Major US Firms Halt H-1B Visa Sponsorship Following New $100,000 Fee Policy

Several prominent American companies have stopped sponsoring new H-1B visa applications. This decisive action comes after the Trump administration announced a new $100,000 fee for the program. The policy aims to reform the system for skilled foreign workers.The reform intends to protect American jobs and wages. It also seeks to ensure the program is not misused. Legal challenges have emerged, questioning the policy’s authority and potential impact on innovation.

Companies Adjusting Hiring Practices

The new fee applies only to initial visa applications filed on or after September 21. It does not affect visa renewals or current holders. The policy also exempts those switching from other visa types, like student visas.Despite the cost, some firms continue their sponsorship programs. Nvidia’s CEO confirmed the company will cover all associated fees for new applicants. Other businesses, however, have made immediate changes to their hiring strategies.

Which Firms Have Stopped Sponsoring New H-1B Visas?

Cognizant, a major IT consultancy, now lists job postings that exclude applicants needing sponsorship. A company spokesperson told Newsweek the policy is expected to have a limited near-term operational impact. The firm’s global scale provides alternative ways to serve its US clients.Intuitive Surgical has publicly ceased sponsorship for roles requiring H-1B visas. The medical technology company updated over 100 job postings on its website. The notices cite uncertainty created by the executive order as the reason.Tata Consultancy Services, a top H-1B sponsor, will no longer use the program for new hires. CEO K. Krithivasan told Indian media outlets the company has enough H-1B workers in the US. The firm will now focus on hiring local American talent.Walmart has also paused hiring new candidates who require the visas. This was confirmed by the BBC and reported by Bloomberg. The retail giant stated it remains committed to hiring the best talent while being thoughtful about its H-1B approach.

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The new $100,000 fee is reshaping how top companies recruit global talent through the H-1B visa program. This significant policy shift prioritizes American workers but sparks debate over its long-term effects on the US tech sector and innovation landscape.

Info at your fingertips

What is the new H-1B visa fee?

The Trump administration introduced a $100,000 fee for new H-1B visa applications. This fee only applies to initial petitions filed after September 21, not renewals.

Which companies have stopped H-1B sponsorship?

Several major firms have paused new H-1B sponsorship. These include Cognizant, Intuitive Surgical, Tata Consultancy Services, and Walmart.

Are any companies still sponsoring H-1B visas?

Yes, some companies continue to sponsor new applicants. Nvidia has publicly stated it will cover all associated fees for its H-1B candidates.

How does this affect current H-1B visa holders?

The new policy does not impact current H-1B visa holders. Their renewals are also exempt from the additional $100,000 fee.

Why was this new fee implemented?

The administration states the fee aims to prevent system misuse and protect American jobs. It is designed to ensure the program recruits top talent, not cheaper labor.