The Trump administration has taken a surprising step back after last month’s controversial H-1B visa announcement. The US Citizenship and Immigration Services (USCIS) has now eased its stance following massive pushback from Big Tech and labour groups.
USCIS Softens $100,000 Fee Impact
The $100,000 H-1B filing fee, announced on September 19, was meant to curb new visa hirings. It triggered widespread panic across the tech industry, with immigration lawyers and companies warning that the move could hurt innovation and global competitiveness.
Legal Challenges Force a Policy Shift
Two major lawsuits followed—one from unions, healthcare providers, and NGOs, and another from the US Chamber of Commerce. Facing legal pressure, USCIS issued a fresh update protecting extensions, internal transfers, and status changes from visas like F-1 or L-1 to H-1B.
L-1 Visas Now the Bridge for Tech Firms
The L-1 visa allows multinational companies to move senior or specialised employees to the US. Many tech firms now plan to use this as a bridge, bringing in workers under L-1 and later converting them to H-1B without paying the new fee.
Strategic Move to Calm Tech Industry
Excluding L-1 transfers from the fee appears to be a calculated step. It offers Big Tech a way out while silencing some of the strongest corporate voices opposing the rule. For US-based tech giants, this update provides a much-needed relief.
Indian IT Firms Take the Biggest Hit
However, new H-1B applicants from outside the US must still pay the steep fee. Indian IT firms such as Wipro, Infosys, TCS, Cognizant, and HCL are expected to bear the brunt, as most of their hires come directly from India.
Uneven Relief Across Tech Sectors
Meanwhile, American firms like Meta, Apple, Amazon, Netflix, and Google benefit since they rely more on US graduates and intracompany transfers. Smaller tech firms, though, remain under heavy strain due to higher costs and hiring restrictions.
Uncertain Future for Indian Freshers
While the update gives relief to existing H-1B holders and US-based workers, it leaves Indian freshers at a disadvantage. Direct H-1B sponsorships from India are likely to decline further, reshaping the future of global tech recruitment.
