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

Businesses in the USA are under tremendous pressure to innovate, develop, and complete projects effectively in the fast-paced digital world of today. Skill shortages, protracted hiring cycles, high expenses, and trouble rapidly scaling resources are some of the difficulties that come with hiring full-time IT teams. By providing businesses with on-demand access to qualified IT specialists, IT staff augmentation services in the USA offer a workable alternative. Through the application of this process, organizations can leverage expertise and promote faster project delivery. Agencies can also acquire officials in key roles more easily and quickly, and scale their teams efficiently with in-house staff. Many US businesses depend on trusted staff augmentation companies in the USA. With the assistance of these companies, organizations can connect with vetted IT professionals, streamline the hiring process, and work on strategic solutions to stay ahead in 2025-2026. What Is IT Staff Augmentation? IT staff augmentation is a flexible hiring solution that allows businesses to bring on board skilled professionals on a temporary or project-based basis. Unlike outsourcing, in which an external team manages an entire project, staff augmentation integrates talent into your in-house team. Businesses often partner with an IT staff augmentation provider in the USA to quickly access specialists for short-term, long-term, on-demand, or project-based needs. Types of Staff Augmentation Models Remote Staff Augmentation In this particular model, developers work remotely and communicate online every day to collaborate with your in-house employees. The location can be within the same region or another country; it does not matter. If you want to hire remote software developers in the USA, then this method is highly cost-effective and is beneficial for both the employer and the employee. Offshore Staff Augmentation The opposite of the traditional model, under this category, employees belong to another country and participate in work from home. Onshore Staff Augmentation The onshore staff augmentation model is quite similar to the traditional model, as in this case scenario, the experts belong to neighboring countries as well. You get access to a wider talent pool. For example, top staff augmentation companies can hire external employees from Mexico or Latin American countries. Resource Augmentation Resource augmentation services are a combination of staff augmentation and other resources. It is a model developed to help businesses of all sizes bridge the resource gap in their organizations. The prime resources offered by the service provider include infrastructure, talent, technology, etc. Temporary Staff Augmentation As the name suggests, temporary staff augmentation services are utilized for short-term requirements. It is an advantageous model to address any immediate concerns. Project-based Staff Augmentation This model involves hiring skilled experts for the entire project. As complex projects require more resources and diverse talent, this method comes in handy. If you are looking to hire project-based developers in the USA, expect extra costs or, in some scenarios delay of the project. Benefits of Staff Augmentation for the USA Businesses Scalability and Flexibility A flexible IT staffing model USA permits businesses to change their team capacity based on project requirements. This concludes that companies can either add or decrease professionals in their team as per the project requirements. Access to Skilled Talent With the help of software development staff augmentation, businesses can vet developers for emerging technologies like artificial intelligence, cybersecurity, etc. This ensures that gaps are filled with the right set of skills. Cost Efficiency Another major benefit of hiring a dedicated development team USA is that companies save on costs, such as training, management, which helps allocate the budget more easily. Faster Time-to-Market Bringing in extra resources helps agencies launch products faster and meet market demands, and at the same time, stay ahead of competitors. Businesses can take guidance from the software development team to deliver their projects before the deadline nd save them the trouble. Reduced Risk When you work with the IT staff model USA, expect reduced project risks as professionals now work alongside your team. The resources hold knowledge and years of experience that help with high-pressure situations and ensure your project runs smoothly without any errors. Why CodKnox Is the Top Choice for IT Staff Augmentation in the USA CodKnox stands out when it comes to hiring IT workers in the USA because of its track record of success, dependable delivery, and capacity to supply top-tier IT talent that precisely matches your company’s objectives. Through adaptable engagement methods, we assist businesses in overcoming skill shortages, scaling their teams with ease, and achieving quicker project outcomes. With years of experience, CodKnox is a reliable technology partner that helps companies in the USA create IT teams that work well. We make it easy and affordable to scale your IT resources using a flexible engagement model. Key Services At CodKnox, we offer a full range of IT staff augmentation services designed to meet modern business needs, including: On-demand IT staffing Project-based IT teams Specialized talent Frontend, Backend, UI/UX, and QA services Team Extension Specialized Expertise Our process guarantees that you get dependable experts who contribute from day one, helping your business stay ahead in a competitive market. Our strengths and competitive advantages include: Transparent pricing and a flexible engagement model that suits your business goals. Highly vetted IT professionals with proven technical and communication skills; Seamless integration with your in-house teams and workflows; and Quick ramp-up times to get projects running without delay. Why Collaborate with Us? CodKnox helps companies in the USA increase their IT capabilities effectively, lower hiring risks, and use highly qualified individuals to expedite project execution. CodKnox guarantees quality, flexibility, and performance at every stage, whether you require a single developer or a whole remote team. We can be your reliable and trusted IT staff augmentation partner in the USA. For more details, get in touch with our team. Frequently Asked Questions (FAQs) Q1. What is the difference between staff augmentation and outsourcing? In staff augmentation, professionals work directly with a business’s internal team and follow their process. On the other hand, outsourcing transfers the entire project to a third-party