Companies Not Sponsoring H-1B Visas: The latest changes to the H-1B visa program under President Donald Trump are causing big problems for US companies. A new $100,000 fee now applies to certain H-1B visa applications. Many companies are pausing or reducing hiring for foreign workers because of this. The policy started on September 21 and affects new applicants outside the United States who do not already have H-1B status. Renewals and people moving from other visas, like F-1 student visas, are not affected.
This new fee has already led to lawsuits and confusion. The US Chamber of Commerce filed a case against the administration, saying the $100,000 cost is “cost-prohibitive” and will hurt startups and small businesses the most. Neil Bradley, executive vice president of the Chamber, said, “This move undermines the very purpose of the H-1B program, which was designed to give American companies access to highly skilled talent.”
Companies Pause or Change Hiring?
Walmart, the largest private employer in the US confirmed it has paused offers to candidates who need H-1B visa sponsorship. A spokesperson said, “Walmart is committed to hiring and investing in the best talent to serve our customers, while remaining thoughtful about our H-1B hiring approach.”
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Cognizant, the Indian IT services company, added disclaimers on job posts saying it will only consider applicants already authorised to work in the US without sponsorship. A company spokesperson said they expect “limited near-term impact” due to their global operations.
Intuitive Surgical, a medical technology company, added notices to over 100 job listings that it is “temporarily pausing offers to candidates who require H-1B visa sponsorship” because of the new rule.
Tata Consultancy Services (TCS), one of the top H-1B sponsors globally, said it will no longer hire through the program. Sudeep Kunnumal, TCS’s chief human resources officer, said, “We have significantly localized our workforce in the U.S. We believe our business model will be able to adapt quickly to any changes in immigration policy.”
Lawsuits and Industry Concerns
The Trump administration says the new fee is needed to stop abuse of the visa system and protect US wages. A White House spokesperson said “This is an incremental step towards reforming the H-1B program to ensure it serves the national interest.”
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But legal challenges continue. Critics say the fee seems random. John Veitch, dean of the School of Business and Management at Notre Dame de Namur University, said, “It seems like a made-up number. Companies are asking whether this is even real. It could destabilize entire workforces, especially at the mid-tier company level.”
The US Citizenship and Immigration Services says it has already received enough H-1B applications to meet both the 65,000 regular cap and the 20,000 advanced degree cap for fiscal year 2026.
