- President Trump met with Indian CEOs to discuss H-1B wage-based selection and higher outsourcing costs.
- DHS finalized a rule giving higher-paid roles better odds in the FY 2027 visa lottery.
- Reports indicate a potential $100,000 fee for certain new H-1B petitions to deter lower-wage hiring.
(DAVOS, SWITZERLAND) — President Donald Trump used a private World Economic Forum reception with Indian chief executives on January 21, 2026, to spotlight how tighter H-1B rules and higher costs may alter U.S. hiring and Indian outsourcing.
Held after Trump’s Davos keynote, the closed-door gathering came as Indian exporters face a 50% tariff on certain shipments to the United States, and as DHS rolls out an H-1B weighted selection system for the next cap cycle.
Meeting attendees and context
The Davos reception signaled the immigration and trade issues are increasingly linked in corporate workforce planning. Indian companies have long relied on H-1B workers for U.S. client projects, while U.S. officials have argued the visa should tilt toward higher-paid roles.
Natarajan Chandrasekaran of Tata Sons attended the reception alongside Salil S. Parekh of Infosys and Srini Pallia of Wipro, three leaders from firms that routinely file large numbers of H-1B petitions.
Sunil Bharti Mittal of Bharti Enterprises, Anish Shah of Mahindra Group, Sanjiv Bajaj of Bajaj Finserv, and Hari S. Bhartia of Jubilant Bhartia Group also joined the meeting.
Treasury Secretary Scott Bessent accompanied Trump in Davos, giving executives access to a senior U.S. economic policymaker as the tariff dispute and visa changes land at the same time.
H-1B weighted selection rule and timing
DHS finalized the H-1B weighted selection rule on December 23, 2025, with USCIS set to apply it starting February 27, 2026, for FY 2027 cap registration.
The change replaces a purely random draw with a selection that gives higher-paid roles a greater probability.
Under the rule, eligible cap registrations remain in the pool, including roles at lower wage levels. USCIS then applies weights tied to compensation, typically using the Department of Labor’s wage levels as the organizing frame.
That means an employer that registers a beneficiary tied to a higher wage level gets better odds than a registration tied to Level 1 and Level 2 wage brackets. Selection is still a lottery, but the chances are no longer equal.
Reported fees and employer reactions
Reports circulating among employers and immigration attorneys have also pointed to a $100,000 fee for certain new H-1B petitions, described as a deterrent against use of the program for lower-wage placements.
Companies assessing budgets for FY 2027 are modeling whether the charge would apply to their planned filings and how that would affect hiring strategies.
Actions to consider ahead of the FY 2027 cap registration under the February 27, 2026 rules.
- Confirm offered pay aligns with the correct prevailing wage level before FY 2027 cap registration begins under the February 27, 2026 rules.
- Plan for possible higher filing costs, including the reported $100,000 fee for certain new H-1B petitions, and document who will pay.
- Track USCIS and DHS updates closely, since selection odds may shift by wage level and influence job offers and start dates.
- Use official USCIS guidance for the cap registration process: USCIS H-1B electronic registration process
FY 2026 cap status and registration trends
USCIS has already said demand remains high. For FY 2026, the agency announced it reached both the 65,000 regular cap and the 20,000 master’s cap.
USCIS data show fewer entries in the system even as the cap filled. Eligible registrations for the FY 2026 cap fell 26.9% versus FY 2025, dropping to 343,981 from 470,342.
Officials have tied that decline to stricter anti-fraud steps and enforcement of the “one registration per beneficiary” rule, which curbed duplicate entries and changed filing strategies for large employers.
| Policy/Event | Effective Date | Who is Affected | Impact |
|---|---|---|---|
| H-1B weighted selection final rule (DHS) | December 23, 2025 (finalized) | Employers and H-1B applicants in the cap | Raises selection probability for higher-paid roles while keeping all wage levels eligible |
| Weighted selection applied to FY 2027 cap registration | February 27, 2026 | Employers registering cap-subject beneficiaries | Changes lottery mechanics for FY 2027 selections |
| Reported $100,000 fee for certain new H-1B petitions | January 2026 (reported rollout) | Some employers filing new H-1B petitions | May increase hiring costs and discourage lower-wage placements |
| FY 2026 cap status | FY 2026 | Cap-subject employers and H-1B applicants | 65,000 regular cap and 20,000 master’s cap reached |
Overview of cap allocations and reach for FY 2026.
| Cap Type | Allocated | Reached | Notes |
|---|---|---|---|
| Regular cap | 65,000 | Yes | USCIS said it received enough H-1B petitions to meet the statutory limit for FY 2026 |
| Master’s cap | 20,000 | Yes | Advanced-degree exemption also reached for FY 2026 |
H-1B applicants tied to Level 1 and Level 2 wage brackets may see lower odds in the February 2027 cycle because higher wage levels receive more weight.
For Indian IT services firms, the weighted approach targets a central feature of the traditional delivery model: staffing U.S. projects with early-career or mid-level roles at lower wage levels.
If higher wages become the best path to selection, firms may need to rebalance teams toward more senior roles or shift work outside the United States. Tata-linked operations, Infosys, and Wipro also face a straightforward cost question.
If the reported $100,000 fee applies to certain new H-1B petitions, a company may either pay it, reduce filings, or substitute U.S. domestic hires who often cost more than offshore staffing.
In many cases, that substitution is not quick. Client timelines, security clearances, and location requirements can constrain whether firms can replace cap-subject H-1B hiring with domestic recruitment.
Trade, broader immigration limits, and planning
Trump’s trade posture adds another layer for corporate planners. As of January 2026, Indian exporters have dealt with a 50% tariff for about four months, and executives have sought signs of relief that could be folded into a broader U.S.-India trade deal.
Even when tariff policy sits outside immigration agencies, companies often treat the issues together because both can reshape cross-border costs, staffing footprints, and tax planning for multinational groups.
The Davos meeting also landed amid broader limits on legal immigration. The administration has said it aims to reduce projected legal immigration by over 600,000 during the President’s second term, a target watched closely by employers dependent on global hiring.
Family-based immigration has tightened, too. A December 16, 2025 proclamation restricted U.S. citizens from sponsoring certain relatives from 39 countries, adding pressure on globally mobile workers who weigh family stability with job opportunities.
Applicants tracking visa backlogs often consult the State Department’s Visa Bulletin as part of long-term planning, even when the H-1B process itself runs through USCIS.
For now, the immediate marker is the shift in how the cap lottery will be run for FY 2027. Employers preparing registrations after February 27, 2026, are likely to scrutinize wage levels more closely.
H-1B applicants may weigh whether proposed compensation places them in the Level 1 and Level 2 wage brackets that could face weaker odds in February 2027.
This article discusses immigration policy changes and high-stakes regulatory updates. Readers should consult official USCIS guidance and DHS notices for current rules.
Tax implications are described in context of policy environment; for filing and compliance, seek qualified tax professional advice.
