H-1B visa applications drop after fee hike to $215 per entry

Key Takeaways

• H-1B visa applications dropped 25% for fiscal year 2026, the largest decline in recent years.
• Fee hike: registration now costs $215 per application, up from $10, sharply raising employer costs.
• Stricter anti-fraud rules and Trump-era immigration policies deter mass filings and increase denials.

Applications for the H-1B visa have fallen sharply for the 2026 fiscal year, marking the largest drop seen in several years. The drop is not the result of just one issue but from a mix of changes affecting employers, skilled foreign workers, and the overall U.S. tech industry. The most important reasons behind this decline include the sharply higher H-1B visa fee, new rules to stop fraud, and tighter immigration policies—many of which date back to decisions made during President Trump’s time in office. These factors, along with economic worries and large layoffs in the tech sector, have caused concern for both companies and workers. Let’s take a closer look at what is causing this plunge, what it means, and how it fits into the bigger picture of U.S. immigration policy and business needs.

What’s Behind the Drop? The Data Tells the Story

The latest government data shows a 25% year-over-year fall in H-1B visa applications heading into the 2026 hiring cycle. For context, the H-1B is a special work visa that many U.S. employers use to bring in foreign professionals—for example, software engineers and scientists. The last few years have seen high demand for these visas. Now, for the first time in a while, we are seeing a big drop.

There are four main reasons this is happening:

1. Steep Fee Hike Makes Filing More Costly

The U.S. government has raised the H-1B visa registration fee sharply—from only $10 for each application to $215 per application for the 2026 season and beyond. This increase is not minor. For companies, especially big ones that often submit hundreds or even thousands of applications, this jump means a huge increase in spending each year just for a chance at hiring a foreign worker.

• If a company wants to file 1,000 H-1B registrations, its basic cost rises from $10,000 to $215,000—without any guarantee that one will be chosen in the lottery.
• Smaller companies may now struggle to shoulder this new cost, making hiring global talent from outside the United States 🇺🇸 much harder.

The fee is also non-refundable. If a registration is not selected, employers are not given their money back. This makes companies think twice before entering workers into the H-1B process unless they are very sure about making the hire.

1. Stricter Immigration Policies—Most Notably from the Trump Years

Tough new immigration rules and a more questioning tone from U.S. officials have added more hurdles for both firms and workers. Many of these changes were first put in place during President Trump’s time in office. President Trump’s “Buy American, Hire American” executive order was a key part of this approach. The order called on agencies to give jobs to American workers first, raise pay and skill requirements for foreign workers, and make it harder to file applications that did not meet high standards.

• During President Trump’s administration, denial rates for H-1B petitions soared from only 4% in 2015 to as high as 15% by 2018, shaping how companies view the chance of success.
• Today, requirements for paperwork are tougher. The government often asks for more proof about a job’s details and a worker’s skills.
• Social media checks and deeper background reviews can result in more delays or rejections.

Employers now face much more risk and uncertainty when they consider filing an H-1B petition. As reported by VisaVerge.com, the attitude set during President Trump’s time has not fully vanished and continues to influence how rules are enforced and how applicants are checked.

1. Fraud Crackdown—New Policies Keep Companies from Gaming the System

In recent years, the United States Citizenship and Immigration Services (USCIS) has ramped up its fight against fraud in the H-1B program. One of the biggest changes is the move to a “beneficiary-centric” lottery system. In simple words, this means all registrations for the same worker are grouped together so a person cannot be entered many times by different employers just to boost their odds of being picked.

• This lottery change attacks the problem of duplicate registrations, which were common before and led to artificially high application numbers.
• Companies caught trying to game the system may face investigations, denial of applications, revocation of previously approved petitions, or even criminal charges.

Employers who used to rely on mass filings or multiple applications for the same worker now face heavy risks. Fraud investigations have become stricter, and the rules are enforced by checking data across different filings. Details about this new system can be found on the USCIS H-1B Electronic Registration Process page.

1. Economic Worries and Layoffs Put the Brakes on Hiring

The technology sector, a top user of the H-1B visa, has seen sweeping layoffs and slower hiring starting from late 2022 and into 2025. More than any other cause, this has changed company plans for new hires. Fear of a possible recession, falling company profits, and investor pressure have all combined to slow or even freeze hiring from abroad.

• Startups and large firms alike are spending less on new jobs.
• Many are choosing to keep fewer foreign workers in the pipeline if they are unsure that budgets will allow for new hires soon.

The effect is simple: no matter how talented the foreign worker, companies are less likely to apply for a new H-1B if they fear layoffs or if their budgets have tightened.

Spotlight on Indian Professionals: Who Feels the Impact?

Historically, Indian professionals have filled more than 70% of all H-1B visas, especially in technology and engineering jobs. As rules tighten and fees rise, these workers—and the companies that wish to hire them—face the greatest challenges.

• For many Indian graduates and skilled professionals, the H-1B process is the main way to work in the United States 🇺🇸.
• New costs or delays can mean the difference between getting a U.S. job and needing to look elsewhere, at least in the short term.
• Indian IT firms and tech giants have traditionally used high-volume H-1B filings. With the new fee and anti-fraud rules, mass filings now pose higher risks and less reward.

A Quick Reference: What’s Driving the Drop-Off?

