The recent proclamation by the Trump administration to increase the H-1B visa fee to $100,000 annually has sent shockwaves through the technology sector, particularly impacting Indian IT companies and skilled foreign workers in the United States. Effective September 21, 2025, this move is poised to significantly alter the landscape of talent acquisition and project economics for companies like TCS, Wipro, Cognizant, NVIDIA, and Tesla.

Impact on Indian IT Companies

Indian IT firms have long relied on the H-1B visa program to bring skilled professionals to the U.S. to service their clients. With Indians constituting a significant percentage of H-1B visa holders, the financial burden imposed by the increased fee is substantial. For instance, with 13,396 H-1B visas sponsored by Indian companies, the new order could increase their collective visa fees from approximately $13.4 million to $1.34 billion. This represents a considerable portion of the combined net profits of major Indian IT players like TCS, Infosys, HCLTech, Cognizant, and LTIMindtree.

The increased cost is expected to impact the stock prices of these companies as trading resumes on Monday. On Friday, shares of Cognizant Technology Solutions already saw a decline on the Nasdaq, and Infosys' share price also fell on the NYSE. American Depositary Receipts (ADRs) of Infosys and Wipro also experienced declines.

Seema Srivastava, a Senior Research Analyst at SMC Global Securities, suggests that the unexpected fee could significantly affect competitiveness and talent acquisition for companies dependent on skilled foreign workers. The move is projected to sharply increase hiring costs and potentially disrupt recruitment and workforce planning. Immigration attorney Charles Kuck has described the move as "an intentionally devastating blow" to Indian IT firms that heavily rely on H-1B petitions.

Impact on US Tech Companies

While the impact is expected to be more pronounced for Indian companies, U.S. tech giants like NVIDIA, Amazon, Tesla, Meta, and Alphabet are also likely to feel the pressure. These companies also utilize the H-1B visa program to secure specialized talent, and the increased costs could affect their bottom lines.

Some experts believe that U.S. companies may respond by hiring more American tech workers. However, this could lead to increased labor costs, as American tech professionals may demand higher salaries compared to their Indian counterparts. This shift could potentially put pressure on company margins.

Potential Strategies and Long-Term Implications

In response to the increased H-1B visa fees, companies may explore several strategies:

• Increased automation: Investing in automation technologies to reduce their reliance on human capital.
• Offshoring: Shifting operations and jobs to countries with lower labor costs.
• Domestic upskilling: Focusing on training and developing American workers to fill specialized roles.
• Targeting new markets: Diversifying into new growth sectors to reduce dependence on the American market.
• Lobbying and Legal Challenges: Challenging the legality of the new fees.

The long-term implications of this policy change could include:

• Talent Drain: Global talent may be diverted to other countries, potentially exacerbating STEM labor shortages in the U.S..
• Innovation Risk: Slower growth in tech and other sectors due to the restricted access to international expertise.
• Reduced Competitiveness: Increased costs could make U.S. companies less competitive in the global market.
• Shift in Immigration Patterns: Potential shift in immigration patterns, with skilled workers seeking opportunities in countries with more favorable immigration policies.

While the Trump administration argues that this measure is intended to protect American jobs and ensure that H-1B visa holders possess exceptional skills, critics contend that it could stifle innovation, harm the U.S. economy, and negatively impact companies that rely on specialized foreign talent. Some analysts suggest that the fee may force companies to move high-value work overseas, hampering America's position in the artificial intelligence race.

Microsoft has already urged its employees on H-1B and H-4 visas to return to the U.S. immediately before the September 21 deadline.

It remains to be seen how these changes will ultimately unfold and what long-term effects they will have on the technology industry and the global flow of talent.