President Donald Trump announced that, under his administration, a $100,000 fee will be imposed on new H-1 B visa petitions. On September 21, 2025, the new fee took effect and has had a significant impact on employers’ ability to hire highly qualified foreign workers who come to the United States on H-1B visas. Under the H-1B visa policy 2025, employers will be required to pay a one-time fee of $100,000 for a new petition. Earlier, the visa fee ranged between $2,000 and $5,000 per petition.
2025 H-1B Visa Changes: What You Need to Know
The H-1B visa allows U.S. employers to temporarily hire foreign workers in specialty occupations that demand theoretical or practical application of either specialized knowledge and a bachelor’s degree or its equivalent.
Since 1990, the H-1B visa has been a prime pathway for many USA companies to hire skilled foreign professionals, especially in the technology and IT sectors. Due to the 2025 policy changes, which include the introduction of $100,000 fee, along with stricter eligibility criteria, businesses may face longer processing times and other unavoidable scenarios.
Although these adjustments are created to prioritize hiring of domestic workers, it’s worth acknowledging that the majority of U.S. companies depend on foreign talent.
For U.S. businesses or startups, the visa shift may result in higher costs, delays in approvals, and increased administrative requirements. Startups or enterprises that rely on foreign talent may need to reassess their hiring strategies, as hiring experts via the H-1B process can become more challenging and expensive.
Stay updated about these recent changes if you are running a business or an HR team. Understanding the new H-1B visa updates allows companies to plan and execute hiring strategies effectively.
Impact of the $100,000 H-1B Fee on USA Businesses
The recent drastic changes to new H-1B petitions filed from abroad are prompting U.S. IT companies to rethink their hiring strategies. Businesses are struggling with longer processing times, higher costs, and evolving requirements to hire skilled foreign talent.
1. Increased Hiring Costs
Undoubtedly, the introduction of $100,000 H-1B fee has raised the cost of hiring skilled foreign professionals, forcing companies to look for cost-effective solutions such as onshore hiring. Before the fee increase, the total cost for an H-1B application ranged between $2,000 and $5,000. The new cost is challenging for many companies; for instance, major firms such as Tata Consultancy Services (TCS) have announced a reduction in their reliance on H-1B visas, choosing to hire more locally, to decrease financial burden.
2. Pressure on SMBs and Startups
USA small businesses and startups depend on H-1B workers, but this new change in the visa processing has caused stress. Many are now considering onshoring IT services to maintain access to experts.
3. Technology Sector Challenges
The IT sector faces a slower hiring process now more than before; leveraging onshoring benefits, such as faster onboarding, is a preferred option.
4. Legal and Compliance Considerations
Navigating the H-1B program with the new fee comes with legal and administrative challenges. Many agencies are shifting to US-based talent solutions to ensure complete compliance while accessing a reliable talent pool.
Industries Most Affected by the 2025 H-1B Visa Changes
Updates to the H-1B visa for 2025, such as the $100,000 H-1B fee and more stringent eligibility requirements, are anticipated to have an effect on a number of important U.S. companies that significantly depend on highly qualified foreign workers. Companies in a variety of industries are reassessing their employment practices in order to adjust to the changing environment.
-
Consulting Services
Consulting firms frequently rely on H-1B employees for specialized experts in technology, management, and business procedures. In order to preserve project execution and customer satisfaction, businesses may be forced to think about onshore workforce solutions due to the tighter regulations and higher visa fees.
-
Financial Services
Skilled foreign workers are frequently hired by banks, financial firms, and insurance businesses for positions in technology, analytics, and compliance. Companies may decide to increase their reliance on domestic talent pools and fortify their onshore hiring practices as a result of the potential slowdown in the recruitment of international talent caused by the changes in H-1B regulations.
-
Healthcare and Pharmaceuticals
The majority of USA research labs, pharmaceuticals, and hospitals rely on foreign talent for potent roles, such as patient care, drug development, etc. With the H-1B visa policy change, organizations are now hiring U.S.-based talent solutions to ensure continuity in these sectors. The U.S. is projected to face a shortage of almost 187,000 doctors by the end of 2037. The new rule is a major cause factor to further deterioration of the entire USA healthcare system.
