Trump's $100k H-1B visa fee impacts employees: These four IT giants exit hiring plans

A sweeping new H-1B visa rule under the Trump administration has jolted the US job market, forcing global employers to rethink their hiring strategies. The policy now requires companies to pay a $100,000 fee for each new H-1B visa application, a move the White House says is meant to prevent misuse of the visa system and prioritise domestic employment.

The H-1B visa, a mainstay for skilled foreign professionals in technology, medicine, and engineering, has long been a gateway for Indian talent into the US workforce. But the new fee has triggered an outcry from business groups and immigration advocates who call it “a barrier to innovation.”

Cognizant, TCS, Intuitive Surgical, and Walmart have significantly paused H-1B hiring.

The US Chamber of Commerce has filed a lawsuit, arguing the policy is “cost-prohibitive for employers, especially startups and midsize businesses.”

Corporates begin restricting sponsorships

One of the first reactions came from Cognizant, among the largest US employers of Indian IT professionals. The company quietly modified its job postings to specify that candidates must now be “legally authorised to work in the United States without the need for employer sponsorship.”

A Cognizant representative told Newsweek that the rule would have a “limited near-term impact” due to the firm’s “scale and global footprint.”

TCS pivots to full localisation

Indian IT major Tata Consultancy Services (TCS), historically one of the biggest H-1B sponsors, has announced it will stop hiring through the programme entirely.

TCS CEO K. Krithivasan said the company has “significantly localised its US workforce” and is adapting to the new rules by increasing local recruitment.

“Our business model is flexible enough to handle these shifts,” added Chief HR Officer Sudeep Kunnumal. “We believe localisation will continue to strengthen our client relationships.”

Other firms follow suit

In California, Intuitive Surgical, a leading med-tech company, has paused all H-1B sponsorships, citing “uncertainty caused by the recent US executive proclamation.” Over 100 job listings on its website now carry the disclaimer, “Due to the uncertainty caused by the recent US executive proclamation, we are temporarily pausing offers to candidates who require H-1B visa sponsorship.”

Retail giant Walmart, which employs more than 2,400 H-1B workers, has also joined the list, confirming it is being “thoughtful about our H-1B hiring approach” while continuing to “invest in the best talent.”

Critics fear loss of global competitiveness

While the Trump administration maintains that the new fee protects American jobs, critics say it discourages global talent and risks weakening the US innovation ecosystem. Legal experts have questioned whether such a steep charge can be imposed without congressional approval.

Analysts warn that the policy could push companies to expand remote operations and offshore delivery centres in markets like India and Europe, rather than hiring talent on US soil.