“The new visa charge of $100,000 will make it prohibitively expensive for U.S. employers,” warned Neil Bradley of the U.S. Chamber of Commerce. That one sentence captures the shockwave now propagating among America’s corporate hiring plans. In September 2025, the Trump administration imposed a one-time $100,000 charge on new petitions for H-1B visas for foreign workers, instantly redoing the arithmetic for firms that have long relied on global talent.
For decades, the H-1B program has been a lifeline for industries desperate for talent-from engineering staff in Silicon Valley to hospitals looking for doctors. But with the fee now in place, some of America’s biggest employers are putting sponsorships on hold while others scramble to get compliant. The court fight is just beginning, but the near-term effect is already felt in the realm of employment notices and corporate policy shifts.
The following listicle outlines top companies pulling out of H-1B sponsorship, why they are pulling out, and what this means for the future of high-skill immigration in the U.S.
1. Cognizant Caps Recruitment to U.S.-Approved Candidates
The New Jersey giant IT consulting company Cognizant has quietly reduced the number of candidates. In an Oct. 14 software engineer posting in South Carolina, the company said it would accept only those candidates legally qualified to work in the U.S. on their own merit without employer sponsorship.
In a statement, the company said the presidential proclamation will have “limited near-term impact” on business due to the size and international footprint of the company. Cognizant has steered clear of visa dependence in the past few years by targeting certain technology roles that fill out U.S. hiring. Similarly, it has invested in local talent, well-positioned to ride through policy shifts without major disruption.
2. Intuitive Surgical Halts Sponsorship Over Uncertainty
California med-tech giant Intuitive Surgical rescinded H-1B sponsorship late last month, as marked by over 100 job ads with notices. The firm employed vagueness from the executive order to put visa offers on hold temporarily.
The timeout bridges engineering to regulatory issues. In a very niche medical technology business, the timeout is anticipatory-not a coup-but it does show how policy can reverberate so abruptly through recruitment campaigns in niche areas.
3. Tata Consultancy Services Values Local Talent
Tata Consultancy Services, a perennial top H-1B sponsor in the past, isn’t hiring at all under the program. CEO K. Krithivasan told Indian media that TCS has sufficient H-1B employees in the U.S. already and will now focus on internal hiring.
TCS Chief HR Officer Sudeep Kunnumal said that TCS has considerably localized its U.S. workforce and feels its business model has the ability to change fast in response to immigration policy. This is in tune with general trends among Indian outsourcing behemoths, which have been hiring local staff and moving delivery offshoring ahead of expected tighter visa regulations.
4. Walmart Stops H-1B Hiring for Corporate Jobs
Retail giant Walmart, the largest private employer in the country, has stopped hiring applicants needing H-1B visas. The move was first reported by Bloomberg, later confirmed to the BBC by the retailer. It employs about 2,390 H-1B holders, placing it ninth among all U.S. employers of H-1Bs.
A company spokesperson said Walmart remains committed to investing in the best talent and is “thoughtful” about its H-1B strategy. Case-by-case exceptions may be made, but the delay is justification for the high cost’s deterrent effect even to an organization the size of Walmart.
5. Legal Challenges Mount Against the $100K Fee
The U.S. Chamber of Commerce sued on the basis that the fee is illegal under the Immigration and Nationality Act, which requires visa fees be an approximation of government processing costs. Chamber policy director Neil Bradley added that the fee would disproportionately hit start-ups and small- and mid-sized businesses, potentially damaging America’s competitive advantage in innovation.
The other plaintiffs had already filed suit last October, and immigration lawyers anticipate protracted court fights. In the meantime, USCIS made it clear that only new petitioners overseas will pay the fee and not changes of status e.g., from F-1 student visa to H-1B if conducted in the domestic US.
6. Indian IT Industry Gears Up for Revenue
Shifts With more than 70% of the H-1B visas going to Indian nationals, the impact of the fee has hit India’s $283 billion IT industry straight. Industry lobby group Nasscom forecasts risks on onshore projects, repricing concerns, and slowed client work. The companies can pass along more of the costs to American consumers or focus on more off-shore delivery and far-flung contracting. This response could dampen traditional “brain drain” pressures, as more high-value activity remains in the tech centres of India, enriching surrounding ecosystems in Bengaluru, Hyderabad, and Pune.
7. Diverse Economic Projections for American Labor Markets
Economists disagree on the long-term impact the fee will have on the economy. Some predict short-term gains for domestic technology workers as companies respond by switching to homegrown employees. Others reference studies that find that for every H-1B employee, companies will be able to contribute to aggregate employment, including among American employees. This policy would constrain both the level and the diversity of skill in the American workforce-most of all in the most modern technologies, where foreign collaboration has been a driver of competitiveness. The largest losers may include start-ups, universities, and hospitals-all with fewer resources to devote to lobbying compared to Big Tech.
The $100,000 H-1B fee already has adjusted employee hiring policies at America’s most powerful employers, from tech consultancies to retail behemoths. While the legal action would finally be able to reallocate or repeal the policy, the initial corporate reaction is a nervous reconfiguration of the talent streams. For foreign-born professionals, reaching American jobs becomes more difficult; for native workers, opportunities can increase though likely at the cost of less global integration in key sectors. The next several months will tell whether this is a bump or the start of the first stages of change in how America competes for the world’s best and brightest.