Let’s sum up the major reasons why fewer companies and workers are jumping into the H-1B race:

How Has the H-1B System Changed? Comparing Today with Just a Few Years Ago

Before the recent changes, the H-1B visa was seen by many as one of the most direct and reliable paths for skilled non-Americans, especially from India 🇮🇳, to work and settle in the United States 🇺🇸. Job seekers, both in the U.S. and abroad, would watch for the opening of registration each March, and companies would prepare teams to file as many qualified candidates as possible.

The fee hike changes the cost calculation for every employer, but the deeper changes in mindset come from both the anti-fraud push and the legacy of President Trump’s directives. Evidence of this can be found in the sustained higher rates of H-1B denials from his time, even after new leadership entered office. Some past flexibility in proof and eligibility has tightened, causing some employers to step back and reconsider the value of going through the complicated and long process for each H-1B hire.

Rising Fees—Not Just a Money Issue

The sharp fee hike is not just about money paid. Each H-1B registration represents a bet that the worker will be selected in the random lottery and that the petition will be approved. Since both are uncertain, the risk of paying more—without payoff—has led many companies, especially those hiring in bulk, to scale back or skip the lottery.

• High-volume firms may file fewer registrations, especially if they suspect rule changes or low odds of winning.
• Many small businesses may avoid the H-1B process altogether, believing the risks and costs are too great.

Some analysts say that the fee hike, along with the new registration process, has “reset” employer behavior and could lead to lower H-1B numbers for years to come if there are no further changes to policy.

Crackdown on Duplicate Filings—Cleaning Up the Lottery

Prior to the new beneficiary-centric system, mass duplicate filings were common. This sometimes gave well-funded firms an edge, allowing them to submit for the same person many times through affiliated companies or partners. Now, with more advanced checks, these practices are flagged more easily.

• Companies are now forced to focus on genuine, serious hires rather than trying to “game” the system.
• Many earlier applications may have been inflated by duplicate entries; the recent drop could reflect the system becoming more honest and transparent as a result.

Lasting Influence from Trump-Era Policy

No discussion about H-1B policy changes is complete without mentioning the effect of President Trump. His administration pushed through orders that were clear: protect American jobs, raise the bar for foreign worker entry, and reduce what he framed as “abuse” of visa programs.

• The “Buy American, Hire American” executive order was a turning point, leading agencies to adopt higher scrutiny for all visa filings.
• This period also saw changes in how job roles were classified, leading to requests for more proof and tighter definitions of “specialty occupation” (jobs that require special knowledge and at least a bachelor’s degree).
• While some restrictions have loosened since, the habit of being extra careful and requiring more proof has stuck.

Many companies, especially in the tech field, still fear high denial rates and extra checks, so they file fewer H-1B petitions or turn to other global hiring options.

Different Sides to the Drop in Numbers

Not all observers agree that the drop in H-1B applications is a bad thing. Some claim that the new system, higher fees, and anti-fraud efforts simply cut out weak or dishonest filings. They believe it leaves more room in the lottery for genuine applications, raising the odds for serious employers and skilled workers who follow the rules.

On the other hand, critics argue that the fees and tighter rules put too much pressure on honest small businesses and hurt America’s ability to attract global talent. They warn that skilled workers may now seek jobs in other countries if the process in the United States 🇺🇸 becomes too hard, expensive, or uncertain.

Long-Term Effects: What Comes Next?

Looking ahead, several possible outcomes are taking shape:

• If the fee hike and strict anti-fraud process remain, large companies may keep lowering their number of applications, believing the risks outweigh the rewards.
• Skilled foreign workers may start bypassing U.S. opportunities in favor of countries with simpler, faster, or cheaper visa systems.
• The U.S. could feel the effects in its tech and research sectors, which have benefited for decades from hiring top talent from around the world.

For now, employers who still wish to hire through the H-1B system must pay close attention to new costs, keep up with the latest rules, and prepare quality filings. Workers must be ready for higher competition and more careful document checks.

For official updates and current forms related to the H-1B program, employers and workers should always refer to the USCIS H-1B Electronic Registration Process and consult recognized information hubs such as VisaVerge.com.

In summary, the sharp fall in H-1B visa applications for 2026 can be traced to a mix of much higher fees, new anti-fraud efforts, lasting effects from tough rules and policies started under President Trump, and ongoing worries about the U.S. economy. Each factor alone makes life harder for both companies and workers; together, they explain the lowest H-1B numbers seen in recent years. The coming years will show if these trends push more global talent away, or if U.S. policy adjusts once more to changing business and workforce needs.

Learn Today

H-1B visa → A U.S. work visa allowing skilled foreign professionals, especially in tech and science, to work for American employers.
Beneficiary-centric lottery → A system grouping all applications for the same individual to prevent duplicate H-1B submissions by multiple employers.
USCIS → United States Citizenship and Immigration Services, the agency managing immigration services and visa programs like H-1B.
Buy American, Hire American → A Trump executive order prioritizing U.S. workers, tightening requirements for foreign labor through visas like H-1B.
Denial rates → The percentage of H-1B visa applications rejected by authorities, reflecting stricter review and higher standards.

This Article in a Nutshell

For the 2026 fiscal year, H-1B visa applications have plummeted 25%. Root causes include a massive fee hike, stricter anti-fraud rules, and persistent Trump-era policies. These changes burden employers, deter skilled foreign workers, and could reshape U.S. tech hiring for years, fueling concerns in a still-uncertain economic climate.
— By VisaVerge.com

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