compensation-aligned value; pursue credentials that support O-1 or wage-priority positioning.
• Broaden options: Consider cap-exempt roles, alternative visa categories, and top-tier global employers hiring remotely; evaluate Canada/EU opportunities as part of a multi-path plan.
• Upskill intentionally: Target AI/ML, cloud infra, cybersecurity, and semiconductor-adjacent skills where demand is resilient and sponsorship is likelier.

Sources:

1. Yahoo News: US lawmakers have questions for Big Tech and others on H-1B hiring practices
2. MSN/Business Insider: Tech hiring is still frozen—here’s the real reason why
3. MSN: White House claims H-1B program replaced over 40,000 American tech workers
4. Tribune Chronicle: Editorial on H-1B and impacts on U.S. tech workers
5. Newsweek: China’s new “K visa” courting foreign tech talent amid U.S. H-1B changes
6. Forbes: Universities may face huge costs from Trump’s $100,000 H-1B fee
7. AOL/Business Insider: Visa fee threatens Wall Street’s tech pipeline; JPMorgan estimate of 5,500 fewer authorizations per month
8. MSN/Fortune: Experts say fee handicaps tech; H-1B counts at Amazon, Microsoft, Meta; 730,000 H-1B holders and $86B economic contribution
9. MSN: State-level impacts, fee details, prior filing costs, exemption notes
10. WMAL/Reuters summary: Unions and employers sue to block the $100,000 fee; travel advisories; cost estimates
11. Forbes: What the $100,000 fee means for tech jobs and workers; exemptions and industry reactions
12. Politico: Tech industry response, DHS wage-priority shift, AMA concerns for physicians
13. ABC News: Talent pipeline concerns, program caps, and innovation impacts
14. Built In: Fee effects on startups, Big Tech responses, program fundamentals
15. Terminal.io: Industry perspective on offshoring/remote strategies post-fee
16. The Hill: Silicon Valley reaction, Big Tech usage, immediate clarifications on renewals and travel 6–11. Additional employer rankings and hiring trend context (Forbes/Statista, Computerworld, Tech.co, Motion Recruitment)Forbes+5