H-1B Visa Fee Hike 2025: Impact on U.S. Hiring & Global Talent

Understand the Landscape 

The H-1B visa program has long served as a bridge between U.S. companies and global talent, especially in sectors like technology, finance, and consulting. In FY2024, over 141,000 new H-1B visas were issued, with a total of 400,000 approvals, most being renewals. Most of these visas went to professionals from India (71%) and China (12%), filling roles such as software engineers, data scientists, and financial analysts. While big tech firms dominate H-1B sponsorships, midsized businesses with lean HR teams and limited budgets have relied on the H-1B program to fill specialized roles.  

Understand the Change

On September 19, 2025, the U.S. government announced a significant overhaul of the H-1B visa program, introducing a $100,000 fee for new petitions submitted after September 21, 2025. This change is part of a broader effort to reform skilled immigration and prioritize domestic hiring.   

Key implications include: 

• The fee applies only to new H-1B petitions, not renewals. 
• It is a one-time cost, not recurring annually. 
• Exceptions may be granted for roles deemed essential to national interest. 

These changes may represent a fundamental shift in how U.S. companies may build teams and access global talent. 

Understand the Impact 

Let’s explore how different segments of U.S. businesses are affected: 

• Large IT Services Staffing Firms: These firms — often top H-1B sponsors — may need to reassess their pricing models and client relationships. The added cost may be passed on to clients, potentially impacting demand. They may face increased scrutiny and compliance complexity, which could slow down hiring cycles. 
• Large Multi-National Corporates: Global enterprises with deep pockets may absorb the fee, but the shift still introduces friction. These companies often set industry standards for compensation and hiring practices. Their continued access to foreign talent could widen the gap vs. smaller competitors, reinforcing labor cost advantages. 
• Mid-Market Corporates: Mid-sized firms (100–1,000 employees) may navigate a new reality.  Too large to rely solely on local talent, yet not large enough to absorb six-figure visa fees without impact. These companies may explore alternatives like global contractors and distributed teams, while investing in more agile workforce planning. 
• Small Businesses & Startups: These businesses are disproportionately affected. With less access to specialized talent and constrained budgets, the new fee effectively removes H-1B as a viable option. These firms are increasingly considering global workforce solutions to fill skill gaps and maintain growth momentum. 

Explore Global Talent Pool

The global talent pool has never been more accessible or more essential. Since the pandemic, remote work has evolved from a contingency plan to a strategic advantage. Today, digital platforms and infrastructure enable companies to build distributed teams that operate across borders and time zones.   

For U.S. businesses, this means: 

• Speed to market: Hiring globally allows companies to onboard talent quickly in regions with available skillsets.
• 24/7 productivity: Distributed teams can operate around the clock, accelerating delivery and responsiveness.
• Local market insights: Global hires bring cultural fluency and customer insights that enhance growth strategies. 

Explore Alternate Options 

Employer of Record (EOR) solutions are transforming how companies scale globally. An EOR acts as the legal employer of a worker on behalf of a business, managing payroll, benefits, withholding taxes, and compliance in the country where the worker resides. This allows companies to hire team members internationally without setting up a local entity.  EORs simplify global hiring by: 

• Handling employment contracts and local labor law compliances.
• Managing payroll and benefits across jurisdictions. 
• Reducing time-to-hire and administrative overhead. 

Explore Payoneer Thought Leadership 

CEO John Caplan emphasized, “Entrepreneurs aren’t waiting around — they’re already finding ways to connect with talent around the world while staying compliant in a fast-changing environment.”   We are here to help you navigate this change.

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