• Source:JND
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H-1B visa 2025: Several top US firms have paused or scaled back their sponsorship of H-1B visas after the Trump administration imposed a USD 100,000 fee for new applicants, a move aimed at preventing misuse of the program and protecting American workers.

The fee, effective October 6, applies only to new H-1B visa petitions and targets a program that brings skilled foreign professionals—approximately 70 per cent of them Indian—to the United States. The new rules have raised concern among prospective Indian workers and have been challenged in a California federal court, as reported by Newsweek.

Tech Giants React Differently

Despite the fee hike, Nvidia CEO Jensen Huang told staff that the company will continue to sponsor H-1B visas and cover all associated costs. “The miracle of Nvidia, built by all of you, and by brilliant colleagues around the world, would not be possible without immigration,” Huang said in a memo, as reported by Business Insider.

However, several companies have scaled back or paused H-1B sponsorship. Cognizant, an IT company founded in India, stated in a job posting for a software engineering role in South Carolina that it would “only consider applicants for this position who are legally authorized to work in the United States without the need of employer sponsorship,” as reported by Newsweek. A company spokesperson added that the announcement is expected to have limited near-term impact on operations.

Intuitive Surgical, a California-based med-tech firm, has stopped offering sponsorship to candidates requiring an H-1B visa, based on notices posted to over 100 job listings on its website, according to Business Insider. The listings cited “uncertainty caused by the recent US executive proclamation.”

Tata Consultancy Services (TCS), one of the largest sponsors of H-1B visas in the United States, announced it will no longer be hiring through the program. CEO K. Krithivasan said the company already has sufficient H-1B entrants and will focus on local hiring, as reported by the Times of India.

Retail giant Walmart has paused hiring applicants who require H-1B visas, despite employing an estimated 2,400 H-1B holders, as reported by BBC. A Walmart spokesperson emphasised that the company remains committed to hiring the best talent while being thoughtful about its H-1B approach.

ALSO READ: 'H-1B System Spammed With Fraud': What White House Says On Lawsuits Challenging Trump's Visa Hike | WATCH

Economic Implications

The US Chamber of Commerce has warned that the USD 100,000 fee could be “cost-prohibitive for US employers, especially start-ups and small to mid-sized businesses." The H-1B visa, established under the Immigration Act of 1990, allows US companies to hire foreign professionals in fields where domestic talent is insufficient. Currently, 65,000 visas are issued annually, with an additional 20,000 reserved for individuals holding US master’s degrees or higher. Indians remain the largest beneficiaries, accounting for roughly 75 per cent of all H-1B visas.

ALSO READ: H‑1B Workers Hit Hard As Walmart Suspends Recruitment After Controversial Trump Visa Fee Hike

While the administration intends to protect American jobs and prevent system abuse, critics argue the fee could limit access to highly skilled talent crucial for US competitiveness in technology and healthcare sectors.

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