A recent hike in the H-1B visa application fee has prompted a quiet but notable shift in the hiring practices of many American tech companies. Following US President Donald Trump’s decision to increase the fee to a staggering $1,00,000, job postings for roles traditionally filled by foreign professionals are increasingly being marked with a straightforward qualifier: “Open to US citizens only.”
Technical roles such as software developers, project managers, process engineers, and UI/UX designers are among the most affected. These positions, once widely accessible to skilled workers from abroad, particularly India, are now largely out of reach—unless, of course, one happens to hold a US passport.
The new policy, which came into effect last month, applies to companies hiring new H-1B applicants. Industry experts say the change has rendered hiring foreign talent “financially unviable” for many organisations, particularly small and mid-sized firms already operating within tight budget constraints.
As a result, many recruiters report that companies are gradually—but deliberately—shifting their focus toward domestic candidates to avoid the steep cost of bringing in international workers. For some, it’s a matter of economic survival.
Speaking to a national newspaper, Rebeca Pardo, a hiring assistant at a San Francisco-based tech firm, explained: “Our budgets cannot handle a $1,00,000 fee for every new hire. Thus we’re told to prioritise US citizens only.” She added, “It is not about discrimination. It’s solely about the cost for companies. Multinational companies and major corporations could hire a few H-1B applicants as they have a lot of budget, but medium to small faring companies cannot sustain with such a heavy fee.”
The decision has had an especially unsettling impact on international students currently in the US on Optional Practical Training (OPT), many of whom had hoped to transition into longer-term roles through the H-1B programme.
The report cited the example of a computer science graduate working in Texas. His firm was hopeful about giving him H-1B. But, following the order, the company has made it known that it won’t hire him after the OPT ends.
While supporters of the new fee argue that it encourages hiring local talent, critics caution that it risks shutting the door on highly skilled workers, potentially widening the tech talent gap and undermining long-term economic growth. In the short term, however, one thing is clear: hiring foreign professionals just got a lot more expensive and a lot less likely.
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