What You Need to Know About the Latest H1B Visa Updates

On September 19, 2025, President Donald J. Trump signed a Proclamation titled “Restriction on Entry of Certain Nonimmigrant Workers,” introducing changes to the H-1B visa program. The update imposes a $100,000 fee on every new H-1B petition and replaces the old lottery with a wage-based selection system.

The White House has framed the move as part of its broader effort to prioritize American workers, but industry observers warn that the policy could reshape how U.S. enterprises approach IT staffing and global workforce strategies.

Key Implications of the New H-1B Visa Rules

The Department of Homeland Security (DHS), State Department, and Customs and Border Protection (CBP) have clarified that while existing visas remain valid, new applications face significant hurdles. For enterprises, the policy results in three immediate challenges:

• Substantially higher petition costs – The introduction of a $100,000 filing fee represents a sharp increase compared to the previous structure, where fees typically ranged between $1,700 and $6,500.
• Shift in candidate selection dynamics – The proposed wage-based selection system gives stronger priority to higher salary levels, according to DHS filings in the Federal Register.
• Uncertain processing timelines – Because the proclamation introduces new compliance steps and requires coordination across multiple agencies, employers may face longer or less predictable recruitment timelines.

How The Decision Can Impact In-house Hiring

Even prior to the 2025 visa policy changes, U.S. enterprises faced high costs in securing IT talent. Median software developer salaries already exceeded $133,080, and benefits often added another 30–40% to compensation packages. Recruitment expenses for technical roles could run into the tens of thousands of dollars per hire. Together, these factors made domestic IT hiring a costly undertaking.

• High salaries and benefits – Hiring U.S.-based IT talent usually requires employers to account not only for market-driven salaries but also for substantial benefits, insurance, compliance costs, and performance-linked bonuses.
• Recruitment and training delays – Locating qualified candidates, navigating complex visa procedures, and onboarding new hires can take several months, delaying project timelines.
• Attrition risks – With H-1B visas typically valid for three years and renewals facing uncertainty, companies run the risk of losing talent mid-project, creating disruption and additional costs.

When combined with the $100,000 petition fee, the cost of hiring a single mid-tier developer could now exceed the expense of contracting a fully staffed outsourced development team.

Adjusting Enterprise Workforce Strategies

According to Business Insider, companies such as Amazon, Google, Microsoft, and major IT services providers, including Infosys, Tata Consultancy Services, and Cognizant — historically among the largest H-1B sponsors could see their staffing models significantly affected by the new rules.

Industry analysts note that enterprises are evaluating several options to manage the changes. Some are expected to expand domestic hiring and training programs, while others may accelerate nearshoring to Canada and Latin America or increase reliance on offshore delivery centers, echoing approaches that gained traction during the pandemic’s remote-work era.

Research by TD Cowen suggests these strategies could reshape how global IT projects are executed.

Outsourcing, already a cornerstone of the global technology services market, is also expected to play a greater role. Analysts highlight that external providers can help companies control costs, scale teams up or down more flexibly, and shorten deployment timelines, which makes outsourcing a practical option in an environment of higher visa fees and stricter selection rules.

A Turning Point for IT Workforce Strategies

With new H-1B petitions now significantly more expensive and complex, many companies that previously depended on foreign mid-tier IT talent are expected to reconsider their workforce models.

As governments continue to debate immigration and labor policies, businesses are unlikely to pause operations. With rising petition costs and stricter selection rules creating uncertainty, many enterprises are reassessing their workforce models. In this environment, partnering with a reputable outsourcing provider offers a way to maintain access to skilled talent, reduce the risk of project delays, and ensure continuity in IT and development planning.