Overview

• The White House’s Sept. 19 policy imposes a $100,000 annual charge on each new H‑1B application, with media clarifications indicating renewals and re‑entries for current holders are not subject to the fee.
• Executives and advisers say firms are weighing whether to pay the charge or move roles, with contingency plans spanning relocation, near‑shoring to Mexico, and remote hiring through employer‑of‑record platforms.
• Economists warn the higher cost will sharply reduce use of H‑1B visas and slow hiring and productivity, including at major finance and tech employers that rely on software engineers and quantitative specialists.
• Governments and recruiters in India, the U.K., the European Union, Canada, China, Australia and Asia are intensifying pitches to attract talent, including U.K. proposals to cut fees, EU research funding, Canada’s outreach, and China’s new K visa program.
• The stakes are large given roughly 400,000 H‑1B approvals in 2024—about two‑thirds renewals—with more than 70% of beneficiaries from India, prompting companies to reassess where future high‑skill roles will be based.