Tech Firms Pause H-1B Sponsorship Amid $100K Fee Rule

Several leading tech employers are scaling back visa sponsorship after the Trump proclamation added a new $100,000 H-1B Fee on many first‑time petitions. The policy, issued on September 20, 2025, applies to new H‑1B filings for workers outside the United States starting September 21, 2025, and runs for 12 months unless extended. Companies say the sudden cost jump is forcing them to triage roles, prioritize candidates who already have work authorization, and rethink headcount plans for 2026.

The proclamation frames the surcharge as a way to reduce reliance on foreign labor and “put American workers first.” According to analysis by VisaVerge.com, early employer reactions are split: some big firms will still sponsor for mission‑critical roles, while others are pausing new filings for positions they view as lower priority. Attorneys report confusion over edge cases, prompting many employers to wait for additional government guidance before making large‑scale filings.

Employer responses and examples

Companies are already showing policy shifts in job postings and hiring language.

• Consulting and IT firms such as Deloitte, Cognizant, and Walmart have posted roles that either require current U.S. work authorization or state “no sponsorship” for new hires.
• Tata Consultancy Services (TCS) has said it will not sponsor new H‑1B filings under the new regime and will focus on local U.S. hiring.
• NVIDIA has pledged to keep sponsoring H‑1B candidates and to absorb the $100,000 surcharge for key positions.
• Smaller firms and startups say the fee could be a deal‑breaker for entry‑level or mid‑level roles where budgets are tight.

Employers and lawyers stress that, while the change is time‑limited, it is already reshaping recruiting plans for next spring and summer. For some teams the math is simple: one H‑1B hire now carries a six‑figure surcharge on top of regular government and legal costs, training, and onboarding. For others, the price is worth it to secure a rare specialist.

Job seekers are seeing fewer “visa sponsorship available” notes in postings that once welcomed global talent.

Policy changes overview

Key elements of the proclamation and how employers interpret them:

• Surcharge amount: $100,000 on new H‑1B petitions.
• Effective date: Petitions filed on or after September 21, 2025 (policy issued Sept 20, 2025).
• Duration: 12 months (may be extended).
• Scope: Applies when the beneficiary is outside the U.S. and to first‑time filings filed on/after the effective date.
• Exemptions (as summarized for employers):
  • Does not apply to petitions filed before Sept 21, 2025.
  • Does not apply to current H‑1B holders, renewals, or change‑of‑status filings inside the U.S. (based on employer summaries).
• Employers are planning as if the surcharge could be extended beyond 12 months.

Companies are adjusting to several immediate realities:

• Non‑critical roles are far less likely to receive visa sponsorship.
• Hiring teams prefer visa‑ready candidates (e.g., OPT holders, cap‑exempt H‑1B holders).
• Legal teams are reviewing gray areas—cap‑exempt petitions, changes of employer, and first‑time change‑of‑status filings from within the U.S.
• Until agencies clarify those points, many employers will file only high‑value, clear cases.

Alternate paths for affected workers

Workers impacted by the surcharge are exploring other routes into the U.S. workforce:

• Cap‑exempt H‑1B roles (universities, nonprofits).
• O‑1 visas for individuals with extraordinary ability.
• Direct employment‑based green card sponsorship where feasible.

Immigration attorneys report a spike in O‑1 screenings among researchers, machine‑learning engineers, and startup founders who can document major awards, patents, or published work. Others are asking whether an employer might sponsor permanent residence first and transfer the employee later if business needs allow.

Legal and regulatory landscape

Legal challenges are already underway. Coalitions seek judicial review, arguing the rule harms U.S. competitiveness and exceeds executive authority. These suits could change timelines or enforcement, but for now the fee remains in effect.

Employers are closely monitoring federal notices and updates to see how consulates and USCIS will handle case processing during the proclamation window. Agencies are expected to release more instructions covering exceptions—such as roles deemed in the “national interest”—and to clarify interactions with petitions outside the regular cap.

Industry impact and employer strategies

Industry groups warn the policy’s impact is acute for smaller employers.

• Large platform companies might absorb a few six‑figure fees to secure senior specialists.
• Startups with limited budgets may pause international hiring and rely more on offshore contractors.
• Founders warn this could delay product roadmaps and shift hiring offshore—an outcome critics say contradicts the proclamation’s stated goal.

Companies still sponsoring under the new rules are narrowing focus to “must‑have” roles such as:

• AI research
• Advanced semiconductor design
• Safety‑critical systems
• Specialized cloud security

Recruiters are tightening timelines to ensure cross‑border hires file quickly and cleanly given the $100,000 risk. Some firms are creating internal review committees to score roles on impact and revenue potential before approving new H‑1B petitions.

Impact on applicants and hiring teams

For international students and early‑career workers, the major changes are:

• Fewer opportunities for generalist, non‑strategic roles.
• Preference for visa‑ready candidates (those with current U.S. authorization).
• Applicants abroad face a tougher path because the surcharge targets beneficiaries outside the U.S.
• Alternatives may become more attractive: cap‑exempt roles, O‑1, or U.S. graduate programs that provide training time and employer connections.

Key summary points:
– Fewer sponsorships for non‑critical roles.
– Visa‑ready candidates will be prioritized.
– Rules clarity is still evolving; many employers are waiting for guidance.
– Alternative immigration paths are seeing more interest.
– Court activity could change implementation, but no change to the surcharge window yet.

Recruiters note the labor market impact varies by company size:

• Large firms can pay for rare skills.
• Startups are more likely to pause international hiring and use overseas contractors.
• Midsize companies may hire locally for near‑term needs while delaying international start dates to the end of the 12‑month window in case the policy expires.

Employees in the U.S., particularly those nearing the end of OPT, should prepare by keeping resumes current and gathering strong references. Candidates outside the U.S. should target roles tied clearly to revenue or product milestones, as those are more likely to justify the $100,000 spend.

Resources and next steps

For official policy details and future updates, review USCIS’s H‑1B resources at the agency’s page for temporary workers, including H‑1B specialty occupations: USCIS: Temporary Workers (H‑1B).

Agencies are expected to release additional guidance on exceptions, national‑interest determinations, and how the proclamation interacts with petitions outside the regular cap.

Bottom line

As budget season approaches, companies face tough choices:

1. Keep limited sponsorship but set a high bar, funding only a few filings.
2. Hire only candidates who don’t require new visas.
3. Shift more roles offshore rather than pay the surcharge.

All three paths point to the same short‑term outcome: fewer H‑1B opportunities in non‑critical roles and a sharper focus on proven, high‑impact hires while the $100,000 H‑1B Fee is in effect.