Trump's New $100K Fees on H-1B Visas Threaten Indian Tech Giants' Profits

Washington – December 15, 2025 | EcoPulse24

Major Indian tech companies, including Tata Consultancy Services, Infosys, and Cognizant, are facing increasing financial pressure following the announcement by President Donald Trump's administration to impose $100,000 fees on hiring new skilled foreign workers under the H-1B visa program, marking the strictest immigration restriction efforts to date.

Analyses suggest that the decision will disproportionately impact consulting and IT outsourcing firms that rely on bringing in talent from abroad to work for clients in the U.S. U.S. immigration data indicate that most new hires at these companies in recent years were processed through consular channels outside the U.S., making them directly subject to the new fees.

Estimates suggest that over 93% of new hires at Infosys between 2020 and 2024 would be subject to these fees, adding burdens exceeding $1 billion to the company's costs. Tata Consultancy Services would incur fees for nearly 6,500 new employees, while Cognizant would face additional costs for over 5,600 workers.

Observers believe the new fees will lead to a decline in demand for H-1B visas and accelerate the trend of offshoring jobs, particularly to India, which is the primary source of skilled labor in the U.S. tech sector. Research firms predict that applications for the upcoming visa lottery could drop by as much as 50% as companies reassess their hiring strategies.

In contrast, the U.S. administration claims the fees aim to protect the local labor market and prevent what it describes as 'abuse' of the visa system, asserting that the move will encourage companies to hire more skilled and higher-paid workers domestically.

These developments come as U.S. companies face increasing pressure to cut costs and enhance efficiency amid a potential economic slowdown and the rapid expansion of remote work and outsourcing. Analysts suggest that the new policies may reshape the global employment landscape in the tech sector, boosting investments in Asian tech hubs at the expense of domestic hiring.