TCS, Infosys Face Impact of $1,00,000 H-1B Visa Fee Under Trump Administration

The Trump administration has imposed a new $1,00,000 fee on each new H-1B worker hired from outside the US, significantly increasing costs for IT firms like TCS and Infosys, as per Bloomberg report.  

This move is expected to reshape hiring and offshore practices among top visa sponsors. 

High Fee Targets Major H-1B Employers 

Tata Consultancy Services (TCS), Infosys, and Cognizant Technology Solutions are among the multinational IT firms most affected by the new $1,00,000 H-1B visa fee. These companies collectively accounted for thousands of new hires from outside the US between May 2020 and May 2024. 

During that period, Infosys had more than 10,400 workers approved at US consulates, with over 93% of its hires impacted, potentially costing over $1 billion. TCS would have incurred the fee for 6,500 workers, representing 82% of its newly approved hires. Cognizant would have paid the fee for more than 5,600 workers, or 89% of their approvals. 

Effect on Recruitment and Offshoring 

The fee has introduced major changes in how IT companies approach recruitment. Many are now reconsidering H-1B applications requiring consular processing and choosing to expand workforce locations abroad. With India supplying a significant portion of H-1B talent, companies may now boost operations there rather than pay higher visa-related expenses. 

Read More: Trump’s $1 Million Gold Card Visa Goes Live Replacing EB-5 Route! 

Legal Challenges and Industry Reactions 

Several states and business groups have filed challenges against the fee, including the US Chamber of Commerce. Despite ongoing litigation, many firms are already adjusting to the new cost structure by reducing H-1B applications or shifting to offshore delivery models. The updated fee structure has resulted in significantly reduced visa lottery registrations compared to previous years. 

Changes to Visa Lottery Mechanics 

Alongside the new $1,00,000 fee, structural changes to the H-1B lottery system may further discourage mass registrations. The Trump administration claims the higher fee serves to prevent system abuse and support high-skilled, high-wage visa applicants. Observers predict a noticeable decline in low-wage or middle-layer consultancy hires under this regime. 

Conclusion 

Firms like TCS, Infosys, and Cognizant are among those most affected by the substantial fee on new H-1B workers. Coupled with changes in the lottery process, the policy has prompted staffing shifts and legal responses from key stakeholders. 

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