Republican Governor Calls H‑1B a “Cottage Industry” Dominated by India

A Republican governor’s remark that the H‑1B visa has become a “cottage industry… mostly from one country” has reignited a long‑running fight over the high‑skilled work visa and its heavy use by nationals of India. As of August 27, 2025, there is no federal policy that targets Indian applicants, and no country‑specific cap or ban exists. The annual H‑1B cap remains 65,000 regular visas plus 20,000 for U.S. advanced degree holders. Still, the debate has real‑world effects, because agencies are tightening fraud controls and changing how renewals work—moves that will be felt most by Indian professionals and the U.S. employers who hire them.

Statements from Republican officials in states such as Texas and Florida framed the H‑1B system as a “cottage industry,” pointing to long‑standing patterns where Indian IT service and consulting firms sponsor large pools of candidates. While those comments stirred headlines in both the United States 🇺🇸 and India 🇮🇳, they have not produced a new law or agency rule that singles out one country. The Department of Homeland Security and the Department of State continue to run the program as a nationality‑neutral system grounded in statute and regulation.

The core facts remain stable: Indian nationals receive the majority of H‑1B approvals, historically 70–75%, because of the scale of India’s IT workforce and long‑standing cross‑border staffing models. That concentration fuels criticism during election cycles, including claims that outsourcing firms use the program to undercut wages. Supporters counter that the H‑1B brings needed skill sets—from software and chip design to biotech research—and that employers must still meet wage and specialty occupation rules.

According to analysis by VisaVerge.com, recent integrity reforms—especially a beneficiary‑centric lottery and tighter checks on multiple registrations—have already reduced abuse claims without changing the global nature of the applicant pool.

Recent Process Shifts and Policy Context

Two process shifts, not aimed at any one country but highly relevant to India, will define the next few months:

• The U.S. Department of State will end most interview waivers (“Dropbox”) for nonimmigrant visas, including H‑1B and H‑4, effective September 2, 2025. Only limited age‑based waivers will remain.
  • Before this change, many Indian H‑1B professionals used Dropbox to renew visas without a face‑to‑face interview, often receiving decisions in 7–10 business days.
  • After September 2, 2025, most will need to appear in person at a consulate, which can add travel, cost, and scheduling wait times.
• A narrow domestic H‑1B renewal pilot—launched in 2024 and continuing in 2025—allows some H‑1B holders with prior visas issued in India or Canada to renew inside the United States.
  • The pilot is limited: it does not cover first‑time H‑1B applicants or H‑4 dependents, and it operates in distinct batches with posted quotas.
  • Workers who don’t fall into the pilot must still visit a consulate abroad for visa stamping.

Fees and transaction limits have changed as well:

• H‑1B registration fee: $215
• Petition filing fee: $780 (or $460 for small employers and nonprofits)
• For FY2026 registrations, the daily credit card transaction ceiling for online filings rose to $99,999.99, easing payment problems for high‑volume employers.

Agencies have also intensified checks for duplicate or sham registrations and for inconsistent documentation—a response to past spikes in filings that overwhelmed the cap and raised integrity concerns.

Practical Effects for Employers and Workers

In law, the governor’s “cottage industry” attack has not changed the H‑1B statute. In practice, however, tougher anti‑fraud steps plus the end of many interview waivers create tangible impacts for employers and workers.

Example scenario:
– A mid‑career software engineer in Bengaluru with an approved H‑1B petition who previously used Dropbox during a short trip home will, starting September 2, 2025, most likely need an in‑person interview.
– That requires budgeting for travel that matches available appointments, carrying original documents, and allowing buffer time for administrative processing.
– Families with H‑4 dependents may face staggered appointments, childcare planning, and added costs.

U.S. companies—especially those relying on India‑based global delivery teams—should expect to adjust timetables:

• Project leads may need to phase start dates and brief clients about new interview steps.
• HR teams should time visa renewals to avoid peak holiday backlogs and maintain contingency plans.
• Employers that previously filed large numbers of registrations must align with beneficiary‑centric rules and ensure documentation is clean and consistent.

Standard H‑1B Process (Unchanged)

The standard H‑1B path remains the same, and USCIS has not added country filters to the lottery. The basic steps are:

1. Employer registration during the designated window, typically in March for the next fiscal year. The lottery runs if demand exceeds the cap.
2. If selected, the employer files Form I‑129 with USCIS, including required fees and supporting evidence. The petition establishes the specialty occupation role, the worker’s qualifications, and the offered wage. Link: Form I‑129, Petition for a Nonimmigrant Worker.
3. USCIS reviews and approves or denies the petition. Premium processing may be available, but it doesn’t increase lottery chances.
4. After approval, the worker applies for the visa at a U.S. consulate. With the end of Dropbox for most cases, applicants should expect an in‑person interview.
5. On visa issuance, the worker travels to the United States to begin or continue H‑1B employment.

Employers should also monitor the domestic renewal pilot; it can help certain onshore H‑1B workers avoid international travel for stamping, but eligibility is strict and slots fill quickly. It is not an option for new H‑1B entrants or H‑4 dependents.

Practical Planning Checklist

To reduce disruption, employers and workers should take these concrete steps:

• Build interview time into travel plans starting September 2, 2025. Check appointment calendars early and keep backups for critical project timelines.
• Keep documents ready: original degree records, detailed employer letters, and clear job descriptions. Consular officers often ask for specifics on client projects and location of work.
• Avoid duplicate lottery registrations. The beneficiary‑centric system and anti‑fraud checks can flag and deny linked entries, risking all related filings.
• Budget for fees: $215 to register, then $780 to file the petition (or $460 for small employers/nonprofits). Also account for premium processing and legal support if used.
• For those who qualify, consider the domestic renewal pilot to avoid consular appointments; monitor for new batches and posted instructions.

Political Narrative and Agency Focus

The political narrative will remain intense. Key perspectives:

• Critics argue the H‑1B supports an offshoring pipeline tied to India’s IT sector and can be used to undercut wages.
• Supporters say the H‑1B fills hard‑to‑staff roles across the economy—from cloud security to chip fabrication—and that employers must pay required wages and meet labor condition rules.
• Neutral analysts note that beneficiary‑centric selection and stronger anti‑fraud checks have curbed multi‑registration spikes that fueled abuse claims.

While interview waiver changes may slow renewals, there is no sign of a country‑specific H‑1B quota. Indian applicants will continue to represent a large share of approvals because of demand patterns—not because of nationality preferences. Agencies state their focus is on integrity and modernization, not nationality.

The government’s actions—ending most interview waivers, tightening the lottery, and piloting domestic renewals—aim at system integrity rather than targeting India.

Human and Business Stakes

The human stakes are clear:

• A delayed interview can postpone a family reunion.
• A denied duplicate registration can cost a young coder their first U.S. job.
• A well‑timed domestic renewal can spare a mid‑level engineer an expensive international trip.
• For a Dallas health‑tech startup awaiting a machine‑learning hire from Pune, a missed appointment can slow a product launch.
• For a Phoenix semiconductor plant, one approved H‑1B can unlock an entire production line.

Agencies continue to press forward with fraud checks and process improvements. The program remains nationality‑neutral, but the reality of demand means India will figure heavily in any discussion. Employers who plan carefully—and workers who prepare for interviews—can reduce friction caused by the end of Dropbox and the tougher lottery rules, even as political debate continues.

For official program details, USCIS maintains a central page on H‑1B rules, caps, and process updates: USCIS H‑1B Specialty Occupations. This is the best single source for confirmed federal policy and reflects the absence of any nationality‑based quota.