(UNITED STATES) A new $100,000 H-1B fee for skilled workers applying from abroad, imposed by the Trump administration and effective September 21, 2025, is already pushing American companies to rethink where and how they hire. The policy, set to last 12 months unless extended, applies only to new H-1B petitions filed after the Effective date for workers currently outside the United States 🇺🇸. It does not affect workers with existing approvals or valid visas. Industry leaders say the measure amounts to a sweeping visa clampdown that will redirect hiring and investment toward offshore hubs, with India emerging as the biggest winner.
Officials framed the move as a response to abuse in the H-1B program, citing rapid growth of H-1B usage in the IT sector, where the share rose from 32% in 2003 to over 65% in recent years. They also pointed to instances where companies laid off U.S. staff while expanding H-1B hiring at scale. In one cited case, a software company won approvals for more than 5,000 H-1B workers in FY 2025 while announcing over 15,000 layoffs. The administration argues the steep H-1B fee will slow this pattern and push employers to recruit and train domestically.
Policy change and immediate effects
The fee fundamentally changes the cost calculus for high-skilled hiring. For an employer looking to bring in a software engineer from outside the United States 🇺🇸, the upfront cost now includes the normal filing and compliance expenses plus the $100,000 supplemental charge. While the rule leaves existing H-1B holders and approved cases untouched, it sharply raises the cost of moving fresh talent into the country.
According to analysis by VisaVerge.com, the new price point is forcing firms to reconsider cross-border mobility plans and accelerate offshore build-outs.
Key details of the new measure include:
– Effective date: September 21, 2025
– Duration: 12 months, unless extended
– Scope: Applies to H-1B petitions for workers currently outside the United States 🇺🇸
– Coverage: Only new petitions filed after the effective date
– Exemptions: Does not affect workers with existing approved petitions or valid visas
Employers say this sudden cost shock makes long-term workforce planning harder. Instead of sponsoring talent to relocate, many are expanding engineering teams where the workers already live. The result: deeper investment in global capability centers and a faster shift of high-value projects to offshore locations.
Why India stands to gain
India’s technology ecosystem is well-placed to absorb this demand:
– Over 1,700 Global Capability Centres (GCCs) currently host multinational operations.
– Projections show GCCs in India could reach 2,200 by 2030.
– These centres now handle advanced work such as artificial intelligence, cybersecurity, drug discovery, luxury automotive design, and full product development.
– 50% of Fortune 500 companies operate GCCs in India, employing about 1.9 million professionals and generating $65 billion in annual revenue.
– By 2030, GCC employment is expected to rise to 2.8 million with revenues topping $100 billion.
India’s broader IT sector—valued at $283 billion and contributing nearly 8% of GDP—provides the talent pipeline that supports this growth. American firms, especially in technology and financial services, are increasingly building in-house India-based GCCs rather than relying on third-party outsourcers. Executives describe this model as a way to keep tighter control of processes while avoiding the uncertainty and added cost tied to U.S. visa policies.
A growing pool of leaders in India—many with U.S. experience—are returning to lead these centers, deepening local leadership and making the option even more attractive.
Corporate moves and global fallout
For many employers, the choice is evolving from “hire locally or sponsor H-1B” to a third option: build teams abroad and keep them there. Companies are moving specialized work into their GCCs to control costs and meet timelines. Typical functions shifting offshore include:
– Cloud architecture
– Data engineering
– Machine learning
– Enterprise platforms
This reduces exposure to shifting U.S. policy, a priority for boards planning multi-year technology roadmaps.
Other countries also stand to benefit:
– Mexico and Colombia — nearshore options with time-zone alignment to the U.S.
– Canada 🇨🇦 — established tech hubs and immigration pathways seen as more predictable
These locations help maintain delivery speed without paying elevated U.S. sponsorship costs. The cost-effectiveness of this approach will depend partly on U.S. policy proposals such as the HIGHER Act, which would impose a 25% tax on offshore outsourcing. If enacted, that tax could diminish the savings of offshoring and nearshoring.
Labor market implications in the U.S.
The U.S. labor market picture is complex. Unemployment among recent STEM graduates has increased in some fields:
– Computer science graduates: 6.1% unemployment
– Computer engineering graduates: 7.5%
These rates are reportedly more than double those for majors like biology or art history. This raises questions about skills match, entry-level hiring, and how companies weigh experience versus potential.
