After US President Donald Trump enhanced the application fee for H-1B visas to $1,00,000, many American firms have started advertising technical jobs exclusively for US citizens.
Roles such as software developers, process engineers, project managers, and UI/UX designers, once largely filled by H-1B visa holders, are now being listed with a clear note: “Open to US citizens only.” Industry experts said that the new fee has made hiring foreign talent “financially unviable” for most companies, especially small and mid-sized ones.
The move, which came into effect last month, is imposed on companies hiring new H-1B applicants. The $1,00,000-fee caused widespread concern among international workers, especially those from India who form a majority of H-1B applicants and depend on the H-1B programme to work in America’s technology sector.
Recruiters report that companies are quietly shifting their hiring focus toward domestic candidates to avoid the steep cost.
Speaking with Deccan Chronicle, Rebeca Pardo, a hiring assistant for a tech firm in San Francisco, said “Our budgets cannot handle a $1,00,000 fee for every new hire. Thus we’re told to prioritise US citizens only.”
“It is not about discrimination. It’s solely about the cost for companies. Multinational companies and major corporations could hire a few H-1B applicants as they have a lot of budget, but medium to small-faring companies cannot sustain with such a heavy fee,” Rebeca added.
Graduates studying in the US, who are now on Optional Practical Training (OPT) are unsure of their future. Rohith Reddy, a Hyderabad-based computer science graduate in Texas, said, “I’m currently working with a company on OPT, and I have another year left in it. They looked a bit hopeful about giving a H-1B to me before, but after the order, they straight up said they can’t hire me after my OPT ends.”
While critics argue that the $1,00,000 fee pushes companies to hire local talent, others warn about losing skilled talent, missing out on boosting America’s economy and widening the tech skills gap over the long term.