Trump’s H-1B visa crackdown: Why the $100,000 fee will hit TCS and Infosys the hardest

Why Trump’s $100,000 H-1B visa fee is bad news for TCS and Infosys

US President Donald Trump’s decision to impose a steep $100,000 fee on new H-1B visa applications is expected to significantly impact Indian IT majors such as Tata Consultancy Services (TCS), Infosys, and Cognizant, according to a Bloomberg News analysis. The move marks the toughest restriction yet on skilled foreign labour and could reshape hiring patterns across the global technology sector.

The proposed fee applies to fresh H-1B workers recruited from outside the United States and is aimed at curbing the use of the visa programme by large staffing and outsourcing firms. Industry experts warn it could sharply reduce visa applications, push more jobs offshore, and raise costs for companies reliant on overseas talent.

Bloomberg’s analysis shows that multinational IT consultancies acting as intermediaries for US clients would be disproportionately affected. Between May 2020 and May 2024, nearly 90% of new H-1B hires at TCS, Infosys, and Cognizant were approved through US consulates, meaning they would all trigger the new fee.

For Infosys, more than 93% of new H-1B hires, over 10,400 workers, would have been subject to the $100,000 charge. TCS would have paid the fee for around 6,500 employees, or 82% of its newly approved H-1B workers, while Cognizant would have been affected for about 5,600 hires, or 89% of its total.

The traditional cost of securing an H-1B visa has been about $2,000 in many cases. Had the new fee been in place earlier, these companies would have incurred hundreds of millions of dollars in additional expenses.

The H-1B programme, which offers 85,000 visas annually for skilled foreign workers with at least a bachelor’s degree, has long been dominated by technology and IT firms. Critics from both major US political parties argue the system is used to undercut American workers, though employers point out that regulations require payment of prevailing wages.

According to immigration attorney Jonathan Wasden, the policy shift is already changing employer behaviour. “We’re already seeing that happen,” he told Bloomberg. “The fear is that if you have truly exceptional talent overseas, those people are definitely going to be missing out.”

Industry observers expect companies to reduce H-1B filings and move more work outside the US. “The IT consulting industry had already pulled back on new H-1Bs since 2024, and the fee will push more jobs overseas,” said Steve Hall, chief AI officer at Information Services Group Inc.

Experts warn the fee could disproportionately affect young Indian professionals, particularly women, who make up a growing share of new H-1B applicants. The high upfront cost may discourage firms from sponsoring early-career workers, especially when comparable talent is available locally in the US.

With the employer cost rising to at least $160,000 per worker, including salary and fees, smaller firms and startups are expected to be hit hardest.

Several firms say they are preparing for the shift. Cognizant said the move would have a limited near-term impact. “The recently announced Proclamation is expected to have limited near-term impact on Cognizant’s operations,” spokesman Jeff DeMarrais said. “Over the past several years, we have significantly reduced our reliance on visas, using them only for select technology roles that supplement our US workforce.”

Infosys cited earlier comments by CEO Salil Parekh, who said only a small portion of the company’s US workforce requires sponsorship and that client services would continue “without any disruption to their services today and into the future.”

IBM, which hired 88% of its H-1B workers from abroad, said it has already adapted its approach. “Our focus remains on ensuring we have the right skills to meet clients’ evolving needs,” spokesperson Miki Carver said.