The demand for H-1B visas has significantly decreased among major users of the program. This decline follows the Trump administration’s implementation of a $100,000 fee for certain new foreign workers. As a result, many leading IT companies have either reduced their participation or completely withdrawn from the annual visa lottery.
H-1B lottery entries dropped by 85% to 100% at companies most affected by the fee imposed on workers entering the US from abroad, according to data from the US Department of Homeland Security. Infosys cut its lottery entries by more than 8,100 this year, a 91% fall from the previous year, while Tata Consultancy Services reduced entries by more than 5,600, or 95%. Cognizant Technology Solutions, which had submitted 3,752 entries the previous year, did not enter the lottery this year. IBM also reduced its entries by more than 2,700, almost eliminating its previous-year volume, according to the DHS data. A proposed $103,265 fee would apply to some H-1B workers who were exempt from the earlier $100,000 charge, including recent US college graduates. The administration has said the proposed fee is intended to help cover about $8.7 billion in immigration-related costs identified by DHS across federal agencies. US employers have traditionally sought far more workers than the annual cap of 85,000 visas. An analysis by the Institute for Progress estimated that the proposed charge could reduce H-1B demand by between 63% and 91%, depending on how employers respond.
But analysts said the latest fee could change that equation. The decline was particularly steep among major IT staffing and consulting companies. The sharp drop comes as the Trump administration considers an even broader six-figure charge. However, immigration policy experts and economists cited by Bloomberg Law have questioned whether employers would continue seeking H-1B workers at the same level if the fee becomes mandatory. The H-1B program is already heavily oversubscribed. Most of its models also projected that demand could fall below the annual visa cap. The decline in H-1B applications comes as major technology and staffing companies face increased scrutiny from the Trump administration over their use of foreign workers. The Department of Labor’s inspector general has been investigating alleged fraud and other employment practices involving H-1B and permanent labor certification programs.
Cognizant Faces Scrutiny Amid H-1B Program Changes
Cognizant, a major participant in the H-1B visa program, is under investigation by the Labor Department, which has led to the suspension of the company’s PERM filings. These filings are essential for the employment-based green card process and the investigation centers around allegations of fraud.
In related developments, a proposed fee of $103,265 for H-1B visa applications is currently in the regulatory process, with the public comment period closing on September 24. If implemented, this fee could significantly impact the financial viability of sponsoring foreign workers, potentially leading employers to reassess their participation in the program that has historically seen high demand.
