H-1B Visa Chaos Forces Businesses to Rethink Strategy

Since September, the H-1B visa program has been caught in a whirlwind of changes. Companies nationwide are scrambling to determine their next steps, rewriting travel guidance for foreign workers, and lining up backup staffing plans, including shifting some work overseas, according to five immigration attorneys.

First came a $100,000 fee on new applications in September. Then came social media vetting requirements that left visa holders stranded abroad during the holidays. Now, a wage-based lottery system will favor the highest-paid applicants by giving them more chances in the annual H-1B lottery. Immigration lawyers say the constant policy shifts have companies tightening sponsorship guidelines, re-budgeting for higher costs, and gaming out contingency plans for a program that keeps changing shape.

The H-1B visa program has undergone significant volatility, prompting a recalibration of business strategies. Donald Trump signed an executive order imposing a $100,000 fee on new visa petitions for workers living abroad. However, this fee does not apply to the vast majority of cases, such as foreign students already in the US switching from an academic visa to a work visa or existing H-1B holders changing employers.

Despite the narrow scope of the fee, the unpredictability is taking a toll. Rohit Srinivasa, an immigration attorney based in Los Angeles, stated, "Unpredictability is one of the number one enemies for business." Ted Chiappari, who leads the immigration practice at a law firm, noted, "One of the main attributes of this administration is that they keep people guessing. Just because things are one way on Monday doesn't mean they're going to be the same way on Tuesday, and they won't switch back to things on Wednesday."

Companies are responding by:

• Rewriting travel guidance for foreign workers
• Updating HR policies regarding social media presence
• Re-budgeting for higher potential costs
• Considering shifting work overseas

Not all industries are reacting the same way. Divij Kishore, an attorney at Flagship Law in New York, reported a 40% to 50% drop in H-1B sponsorship inquiries compared to previous years. "This year, that's not been the case because employers are just not sure what the costs are," Kishore said. Conversely, K. Edward Raleigh, a partner at Fragomen, which represents Silicon Valley giants like Apple and Nvidia, noted that he hasn't seen a material slowdown in filings overall, largely because most are renewals for existing workers.

Universities and nonprofit healthcare organizations have been hit particularly hard. These institutions, which historically recruited professors and medical workers from abroad, have largely stopped filing petitions subject to the fee. "That pipeline is now dried up," Chiappari said.

Meanwhile, data from the National Foundation for American Policy shows a shift in who receives visas. For the first time in the program's history, Amazon, Meta, Microsoft, and Google occupied the top four spots for H-1B approvals in fiscal year 2025, while fewer visas were issued to Indian IT consulting firms.

Companies are not abandoning sponsorship entirely but are exploring alternative pathways. Interest in O-1 visas for workers with "extraordinary ability" has surged. To qualify, applicants typically need to demonstrate a track record of impact evidenced by patents, awards, and media coverage.

Other strategies include:

• E-2 investor visas: Used by founders from countries with US trade treaties.
• EB-1C path: Sending managers abroad for a year before bringing them back to the US.
• L-1 visas: Establishing international offices to transfer employees to the US.

Big Tech and Wall Street firms such as JPMorgan and Goldman Sachs have been expanding operations in Indian cities like Bengaluru and Hyderabad. Kishore added that some clients are preemptively ramping up offshore staffing capacity. "If they can't spend that same hundred dollars within the US next year, they will spend a hundred dollars outside the US," he added.

Starting with the 2026 lottery, visa applications will be weighted based on salary level. Workers offered the highest wages will get four entries in the lottery, while those at the lowest tier get just one. The administration says this will ensure visas are awarded to the most skilled workers.

However, attorneys warn this may disadvantage startups and smaller companies. Sophie Alcorn, a Bay Area immigration attorney, said, "Often the best startup founders forgo being paid a living wage because they're so dedicated to the mission. Those same startups may be the ones that have the most difficulty in getting the right people through this future system."

Kishore noted that a higher salary doesn't always mean more skill, citing the disparity between major law firms and smaller firms. Additionally, the wage-based lottery complicates the prospects for foreign students entering the workforce at lower salaries, turning previous logic "on its head."

Companies are updating compliance strategies to avoid triggering fees. Ensuring workers maintain valid immigration status is critical, as any lapse could force someone to leave the country and return on a new visa, potentially triggering the fee. Some companies are advising employees to avoid international travel entirely, even when permitted.

The human cost is evident. Chiappari mentioned that despite written assurances, many H-1B holders are refusing to travel due to fear. "They're just not traveling," he said. This has led to postponed weddings, skipped vacations, and delayed work travel. As Srinivasa believes the program is "so baked in" to the US economy, it is undergoing overhaul rather than replacement, leaving businesses to navigate the ongoing turbulence.