New policies under President Donald Trump drive sharp drop in H-1B participation while shifting hiring trends.
By yourNEWS Media Newsroom
Policy changes targeting employment-based visas are reshaping hiring patterns in the United States, with new data showing a sharp decline in participation in the H-1B program as costs and regulatory scrutiny increase under President Donald Trump’s administration.
According to reporting from Axios, a $100,000 fee imposed on H-1B visa applicants has significantly reduced demand, with only 85 applicants paying the fee as of mid-February. The policy, introduced through a presidential proclamation in September, represents a major shift in how the United States manages high-skilled foreign labor.
A spokesperson for U.S. Citizenship and Immigration Services, Matthew J. Tragesser, said the change is intended to prioritize domestic hiring. “American workers must come first,” he said, adding that the fee “sends a clear message” about hiring priorities.
The H-1B visa program, established in 1990, allows U.S. employers to hire foreign workers for specialty occupations. Historically, the program has been heavily concentrated in the technology sector, which accounts for roughly 70% of petitions filed annually, according to industry data. More than 65,000 individuals approved for H-1B visas in fiscal year 2024 would have been affected by the new fee structure.
Recent updates from USCIS indicate that the agency has already reached its cap for fiscal year 2027 registrations, said the agency in a notice issued this week.
In addition to higher application costs, the Department of Labor is advancing a revised wage formula aimed at aligning foreign worker compensation more closely with that of U.S. employees. A department spokesperson said the prior system “implicitly allowed employers to hire experienced foreign workers and pay them as an entry-level U.S. worker,” creating incentives to bypass domestic hiring.
The proposed rule is intended to address those disparities and ensure compliance with labor standards governing foreign employment programs.
The policy direction reflects broader debate within political and business circles over the role of foreign labor in the U.S. economy. Business leaders including Elon Musk and Vivek Ramaswamy have previously expressed support for the H-1B program, while critics such as Steve Bannon and Matt Gaetz have called for restrictions.
The White House has characterized the administration’s position as balancing economic needs with domestic workforce protection. Press secretary Karoline Leavitt said the president supports ensuring Americans are prioritized for available jobs while maintaining flexibility where necessary.
Data from the Department of Homeland Security shows that individuals born in India accounted for 72% of H-1B recipients between October 2022 and September 2023, according to a congressional report.
At the same time, the domestic tech workforce has experienced layoffs in recent years. More than 428,000 technology workers were laid off in 2022 and 2023, with an additional 124,000 cuts reported across 384 companies in 2024, according to policy analysis.
Estimates suggest there are as many as 730,000 H-1B visa holders currently residing in the United States, estimated by immigration analysts earlier this year.
Advocates for U.S. workers argue that the program has historically placed downward pressure on wages and increased competition for jobs. Kevin Lynn said the new fee has shifted the policy debate but raised concerns about its durability.
“The biggest positive is the $100,000 fee has had the effect of moving the Overton Window substantially to our side,” Lynn said, while warning that without formal rulemaking, the policy could be reversed by future administrations.
As regulatory changes take effect, hiring trends in the technology sector continue to adjust, with policymakers weighing the long-term balance between labor market demand and domestic workforce protection.
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