H-1B Visas Rule Changes Under Trump in 2025

Trump signed an order (Sep. 19, 2025) that makes companies pay $100,000 for each H-1B visa they use to hire foreign workers. If your employer doesn't pay the $100,000, you can't come in. The State Department and Homeland Security will turn you away. Indians get more than 70% of H-1B visas, Chinese citizens get 10%, and the rest go to experts from Mexico, Canada, Philippines, Taiwan, and Korea. Trump's decisions create uncertainty in business. This supply shock isn't good for the US. However, tech companies agree that America's loss could be Canada's and Europe's outsourcing industry gain.

What Are H-1B Visas?

Congress created H-1B visas in 1990 to let US companies hire foreign workers with specialized skills.

The visa lasts three years and can be extended once for another three years. Six years total maximum. Employers pay about $5,000 in fees per worker. The visa doesn't lead to a green card automatically - that's a separate process.

Tech companies, hospitals, engineering firms, banks, and universities use H-1B visas most. Companies must prove they couldn't find qualified Americans for the job before hiring someone on an H-1B visa.

Each year, the government approves 65,000 H-1B visas through a lottery system. They approve an additional 20,000 for people who earned master's degrees or PhDs from US universities. That's 85,000 total. If you get approved, you can bring your spouse and unmarried children under 21.

This year, over 470,000 people applied. Many companies submit multiple applications for the same person to boost their odds in the lottery.

Even if you're perfectly qualified, you may lose the lottery. If you win, processing takes two to eight months. You can pay extra to speed it up.

Amazon hired the most H-1B workers last year. Tata, Microsoft, Meta, Apple, and Google were next.

About half a million people work in the US on H-1B visas. They renew every three years.

Famous H-1B visa holders include Melania Trump, who came in 1996 and became a citizen.

Who the H‑1B Visa Rule Changes Affect

An official website of the U.S. Department of Homeland Security says that if you have an approved petition filed before 12:01 a.m. ET on September 21, 2025, or already hold a valid H‑1B visa, you’re safe.

The White House confirmed Saturday it doesn't affect current visa holders. Press Secretary Karoline Leavitt said the $100,000 applies "only to new visas, not renewals, and not current visa holders." Current H-1B holders can leave and return to the US normally.

Companies Are Trying To Adapt to H-1B Visas Rule Changes

Right after Trump signed it Friday, Microsoft, Amazon, and JPMorgan told their H-1B workers who were traveling to return to the US before the Sunday deadline.

The Trump administration tried to clear things up Saturday, saying the fee only applies to new applicants. But executives, lawyers, and HR departments played it safe this weekend. Many told workers to return immediately. Everyone watched White House social media for updates.

Microsoft told its 5,200 H-1B employees Friday evening to stay in the US "for the foreseeable future," even if it disrupts travel plans. "The critical thing is to stay in the U.S. to avoid being denied re-entry."

H-1B Visas Rule Changes Affects Technology Industry

Amazon hired the largest number of workers with H-1B visas: more than 14,000 by the end of June. Microsoft, Meta, Apple, and Google each had more than 4,000 such visas, making them among the top ten largest H-1B recipients in fiscal year 2025.

The IT industry gets 60% of its revenue from the US. Indian IT companies like Tata and Infosys supply many contractors to American banks. These vendors will send fewer employees to US client sites and do more work offshore in India, Mexico, and the Philippines.

On Monday, shares of Indian IT giants Infosys and Tata Consultancy Services fell approximately 3 percent in response to the news.

H-1B visas help tech companies fill jobs. Now they're at the center of a huge immigration debate.

Startups will struggle most. Many operate for years without making money.

Only the biggest companies can pay these fees. Smaller firms can't compete.

Adam Kovacevich from Chamber of Progress said: "There's limited AI talent, and some is foreign-born."

H-1B Visas Rule Changes Affects Finance Industry

Banks are among the biggest H-1B sponsors. They need data scientists, quantitative engineers, and cybersecurity specialists - many are foreign-born. These roles drive the industry's digital transformation.

Immigration lawyers expect banks to save visas only for the most critical roles. Banks competing in AI, payments, and digital assets may slow innovation.

Banks already expanded operations in India and Latin America - hubs for data analytics, AI, and risk modeling. This change will speed that up. Banks will also compete harder for the limited pool of US citizens and green card holders in tech, driving up costs.

H-1B Visas Rule Changes Affects Education Industry

Universities would pay $100,000 to hire new professors or researchers from outside the country if they haven't filed petitions yet. The fee, plus other costs, basically stops most employers from hiring H-1B workers from abroad.

H-1B Visas Rule Changes Affects India Companies

This deepens already strained India-US relations.

Relations have gotten tense lately. Trump imposed 50% tariffs on Indian goods, penalties on India's Russian oil imports, and threats of 100% tariffs on all BRICS members.

Indian outsourcers who send engineers to US client sites will see their profits shrink. India's $280 billion IT services sector already struggles with slow growth as customers cut tech spending.

Companies like Tata, Infosys, and HCL Tech have reduced their H-1B dependence since Trump's first term. They hired more Americans and opened US delivery centers. Infosys employs thousands across delivery centers in Texas, Indiana, and North Carolina. The pandemic also made remote work normal.

But H-1B visas remain important. They maintain client relationships in India's biggest market and let engineers work on-site for sensitive US projects. Higher costs mean fewer workers at client sites.

H-1B Visas Rule Changes Benefits Canada and Europe

America's loss could be Canada's gain. This could help Canada become the preferred destination for international talent.

European tech companies agree. They see this as a huge opportunity for European tech. Making Europe more attractive to skilled workers helps them attract talent worldwide and strengthens the continent as an innovation hub.

Criticism of H‑1B Visa Rule Changes

Research by Wharton professor Britta Glennon shows H-1B restrictions push jobs overseas: "Policies aimed at reducing immigration have the unintended consequence of encouraging firms to offshore jobs abroad."

Trump wants to protect US jobs, but this could backfire. American companies will pay more and expand their global capability centers in India faster. Microsoft, Google, Goldman Sachs, JPMorgan, and Morgan Stanley already run large centers there.

If companies can't outsource onshore, they'll expand offshore or nearshore.

Y Combinator CEO Garry Tan called Trump's decision a mistake that "hurts startups" and is a "huge gift to foreign tech centers".

The American Immigration Lawyers Association plans to file a legal challenge seeking a temporary restraining order this weekend.

What's Next

Trump opposed H-1B visas since his first administration. Now, White House officials say the $100,000 restriction order helps companies prioritize hiring Americans.

Immigration hardliners say the visa program hurts Americans because companies hire foreigners for less money.

Critics argue that IT staffing firms bring in workers with salaries lower than what companies would have to pay American employees, gaming the system and taking away jobs that would otherwise go to Americans.

The current minimum annual salary that companies must pay H-1B visa recipients is $60,000 while critics argue that an American tech worker would receive $100,000 or more for the same job. By the way, nearshore outsourcing in Eastern Europe can cost even less than $60,000 for the same talent.

Trump officials will likely continue dismantling the immigrant talent pipeline. They plan to make it harder for international students to get H-1B status. This includes requiring fixed periods for student visas, cutting Optional Practical Training and STEM OPT programs, creating a new H-1B selection process that disadvantages international students, and adding more restrictions for companies.

Berenberg (German investment bank) recently lowered its United States economic growth forecast from 2 percent at the beginning of the year to 1.5 percent. However, economists warn that even the 1.5 percent forecast may soon seem optimistic.

Originally published here