Amid ongoing discussions surrounding H-1B visas in the US, both potential applicants and their employers are preparing for the complex costs associated with securing the highly sought-after work permit, starting in fiscal year 2025.
The H-1B programme allows US-based companies to bring skilled workers from abroad into specific industries, but it comes with significant fees that vary depending on the type of petition and the employer’s status.
As the inauguration of Donald Trump nears, employers and workers are bracing for potential changes under the new US administration that could impact the already contentious H-1B visa program.
According to a report by Newsweek, many US employers are opting to hire remote workers as a way to bypass the H-1B process altogether.
The report notes that employers are seeking alternative visa paths, largely due to the administrative burdens and uncertainties of the current programme.
Kathleen Campbell Walker, partner and immigration practice group chair at law firm Dickinson Wright, told Newsweek, “I only go into H-1B when I have no choice, because it’s costly, uncertain in terms of the lottery, and the most highly regulated option available to present to an employer.”
A 2024 survey from Envoy Global, an employment immigration services provider, revealed that 83% of employers hired one or more employees for roles initially intended to be based in the US from outside the country.
Indian H-1B holders are also considering other options, following advice from their attorneys and employers. The Straits Times reported that many of these visa holders have been instructed to remain in the US in case a rule change under the new administration makes their re-entry more difficult.
The H-1B program has an annual cap of 85,000 visas, yet exceptions push the number of approvals far higher. For example, in 2018-2019, the programme saw approximately 585,000 recipients, though this figure dipped during the pandemic before rising again to 410,000 in 2022 and over 750,000 in 2023, according to the American Immigration Council. However, the programme still does not meet the high demand for foreign talent, and its approval process relies on an opaque lottery system.
The top users of H-1B visas are largely concentrated in the tech, finance and consulting industries.
Declining H-1B approvals
In fiscal year 2024, the top seven Indian IT firms received only 7,299 H-1B visa approvals for new hires, a significant drop from the 14,792 approvals in fiscal year 2015, according to the National Foundation for American Policy (NFAP). This trend highlights a substantial decline in approvals for these companies.
At the individual company level, Amazon led with 3,871 H-1B approvals, down from 4,052 in FY23 and 6,396 in FY22. Other major companies, including Cognizant (2,837 approvals), Infosys (2,504), and Tata Consultancy Services (TCS) (1,452), also saw declines. Other notable companies with H-1B approvals included IBM, Microsoft, HCL America, Google, Capgemini, and Meta Platforms.
New rules coming February 17
The Department of Homeland Security (DHS) is set to implement its H-1B Modernization Final Rule on January 17, aiming to streamline the hiring process for skilled foreign workers while increasing oversight of the programme. This update is intended to better address workforce demands, improve efficiency, and clarify the visa application process for employers.
Starting on the same day the new rule takes effect, employers will be required to use the updated Form I-129 when filing for H-1B workers. A preview of the revised form is available on the U.S. Citizenship and Immigration Services (USCIS) website.
Despite these updates, the H-1B visa program will still be subject to an annual cap, with demand consistently exceeding supply. USCIS will begin accepting cap registrations in March 2025 for fiscal year 2026 applications, maintaining its lottery-based selection process.