Trump’s $100K H-1B fee sparks pullback by top US firms | Which companies have halted sponsorship?

Which firms have halted H-1B Visa sponsorship amid new $100k fee policy?

Several major US companies have halted or reduced their sponsorship of H-1B visas following the Trump administration’s decision to impose a $100,000 fee on new applications.

US President Donald Trump last month signed an executive order increasing the H-1B visa fee from $10,000 to $100,000, a move that sent shockwaves through the global tech industry, particularly in India, which accounts for about 70% of such visa holders.

Although the US administration later made it clear that new fees will apply only to new applicants and not to renewals or current holders.

Which firms have stopped sponsoring H1-B visas? 

Cognizant, an IT firm founded in India and headquartered in New Jersey, posted a job listing on October 14 for a software engineering role in South Carolina, stating 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,” Newsweek reported.

A Cognizant spokesperson told Newsweek that Trump’s order “is expected to have limited near-term impact on our operations,” adding, “Cognizant’s scale and global footprint provide multiple levers to continue to serve our clients in the U.S. and globally.”

Intuitive Surgical, a California-based medical technology firm, also suspended H-1B visa sponsorship from late September, according to Business Insider. Notices attached to over 100 job postings on its website stated: “Due to the uncertainty caused by the recent U.S. executive proclamation, we are temporarily pausing offers to candidates who require H-1B visa sponsorship.”

Tata Consultancy Services (TCS), one of the largest H-1B visa sponsors in the U.S., announced that it will stop hiring through the program. TCS CEO K. Krithivasan told The Times of India and Deccan Chronicle that the company already has enough H-1B employees in the U.S. and will now focus on hiring local talent.

Walmart, which employs around 2,400 H-1B visa holders, has also paused hiring candidates who require visa sponsorship, Bloomberg reported, citing sources familiar with the matter. A Walmart spokesperson confirmed to the BBC that the company remains “committed to hiring and investing in the best talent to serve our customers, while remaining thoughtful about our H-1B hiring approach.”

Nvidia

However, Nvidia has taken a different stance. CEO Jensen Huang confirmed that the company will continue sponsoring H-1B visas and cover all related costs, Business Insider reported.

“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 to employees.

Despite the steep fee hike, Huang assured staff that Nvidia remains committed to supporting global talent and will continue to back employees requiring visa sponsorship.

How will this impact Indians? 

Indians remain the biggest beneficiaries of the H-1B visa program, accounting for about 75% of all approvals in 2023, with professionals employed at tech giants such as Google, Microsoft, and Amazon.

For Indian IT firms, the new $100,000 fee will have a financial impact but a limited operational effect. These companies have traditionally sent employees from India to the US on H-1B visas, but in recent years, firms like Infosys, Wipro, and TCS have significantly reduced such transfers.

Since the pandemic and Trump’s earlier policy restrictions, Indian IT firms have expanded local hiring and opened near-shore centers in regions like Latin America and Canada.

Today, nearly 80% of Wipro’s US workforce is locally hired. Infosys CEO Salil Parekh has said that only a small portion of its employees use the firm’s immigration services, while TCS sends around 500 workers annually on H-1B visas despite filing more petitions.