Global IT services giants Cognizant Technology Solutions and Infosys are expected to be among the hardest hit by the Trump administration’s newly imposed $100,000 fee on H-1B worker visas, according to a Bloomberg analysis published Monday. The unprecedented levy, which took effect for all H-1B petitions filed on or after September 21, 2025, marks one of the most aggressive policy shifts yet targeting the use of foreign skilled labor in the United States.
The fee was introduced through a White House proclamation signed by U.S. President Donald Trump, framing the move as an effort to curb what the administration describes as systemic overuse—and misuse—of the H-1B program by large information technology outsourcing firms.
“Information technology firms in particular have prominently manipulated the H-1B system, significantly harming American workers in computer-related fields,” the proclamation stated, pointing to a dramatic rise in IT representation within the visa program over the past two decades.
IT Firms Dominate H-1B Usage
According to the Bloomberg analysis, nearly 90 percent of new hires at Cognizant and Infosys between May 2020 and May 2024 were brought on through the H-1B process, underscoring the scale of exposure these firms face under the new fee structure. Other companies with heavy reliance on H-1B visas during that period included IBM, Accenture, and Wipro.
While major U.S. tech companies such as Microsoft, Apple, Google, and Meta also use the H-1B program, the report noted that their dependence is far lower compared to IT services and outsourcing firms, which often deploy large numbers of foreign professionals on client projects across the U.S.
The administration’s data highlights a structural shift in the visa program itself. The share of IT workers in the H-1B pool has grown from 32 percent in fiscal year 2003 to more than 65 percent on average over the last five fiscal years, fueling political scrutiny and policy backlash.
Who Pays—and Who Doesn’t
Under the new rules, the $100,000 fee applies primarily to foreign workers entering the U.S. through consular processing—that is, applicants approved abroad who then travel to the United States. Workers already in the U.S. who qualify for an Adjustment of Status are exempt, creating a sharp cost divide within the same hiring pipeline.
For years, H-1B employers benefited from an online lottery system that required only a nominal registration fee, followed by a relatively straightforward petition process if selected. Combined regulatory and statutory fees typically ranged from $960 to $7,595—a fraction of the new charge. Officials from both the Biden and Trump administrations have argued that this low barrier contributed to a surge in registrations and distorted hiring incentives.
Companies Pivot as Costs Rise
Anticipating tighter immigration rules, some IT firms have already begun recalibrating their workforce strategies. Infosys Chief Financial Officer Jayesh Sanghrajka, speaking during the company’s October 16 earnings call, emphasized that the firm has been actively reducing its reliance on U.S. work visas.
“We have taken several strategic steps in the past few years to reduce our dependence on work visas, especially H-1Bs in the U.S.,” Sanghrajka said.
“This includes a reduction in onsite mix, increased focus on near-shoring, local hiring, university partnerships, and the creation of local hubs.”
Industry analysts say such measures are likely to accelerate as the economics of deploying foreign workers in the U.S. change dramatically. The new fee could force companies to either absorb higher costs, pass them on to clients, or further shift work offshore and to near-shore locations.
Legal Challenge Mounts
The policy has also triggered a significant legal response. Attorneys general from 20 U.S. states have joined a lawsuit against the Trump administration, arguing that the $100,000 fee was imposed without congressional authorization, proper legal notice, or a public comment process.
The outcome of the lawsuit could have far-reaching implications—not only for IT firms and foreign professionals, but also for the broader structure of U.S. employment-based immigration policy.
What’s at Stake
H-1B visas are temporary work permits granted to professionals in roles requiring at least a bachelor’s degree. They are typically issued for three years, with the option to extend up to six years. For decades, the program has been a cornerstone of the U.S. tech labor market, supplying skills in software, engineering, data science, and emerging technologies.
Whether the $100,000 fee succeeds in reshaping hiring practices—or instead pushes more work and talent away from the U.S.—remains an open question. What is clear is that for companies like Cognizant and Infosys, the cost of doing business in America has just risen sharply.
