What Happens When Companies do not Pay $100,000 for H-1B Visas: A Crisis for Indian Talent and U.S. Innovation

What Happens When Companies do not Pay $100,000 for H-1B Visas – The U.S. tech industry is facing a storm. President Donald Trump’s executive order imposing a $100,000 annual fee on new H-1B visa applications has sent shockwaves through Silicon Valley and beyond. While the policy aims to protect American workers, it has left companies scrambling and thousands of Indian professionals fearing for their futures.

The question now is: Will U.S. companies pay the fee? And if not, what happens to the employees they rely on?

This blog dives deep into the reactions from major corporations, the expected actions, and the ripple effects on global talent, business continuity, and innovation.

How U.S. Companies Are Responding: Shock, Scramble, and Silence

The announcement came with almost no warning. Signed on September 19, 2025, the order took effect just two days later, leaving companies with little time to prepare.

Immediate Reactions:

• Microsoft, Amazon, Meta, and JPMorgan issued internal advisories urging H-1B employees to stay in the U.S. and avoid international travel.
• Amazon’s internal memo warned: “If you have H-1B status and are in the U.S., stay in the country for now”.
• Meta and Google reportedly asked employees on leave to return immediately.
• Indian IT firms like Infosys, Wipro, and TCS remained silent publicly but are believed to be reviewing their visa strategies.

Behind the Scenes:

• Legal teams are assessing whether the fee can be challenged in court.
• HR departments are reevaluating hiring plans and visa sponsorship budgets.
• Some companies are considering offshoring roles to avoid the cost.

“Companies need to decide if a foreign worker is valuable enough to pay $100,000 per year to the U.S. government, if not, that worker will have to head home,” said U.S. Commerce Secretary Howard Lutnick.

Are Companies Ready to Pay? The Harsh Reality of the $100K Price Tag

The H-1B visa has always come with costs – legal fees, filing charges, and compliance requirements. But $100,000 per year per employee is unprecedented.

What the Fee Covers:

• $100,000 upfront for new petitions
• $100,000 annually to maintain the visa
• Applies to both fresh applications and extensions

Financial Impact:

Company Type	Impact of Fee
Large Tech Firms	May absorb costs for top talent; selective sponsorship
Mid-sized Enterprises	Likely to reduce H-1B hiring or shift to remote teams
Startups	May abandon H-1B hiring altogether
Indian IT Firms	Risk losing U.S. contracts due to cost hikes

“This is just not economic,” said a visa consultant working with JPMorgan.

Who Will Pay?

• Employers are legally required to pay H-1B fees not employees.
• Some companies may pass costs indirectly through reduced benefits or stalled promotions.
• Others may prioritize only senior or revenue-generating roles for sponsorship.

What If Companies Don’t Pay? Consequences for Businesses and Workers

What Happens When Companies do not Pay $100,000 for H-1B Visas – If companies choose not to pay the fee, the repercussions will be felt across the board.

For Employees:

• Job Loss: Without sponsorship, workers must leave the U.S.
• Career Disruption: Years of effort and investment may be lost
• Family Separation: H-4 dependents may also be forced to leave
• Emotional Toll: Anxiety, uncertainty, and heartbreak

“I cancelled my wedding trip. I don’t know what to do,” said an engineer stranded in India.

For Companies:

• Talent Drain: Losing skilled workers in AI, cybersecurity, and software
• Project Delays: Onshore projects may stall due to staffing gaps
• Client Impact: Missed deadlines and reduced service quality
• Innovation Risk: Fewer diverse perspectives in product development

For the U.S. Economy:

• Reduced Competitiveness: Global talent may shift to Canada or Europe
• Higher Costs: Training local workers may take longer and cost more
• Legal Challenges: Companies may sue or lobby for exemptions

“Adjustments of this nature can potentially have ripple effects on America’s innovation ecosystem,” said NASSCOM.

Also read: Why Trump’s Game-Changing H-1B Fee Could Reshape US-India Tech Relations Forever

What’s Next: Adaptation, Advocacy, and Alternatives

The future of H-1B hiring is uncertain, but companies and workers are already exploring alternatives.

Possible Actions by Companies:

• Selective Sponsorship: Only for critical roles or senior talent
• Remote Work Expansion: Hiring talent in India or other countries
• Green Card Acceleration: Fast-tracking permanent residency for key employees
• Legal Pushback: Challenging the fee in court or lobbying for waivers

Possible Actions by Employees:

• Return to India: Many are already stranded or planning to leave
• Explore Canada or Europe: Countries with friendlier immigration policies
• Upskill for Remote Roles: AI, cloud, and cybersecurity are in demand
• Seek Legal Advice: Immigration attorneys are flooded with queries

Government Engagement:

• India’s MEA is studying the implications and hopes for U.S. cooperation
• U.S. Agencies have clarified that current visa holders are not affected
• Policy Review may follow if legal or diplomatic pressure mounts

Final Thoughts: A Moment of Reckoning for Global Talent Mobility

If companies choose not to pay the $100,000 H-1B visa fee, the consequences will be severe. Skilled workers may be forced to leave the U.S., disrupting projects and weakening innovation. Businesses risk losing global talent, facing delays, and shifting operations offshore. For employees, it means emotional distress, career setbacks, and family separation. Without urgent adaptation or policy relief, both corporate growth and human dignity stand at risk in this unfolding crisis.

The $100,000 H-1B visa fee is more than a financial hurdle, it’s a test of values. Will companies invest in global talent, or retreat into protectionism? Will workers be treated as assets or liabilities?

For Indian professionals, the message is clear: adapt, upskill, and stay informed. For companies, the challenge is to balance cost with innovation. And for policymakers, the responsibility is to ensure that immigration remains a bridge not a barrier. As the dust settles, one thing is certain: the future of work is changing. And those who act with clarity, compassion, and courage will shape it.

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