Which firms have halted H-1B Visa sponsorship amid new $100k fee policy?

US President Donald Trump's new H-1B visa policy requires a $100,000 fee for new applicants, prompting major companies to stop sponsorships.

Many of America's leading companies have stopped sponsoring H-1B visas for specific positions. The move follows the administration of President Donald Trump's announcement that sponsors would have to shell out a $100,000 fee for new applications.

In response to Trump's $100,000 fee for new H-1B visa applications, several major companies have stopped or reduced sponsorship. (Representational image/Pexels)

The administration's announcement of the H-1B visa reform aims to keep recruiting the top talent while simultaneously making sure the system isn't being misused to import cheap labor and lower salaries for American workers.

However, some have opposed the measure and filed legal challenges, questioning the POTUS' right to implement the tax and voicing reservations that it could undermine America's technological innovation prowess.

US to start charging $100,000 for H-1B visas

The Chamber of Commerce, a business-oriented lobbying group, initiated a lawsuit this month, stating that the fee was “cost-prohibitive for US employers, especially start-ups and small and midsize businesses.”

In September, Trump declared that the US will start charging $100,000 for H-1B visas, which let American companies temporarily recruit foreign workers in specific professions.

The administration later made it clear that the additional price would only be applied to new applicants—not to renewals or current holders.

In addition, the US Citizenship and Immigration Services (USCIS) stated that the fee would only be included in visa applications for foreign workers who were filed on or after September 21.

Furthermore, anybody switching from one type of visa to another—for example, from an F-1 student visa to an H-1B—will not be charged.

Which firms are no longer providing H-1B Visa sponsorship?

Despite the additional fee, certain significant companies have stated that they will keep using the visa program. Earlier this month, Nvidia CEO Jensen Huang stated in an email to employees that the firm would “continue to sponsor H-1B applicants and cover all associated fees,” Business Insider reported.

Nonetheless, several businesses have already said that they will stop sponsoring the visas or reduce the number of hiring that rely on sponsorship.

Cognizant

The Indian-founded IT consultancy firm with its headquarters in New Jersey has not commented on the H-1B program's modifications.

On October 14, Cognizant placed a job posting for a software engineering position in South Carolina, but stated that it would “only consider applicants for this position who are legally authorized to work in the United States without the need of employer sponsorship.”

According to a firm spokesman who spoke to Newsweek, Trump's declaration "is expected to have limited near-term impact on our operations." They continued: “Cognizant’s scale and global footprint provide multiple levers to continue to serve our clients in the U.S. and globally.”

Intuitive Surgical

Business Insider revealed in late September that Intuitive Surgical, a California-based medical technology company, has ceased sponsoring candidates who needed an H-1B visa. This decision was based on notices that were posted to over 100 job postings on the company's website, which covered a variety of positions.

The listings further stated that they are temporarily suspending offers to individuals who need sponsorship for an H-1B visa due to the uncertainties created by the US executive decree.

Tata Consultancy Services

Tata Consultancy Services, one of the biggest sponsors of H-1B visas, has announced that it will no longer be using the program to hire new employees.

K. Krithivasan, the CEO, told the Deccan Chronicle and The Times of India that the firm already had enough H-1B workers in the US and would now concentrate on employing local talent, as per Newsweek.

Walmart

Walmart has stopped employing applicants who need the visas, despite having an estimated 2,400 H-1B holders working for the company, reported Bloomberg, citing unnamed people with knowledge of the situation. The BBC also received confirmation from the company.

According to a Walmart representative, the company is still "committed to hiring and investing in the best talent to serve our customers, while remaining thoughtful about our H-1B hiring approach."