US Tech Industry Sees Job Market Shift After H-1B Visa Fee Hike

The increase in H1-B visa fees has significantly altered job competition within the American tech industry.

A new fee policy for H1B Visas in the US, amounting to approximately ₹8.3 million, has sent shockwaves through the tech industry. This decision could make it significantly more difficult for Indian and other foreign professionals to secure jobs in the US. Conversely, it presents a substantial opportunity for young American professionals. The White House previously stated in a fact sheet that several US companies laid off American tech workers and replaced them with foreign employees.

One company approved 5,189 H-1B visas in FY 2025 while laying off approximately 16,000 American employees. Another company approved 1,698 H-1B visas and then laid off 2,400 American employees in Oregon in July. A third company reduced 27,000 American jobs from 2022 to 2025 while approving 25,075 H-1B visas. Yet another company laid off 1,000 American employees in February while approving 1,137 H-1B visas. American IT employees were also reportedly asked to train their foreign replacements. Zach Wilson, a former Meta employee and current founder of a data analytics company, openly discussed this issue. He stated that the new visa fee has completely altered the competitiveness of the tech job market.

Up to $1.5 Million in Costs

Wilson wrote, “When I was at Meta in 2017, 15 out of 17 people on my team were on H1B visas. I was one of only two Americans. Now, for teams like these, the visa fees alone could cost up to $1.5 million.”

Competitors Vanished Overnight

He added, “If you’re an American looking for a tech job, this is the best time ever. Over 80% of the competition vanished overnight.”

Strong Reactions on Social Media

Zach's post has been viewed millions of times on the social media platform X. Users are reacting strongly. One user commented, “This is the first time American graduates have had a fair chance.”

Most Startups Rely on Foreign Talent

Another user wrote, “This policy could stifle innovation as most startups rely on foreign talent.”
Another reaction was: “Companies will now outsource work to India or other countries.”

Some Call it a ‘Political Move’

However, not everyone agrees with the decision. One user wrote, “This seems like an election stunt, not an economic policy.” Another said, “This rule won’t last long, it will probably change after the next election.”

White House Clarification

Initially, there was considerable confusion regarding this fee. Commerce Secretary Howard Lutnick described it as a potential ‘annual fee’. However, White House spokesperson Karine Jean-Pierre later clarified that it is a one-time petition fee, not an annual charge.

Exemptions Possible

The government also stated that in certain cases, if a visa application is deemed to be in the ‘national interest’, an exemption from this hefty fee may be granted.

The Beginning of Major Changes in the US Tech Job Market

Nevertheless, the ₹8.3 million fee on H1B visas has initiated significant changes in the US tech job market. While it may offer more opportunities to Americans, it presents a new challenge for foreign talent. How the tech industry adapts to this change remains to be seen.