The landscape of work visas in the United States is undergoing significant shifts, leaving companies and potential employees navigating a period of uncertainty. Recent changes to the H-1B visa program, implemented since September, are forcing businesses to reassess their strategies for attracting and retaining skilled foreign workers. These adjustments, ranging from increased fees to stricter vetting processes and a new lottery system, are impacting industries across the nation and prompting some to explore alternative staffing solutions. Five immigration attorneys who spoke with Business Insider highlighted the scramble to adapt, including rewriting travel guidance and developing backup plans, even considering relocating work overseas.
The Recent Turbulence in the H-1B Visa Program
The changes to the H-1B visa haven’t been incremental; they’ve arrived in waves. The initial shock came with the introduction of a $100,000 fee for new applications. This was quickly followed by more rigorous social media vetting requirements, which unexpectedly stranded some visa holders abroad during the holiday season. Now, the most substantial alteration – a wage-based lottery system – is poised to further reshape the program.
This new lottery prioritizes applicants with the highest salaries, granting them multiple entries for a greater chance of selection. Rohit Srinivasa, an immigration attorney based in Los Angeles specializing in startups and tech companies, aptly summarized the situation: “Unpredictability is one of the number one enemies for business.”
Companies Adjusting to a More Cautious Approach
The constant policy shifts are leading companies to adopt a more calculated and cautious approach to sponsoring employees for work visas. Divij Kishore, an immigration attorney at New York-based Flagship Law, has observed a significant decrease in inquiries. “We’ve seen a 40% to 50% drop in H-1B sponsorship inquiries compared to previous years,” he stated. “Typically, by this time of year, clients reach out with lists of employees they’d like to sponsor for the spring lottery. This year, that’s not been the case because employers are just not sure what the costs are.”
However, the impact isn’t uniform. K. Edward Raleigh, a partner at immigration firm Fragomen representing major tech companies like Apple and Nvidia, noted that overall H-1B filings haven’t slowed dramatically, largely due to a high volume of renewals for existing employees. Nevertheless, he confirms that companies are “tightening up their sponsorship guidelines” and “proceeding with caution,” aware that the $100,000 fee could be triggered by various factors.
Understanding the Scope of the New Fee
It’s important to note that the $100,000 fee applies specifically to new visa petitions for workers residing outside the US. It doesn’t affect foreign students already in the country transitioning to a work visa, or current H-1B holders seeking new employment. Despite this limited scope, the uncertainty surrounding potential future changes is driving the recalibration of company strategies.
Ted Chiappari, leading the immigration practice at Duane Morris, emphasizes the unpredictable nature of the current administration. “Just because things are one way on Monday doesn’t mean they’re going to be the same way on Tuesday, and they won’t switch back to things on Wednesday.”
Shifting Approvals and Exploring Alternative Visa Options
Data from the National Foundation for American Policy reveals a decline in H-1B visas issued to Indian IT consulting firms. Simultaneously, for the first time, Amazon, Meta, Microsoft, and Google dominated the top four spots for H-1B approvals in fiscal year 2025. This trend suggests a pre-existing reassessment of tech hiring strategies, even before the recent policy changes.
Faced with these challenges, companies are actively exploring alternative visa options. Srinivasa reports a surge in interest in O-1 visas, designed for individuals with “extraordinary ability.” However, qualifying for an O-1 visa requires a substantial track record of achievement. Other strategies include leveraging E-2 investor visas for founders from treaty countries and utilizing the EB-1C path for managers.
Furthermore, companies are increasingly establishing international offices and employing L-1 visas to transfer employees. Services like Deel and Rippling, which act as official employers and handle immigration paperwork, are also gaining traction. Big Tech and Wall Street firms are expanding operations in cities like Bengaluru and Hyderabad, indicating a potential shift in where work is performed.
The Impact of the Wage-Based Lottery
Starting with the 2026 lottery, the selection process will be weighted by salary. Applicants offered the highest wages will receive four entries, while those at the lowest tier will receive only one. The administration argues this will prioritize the most skilled workers.
However, this system raises concerns about equity. Sophie Alcorn, a Bay Area immigration attorney specializing in startups, points out that a higher salary doesn’t necessarily equate to greater skill. “Often the best startup founders forgo being paid a living wage because they’re so dedicated to the mission,” she explains. “Those same startups may be the ones that have the most difficulty in getting the right people through this future system.”
Kishore adds that the new system could disadvantage students entering the workforce at lower salaries, potentially reducing their chances in the lottery. Companies are advised against artificially inflating salaries to game the system, as the wage spread is often insufficient to justify the cost.
Adapting to a New Normal: Compliance and Travel Concerns
Beyond the lottery, companies are updating their compliance strategies to avoid triggering fees or violating new rules. Ensuring employees maintain valid immigration status is paramount, as any lapse could necessitate a new visa application and incur the $100,000 fee.
Companies are also revising their HR policies, particularly regarding social media presence, to comply with the enhanced vetting procedures. Some are even advising employees to avoid international travel altogether, despite technically being permitted. Chiappari notes the resulting anxiety among H-1B holders, many of whom are postponing personal events like weddings and vacations due to fear of being denied re-entry.
Ultimately, the recent changes to the H-1B visa program demand agility and preparedness from employers. As Kishore aptly states, “Employers need to be prepared and agile for what’s coming in the next few months.” The future of skilled immigration to the US remains uncertain, but one thing is clear: companies must adapt to navigate this evolving landscape.