Trump’s $100,000 H-1B Visa Fee Sparks Global Backlash and Hiring Freeze

A sweeping new rule under the Trump administration has sent shockwaves through the U.S. job market, as companies grapple with a massive $100,000 fee for each new H-1B visa application. The White House claims the measure aims to prevent visa misuse and safeguard American jobs, but critics warn it will cripple innovation and restrict global talent flow. The H-1B visa, a cornerstone for skilled professionals in tech, medicine, and engineering—particularly from India—has long supported the U.S. economy’s talent needs.

The policy has already triggered strong reactions from industry giants. Cognizant, Tata Consultancy Services (TCS), Intuitive Surgical, and Walmart have either paused or scaled back H-1B sponsorships. Cognizant has updated job listings to require candidates to be legally authorized to work in the U.S. without sponsorship, calling the rule’s impact “limited” in the short term due to its global reach. TCS, one of the largest historical H-1B employers, has announced a complete halt to new H-1B hiring. CEO K. Krithivasan said the firm is “pivoting to full localization,” emphasizing that strengthening its local U.S. workforce will enhance client confidence and flexibility.

In California, med-tech leader Intuitive Surgical has temporarily suspended sponsorships, citing “uncertainty caused by the recent U.S. executive proclamation.” Over 100 of its job postings now reflect the restriction. Retail giant Walmart has also confirmed a cautious approach, stating it is being “thoughtful about our H-1B hiring strategy” while still investing in top talent.

The U.S. Chamber of Commerce has filed a lawsuit challenging the rule, calling it “cost-prohibitive” for startups and midsized firms. Experts warn that the policy could push employers to expand remote and offshore operations in India and Europe, undermining America’s competitiveness in innovation. Legal analysts also question the administration’s authority to impose such a fee without congressional approval, describing it as an unprecedented barrier to skilled immigration.