- Supporters argue higher barriers will push employers to invest in training U.S. graduates.
- Critics counter the policy simply pushes work offshore, reducing chances for junior U.S. workers to gain on-the-job experience with flagship projects.
Recruiters report roles once tied to relocation—such as principal data scientist or senior DevOps engineer—are now being posted in Bengaluru, Hyderabad, Pune, or Toronto instead of San Francisco or Austin. Companies say they can still access top-tier skills, but by anchoring teams in markets with steady pipelines of engineers and fewer immigration hurdles. Some executives admit they previously relied on H-1B hiring when domestic recruiting slowed or salaries surged; the new fee removes that pressure valve.
Career and workforce shifts
The policy affects how workers think about careers. Early-career engineers and data analysts who once aimed to enter the United States via H-1B sponsorship are adjusting expectations. Many now target leadership tracks inside GCCs, working on global products without relocating.
This trend contributes to:
– A reverse brain drain of experienced managers returning to India to lead teams.
– Stronger local leadership pools in offshore hubs.
– More engineers choosing to remain in-country while contributing to global products.
Industry groups are watching the next 12 months closely. Two scenarios matter:
1. If the fee sunsets as written after 12 months, there could be a rush to file new petitions.
2. If the fee is extended, the offshore build-out path will likely harden into standard practice.
Employers emphasize the need for predictability: they can tolerate tougher rules if those rules are stable, but not sharp swings that upend project budgets mid-cycle.
Guidance and key takeaways
Because H-1B rules are technical and changeable, applicants and employers should rely on official guidance. The U.S. government’s primary overview of H-1B specialty occupations is available on the USCIS H-1B page: https://www.uscis.gov/working-in-the-united-states/temporary-workers/h-1b-specialty-occupations.
While the new $100,000 H-1B fee is a separate supplemental charge announced by the Trump administration, the USCIS resource explains core eligibility and petition basics that remain in place.
Key themes as the visa clampdown reshapes plans:
– Cost is now the top factor in cross-border hiring for many firms.
– Offshore centers are moving up the value chain and taking on more strategic work.
– The fastest benefits go to ecosystems with strong talent pipelines and leadership—conditions India has built over decades.
– Nearshoring to Mexico, Colombia, and Canada 🇨🇦 is rising for teams that need time-zone alignment.
– U.S. policymakers are exploring ways to steer work and investment back home, including proposed taxes like a 25% levy on offshore outsourcing.
Politically, the measure reflects President Trump’s stance on employment-based immigration. Supporters call the fee a correction that protects U.S. workers and reins in program misuse. Opponents call it a blunt instrument that punishes employers with legitimate skill needs and pushes cutting-edge work out of the country.
For now, the market response is clear: companies are not abandoning high-skilled projects; they are relocating them. GCCs in India are scaling teams that build core products, manage global platforms, and ship releases on the same timelines once expected from U.S.-based groups. The $100,000 H-1B fee has made location strategy the main lever for cost control and delivery speed.
The next test comes as budgets roll over into the new calendar year. Two likely outcomes:
– If the fee remains, legal and HR teams will plan offshore-first approaches, treating relocation as the exception.
– If the fee ends, pent-up demand may return to U.S. filings—but many firms will retain offshore capacity built during the fee period.
Either way, the center of gravity has shifted, and that may be the policy’s most lasting effect.
This Article in a Nutshell
The U.S. administration announced a $100,000 supplemental fee on new H-1B petitions filed for workers currently outside the United States, effective September 21, 2025, for an initial 12-month period unless extended. The rule spares existing approved petitions and valid visas but sharply raises the cost of relocating new high-skilled talent to the U.S. Employers are responding by accelerating offshore build-outs, expanding Global Capability Centres—especially in India—and nearshoring to Mexico, Colombia and Canada. Supporters say the fee targets misuse of the H-1B program and encourages domestic hiring and training; critics argue it will push strategic work abroad and reduce entry-level opportunities for U.S. STEM graduates. The policy’s lasting effect depends on whether the fee is extended and how legislative proposals like the HIGHER Act alter incentives.