-
Information Technology (IT)
Since the IT sector has traditionally relied on foreign expertise for positions in software development, cloud computing, and cybersecurity, it has been the sector most impacted by the changes to the H-1B visa. Hiring expenses have undoubtedly increased as a result of the fee increase, particularly for startups and medium-sized software companies. IT service providers such as Tata Consultancy Services (TCS) and Infosys are reducing dependence on overseas hires, focusing on onshoring IT services and local workforce expansion. This trend has encouraged U.S. companies to strengthen their domestic tech talent pipeline, ensuring faster onboarding, better compliance, and lower administrative overheads.
Onshoring: A Strategic Response
As H-1B visa costs and restrictions are rising, onshoring is becoming a strategic and smart alternative. It enables businesses to acquire skilled local talent while maintaining compliance and efficiency. Onshoring helps companies to:
- Strengthen workforce stability
- Ensure regulatory compliance
- Enhance collaboration and communication
- Drive innovation within domestic teams
Why Onshoring with CodKnox is a Smart Move
As the 2025 H-1B visa shift reshapes the hiring process, onshoring has become a strategic move and a competitive advantage for U.S. businesses. Partnering with CodKnox allows companies to get access to skilled tech talent locally – without the high costs, delays, or compliance challenges of international hiring. Here are a few of the reasons why CodKnox makes business sense:
1. Cost Efficiency
With the $100,000 H-1B filing fee, hiring professionals from another country has become expensive. CodKnox, a professional development company, helps businesses to avoid these costs by offering expert onshore hiring solutions within the U.S. This smart approach helps enterprises to optimize budget, maintain the project momentum, and also, at the same time, invest resources where they matter the most!
2. Seamless Collaboration
Offshore companies struggle with time zone differences a great deal; onshoring with CodKnox makes sure that real-time communication and rapid project delivery. Working with the USA-based professionals fosters better team alignment, a fast feedback loop, and improved overall productivity.
3. Scalable Talent Solutions
We offer access to a diverse, pre-vetted onshore developers who are seasoned experts in software development, UI/UX, data analytics, and project management. Companies can scale teams up or down with ease, entirely dependent on project size and duration, without worrying about visa limits or hectic hiring cycles.
4. Compliance and Risk Reduction
Navigating immigration laws and visa processes can be time-consuming and complicated. At CodKnox, we try to eliminate that burden by enabling compliant onshore workforce management. With full support, companies can focus on performance and innovation, knowing the legal and administrative aspects are managed within U.S. regulations.
Final Thoughts
The 2025 H-1B visa policy has transformed how U.S. businesses approach talent acquisition. With the rising costs and compliance requirements, moving towards onshore hiring seems like a smart choice and is essential. Joining hands with an onshore software development company like CodKnox empowers organizations to access top-tier U.S. talent, maintain agility, and streamline operations. Onshore will offer stability, scalability, and strategic growth opportunities for companies aiming to stay competitive while fostering innovation locally.
Frequently Asked Questions (FAQs)
Q1. How much does an H-1B visa cost?
The H-1B visa cost for new petitions filed from abroad is $100,000, in addition to standard filing fees.
Q2. Who is eligible for an H-1B visa?
To be eligible for an H-1B visa, an individual must have a valid job offer in the United States for a specialty occupation, which requires theoretical and practical application of a body of highly specialized knowledge.
Q3. How does onshoring help with the new H-1B visa challenges?
Onshoring helps with the new H-1B visa challenges in the following ways;
- Access to skilled local talent
- Reduces hiring costs
- Ensures compliance with U.S. labor and employment laws
- Maintains productivity and project timelines with faster onboarding
- Minimizes administrative burden compared to international recruitment processes
Q4. Which industries benefit most from onshoring?
Industries such as Information Technology, finance, consulting, and healthcare benefit the most, gaining access to skilled talent, ensuring compliance, and reducing reliance on foreign hires.
