Trump Administration’s Tough Rules Prompt Indian IT Giants to Rethink H-1B Visas

Indian IT companies are reassessing their hiring strategies as US President Donald Trump’s administration tightens H-1B visa regulations and increases compliance requirements. Tata Consultancy Services (TCS), Infosys and Cognizant, which have traditionally sponsored large numbers of Indian technology professionals for US projects, have reportedly reduced their H-1B lottery registrations significantly, according to a Congressional Research Service report cited in the report. The shift reflects a changing approach to staffing US operations, with companies increasingly considering professionals already based in the United States, visa extensions and employee transfers. Hiring locally is also becoming an important option as sending new employees from India involves greater costs and regulatory uncertainty.

Proposed higher visa fees, potential increases in prevailing wages and changes to the selection process are adding to the challenges faced by employers. According to the supplied report, the US Department of Homeland Security proposed an additional fee of $103,265 for each covered petition in August 2026. The implementation status of this proposal requires official verification. Changes to the selection system are also intended to give greater weight to applications associated with higher-paid workers, while employers face increased scrutiny over employment practices, including layoffs. These developments could make it more difficult for Indian professionals seeking new H-1B sponsorships. Companies may increasingly reserve sponsorship for candidates with specialised technical skills and compensation levels that meet the applicable requirements.