1B fee shock: Trump’s $100,000 fee crushes visa demand at major IT firms as new six figure charge adds pressure
H-1B visa demand fell 85-100% at major IT firms due to a $100,000 fee. Infosys, Tata, and IBM cut entries significantly. Cognizant did not enter the lottery. A proposed $103,265 fee could further reduce demand, per DHS data and analysts.
How this was made
The 30-second read
Why it matters
The fee dramatically reduces H‑1B lottery participation among major IT firms, signaling tighter labor supply for U.S. tech projects.
Market read
Regulatory fee change creates immediate headwinds for U.S. IT staffing firms, potentially affecting earnings and stock performance.
What to watch
Potential for increased off‑shoring to other countries not subject to the fee.
Background
The Trump administration introduced a $100,000 fee for certain H‑1B visas, with a proposed increase to $103,265.
Ticker impact
Infosys cut its H‑1B lottery entries by over 8,100, a 91% drop after the $100,000 fee.
Potential short‑term downside as hiring costs rise.
Reduced visa entries limit ability to staff U.S. contracts, affecting earnings outlook.
Cognizant did not enter the H‑1B lottery this year after the fee was imposed.
Possible short‑term weakness as staffing constraints emerge.
Reduced ability to hire foreign workers may affect project delivery and revenue.
IBM cut its H‑1B entries by more than 2,700, nearly eliminating its prior volume.
Potential modest downside if hiring constraints persist.
Limited visa access may hinder staffing for large U.S. contracts.
Market effects
IT staffing and consulting firms may see reduced U.S. growth prospects.
U.S. tech services market could face hiring bottlenecks.
The fee may shift offshore staffing dynamics worldwide.
Counterpoint
Companies may pivot to domestic hiring or automation, mitigating impact.
Key entities
- CompanyInfosys
Indian IT services firm listed on NYSE as INFY.
- CompanyTata Consultancy Services
Indian IT services firm listed on NYSE as TCS.
- CompanyCognizant Technology Solutions
U.S. IT services firm listed as CTSH.
- CompanyIBM
U.S. technology and consulting giant.
