Highlights:
- Trump administration imposes steep new fee on visa applications to discourage foreign hiring.
- Cognizant, TCS, Walmart, and Intuitive Surgical pause visa sponsorships amid high costs and policy uncertainty.
- US Chamber of Commerce sues the government, calling the fee “cost-prohibitive” and harmful to innovation.
- Firms like TCS focus on localizing US workforces, while others explore remote and offshore operations.
- Policy limits opportunities for Indian IT and STEM professionals, with analysts predicting fewer US job openings in 2026.
The policy, which aims to curb alleged misuse of the H-1B system and promote local hiring, has drawn sharp criticism from the business and tech community, who warn it could stifle innovation and limit access to global talent.
The H-1B visa allows US firms to employ foreign professionals in specialized roles across sectors like IT, engineering, and medicine. However, the steep fee has been branded “cost-prohibitive” by the US Chamber of Commerce, which has filed a lawsuit arguing that the rule unfairly burdens employers, especially startups and midsize businesses.
Cognizant, one of the largest US-based employers of Indian professionals, has quietly restricted its job listings to candidates already authorized to work in the country without sponsorship. A company spokesperson said the policy change would have a “limited near-term impact” due to the firm’s global presence but acknowledged ongoing adaptation to evolving immigration rules.
Tata Consultancy Services, among the top global H-1B sponsors, has gone a step further, announcing that it will stop hiring through the program entirely. CEO K. Krithivasan said TCS had already “significantly localized” its US workforce and would continue strengthening operations by hiring more American professionals.
Chief HR Officer Sudeep Kunnumal added that TCS’s flexible business model allows it to adjust quickly to regulatory changes. In California, med-tech firm Intuitive Surgical has temporarily halted H-1B sponsorships due to the “uncertainty” surrounding the new rule. Over 100 listings on its site now include disclaimers stating that offers will not be extended to candidates requiring visa sponsorship.
Similarly, Walmart—employing over 2,400 H-1B holders—has paused its sponsorship programs, stating it remains “committed to hiring the best talent” while reassessing its immigration strategy. Critics argue that the new policy could damage America’s standing as a global innovation hub.
Legal experts have questioned the President’s authority to impose such fees without congressional approval, while educators and tech leaders warn it may exacerbate labor shortages in high-demand fields. For Indian professionals, particularly those in IT and STEM sectors, the changes spell tighter access to US jobs.
With the 2026 H-1B cap already filled—65,000 general and 20,000 advanced degree visas—analysts predict a rise in local hiring, remote work models, and expansion of offshore delivery centers in India and Europe.
