Alarming H1-B Fee Hike: IT Sector Faces Turmoil as Microsoft and JP Morgan Respond – Industry Reactions Unveiled
US President Donald Trump recently signed an executive order imposing a substantial $100,000 fee on H-1B visa applications, sparking widespread criticism from industry leaders and lawmakers alike. They describe the move as “reckless,” warning of its potential to severely harm the IT sector and stifle innovation.
In his proclamation titled “Restriction on Entry of Certain Nonimmigrant Workers,” Trump stated that the H-1B visa program-a pathway for high-skilled foreign workers-had been misused to replace American workers with lower-paid labor. He argued that this abuse presents a “national security threat,” referencing investigations by domestic law enforcement agencies into H-1B-dependent outsourcing companies accused of visa fraud and other illicit activities.
Congressman Raja Krishnamoorthi voiced strong disapproval of the fee increase, branding it a “reckless attempt to cut America off from high-skilled workers.” He emphasized that H-1B holders contribute significantly to the U.S. economy, often becoming citizens who create jobs and fuel innovation. “While other nations race to attract global talent, the United States should modernize our immigration system, not erect barriers that weaken our economy and security,” Krishnamoorthi said.
Ajay Bhutoria, a former advisor to President Joe Biden, echoed these sentiments, asserting that the fee hike poses unprecedented challenges to the tech industry. The increase from the current fees-ranging from $2,000 to $5,000-will disproportionately affect small businesses and startups that rely on diverse talent for growth and innovation.
Khanderao Kand of the Foundation for India and Indian Diaspora Studies described the decision as “unfortunate,” predicting significant repercussions for the U.S. tech sector. “The $100k fee for H-1Bs is a very unfortunate policy with a huge negative impact on business, especially in the software and tech industry,” Kand noted. He emphasized the already harmful effects of artificial intelligence and tariffs on U.S.-educated STEM talent, calling for greater awareness of talent shortages and the challenges they pose to startups.
The corporate response has been swift. Companies like Microsoft and JP Morgan have issued directives to their H-1B and H-4 visa holders. Microsoft urged employees currently abroad to return to the U.S. before a September 21 deadline. In contrast, JP Morgan advised its H-1B visa holders to refrain from international travel until more information is provided.
Market reactions reflect growing concern about the fee increase. Shares of Cognizant Technology Solutions, a prominent IT services company heavily reliant on H-1B visa holders, fell nearly 5%. Similarly, U.S.-listed shares of Indian tech firms Infosys and Wipro dropped between 2% and 5%. Many large American tech, banking, and consulting firms have either declined to comment or have not promptly responded to inquiries regarding the new policy.
As the implications of this decision unfold, the tech industry and lawmakers are calling for an urgent reassessment of immigration policies that have long bolstered the U.S. economy and workforce.
Original Source: https://www.livemint.com/news/us-news/reckless-h1-b-fee-hike-to-impact-it-sector-negetively-microsoft-jp-morgan-issue-directive-how-industry-is-reacting-11758339027637.html
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Publish Date: 2025-09-20 09:52:00
