TCS and Infosys to bear $100k H-1B fee for new petitions

(UNITED STATES) President Trump has imposed a $100,000 H-1B visa fee on certain new filings, a move that analysts say will land hardest on Indian outsourcing giants such as TCS and Infosys, whose U.S. business models depend on bringing in large numbers of new H-1B workers for client projects.

The presidential proclamation, titled “Restrictions on Entry of Certain Nonimmigrant Workers,” was signed on September 19, 2025. It applies to covered H-1B petitions filed on or after September 21, 2025, and runs for 12 months, expiring on September 21, 2026. While presented as a step to protect U.S. workers, the fee creates a steep new cost that could reshape hiring plans across tech, consulting, health care, and education in the United States.

Scope and USCIS guidance

U.S. Citizenship and Immigration Services (USCIS) later narrowed the scope. In guidance dated October 20, 2025, USCIS said the fee applies only to:

• “New” petitions for beneficiaries outside the United States who do not have a valid H-1B visa, or
• Cases requesting consular notification, port-of-entry notification, or pre-flight inspection while the worker is in the country.

USCIS also specified exemptions that matter for firms renewing large existing workforces. Exemptions include:

• Extensions
• Amendments
• Certain changes of status for workers already in the United States with a prior H-1B approval or visa issued before September 21, 2025

This line-drawing is critical because it separates routine maintenance of an existing H-1B population from the more expensive act of bringing in new workers.

“National interest” exemptions exist but are described as rare and require proof that the person poses no security or welfare threat — a high bar that many employers may struggle to meet without clear examples from the government.

Impact on Indian outsourcing firms

For TCS and Infosys, the policy hits at the point where contracts begin: staffing new projects with fresh arrivals. The source notes these firms — along with Wipro, HCL Tech, Tech Mahindra, and LTIMindtree — rely on H-1B workers for U.S. client delivery, and that the United States generates over half their revenue.

Key business effects include:

• Outsourcing firms often ramp up teams quickly and rotate specialized staff across borders. Each qualifying new petition carrying a $100,000 charge makes that model far less economical.
• These companies file high volumes of new cases tied directly to project staffing, unlike some U.S. tech giants that can shift more easily to local hiring.

Market reaction and analyst concerns

Early market reactions reflected the pressure on margins. According to the source material:

• American depositary receipts fell 2–4% for Infosys and Wipro after the announcement.
• Analyst Saurabh Sahu warned about margin volatility and the risk firms will be forced into faster shifts toward:
  1. Hiring more workers locally in the United States, or
  2. Moving work to nearshore locations
• Those shifts carry their own frictions and costs.

Contract economics and client pricing

Many outsourcing contracts are priced tightly. The source notes several economic frictions:

• Passing the $100,000 cost to clients faces pricing pressure and may be infeasible for many contracts.
• A single $100,000 charge can wipe out the economics of junior staffing models, where early-career engineers are placed on projects under close supervision.
• Firms may respond by hiring more experienced U.S.-based staff at higher wages. That could achieve the political aim of prioritizing resident workers while still raising costs for clients.

Comparison with U.S. tech giants

The source material highlights a contrast:

• In 2025, TCS and Infosys sharply reduced new filings, while Amazon and Google increased theirs.
• This does not mean Amazon and Google are immune — rather, their mix of roles, recruiting networks, and budgets may let them absorb or avoid the fee more easily than high-volume outsourcing firms.

Political arguments and criticisms

Supporters of tighter rules argue parts of the H-1B program invite misuse. The proclamation cites “systemic abuse” and a need to prioritize U.S. workers.

Critics counter:

• Blunt policy tools can punish employers who follow the rules.
• They can harm U.S. customers and public services that rely on specialty workers, especially where domestic shortages exist.

One historical data point the source notes is prior approvals where outsourcing firms secured thousands of visas, including “over 5,000” in one case amid U.S. layoffs — a fact that fuels the political narrative on both sides.

Collection mechanics, accounting, and uncertainty

A critical open question is who pays and when the government will collect the fee. The source material states:

• Employers must pay the fee under U.S. Department of Labor rules.
• It is unclear whether collection will occur at:
  • The petition stage,
  • Visa issuance, or
  • The port of entry.

That uncertainty creates problems for companies trying to predict cash timing, accounting treatment, and whether projects scheduled months ahead will suddenly become more expensive as teams are due to start.

Legal and political pushback

By December 2025, the source reports 20 states, led by California, sued the Trump administration over the fee. The states argue the fee would harm multiple sectors, including California schools hiring teachers.

Likely claims and downstream effects cited by the states include:

• Delayed hiring cycles
• Canceled contracts
• Shortages in hard-to-staff roles beyond Silicon Valley

Official resources and further analysis

USCIS has directed employers and workers to its official H-1B resources, including the overview page at:
https://www.uscis.gov/working-in-the-united-states/h-1b-specialty-occupations

Additional analysis from VisaVerge.com noted the narrow definition of “new” may spare many renewals but still hits the pipeline for new arrivals, which is where firms like TCS and Infosys historically refresh teams.

Bottom line

With the proclamation’s effective window already running, the immediate change is not a sweeping rewrite of immigration law but a price shock aimed at a slice of H-1B hiring.

For companies built around cross-border staffing, the $100,000 H-1B visa fee is more than another compliance cost — it is a direct test of whether their U.S. delivery model can survive when new entries suddenly become far more expensive.