Two months after the Trump Administration’s September proclamation imposed an unprecedented $100,000 surcharge on most new H-1B petitions filed outside the country, employers are feeling the pinch. A ChannelE2E analysis published November 3 finds that small and mid-sized businesses—and many managed-service providers (MSPs)—are priced out of the program, while large tech multinationals absorb the cost to secure critical talent.
Industry analysts interviewed say SMBs that once sponsored a handful of specialty-occupation visas each year are now offshoring roles to Canada or Mexico or turning to contract suppliers. Larger integrators and outsourcers face millions in added costs but remain committed, arguing that the alternative is talent shortfalls that jeopardize AI and cybersecurity projects.
![$100,000 H-1B fee reshapes tech hiring landscape, squeezing SMBs]()
The fee applies to petitions filed on or after September 21 for beneficiaries outside the United States or cases requesting consular notification. Existing H-1B holders are exempt for extensions, but change-of-employer filings triggered at the consulate remain subject.
Legal challenges are expected, yet for now HR leaders must revisit workforce plans and consider near-shoring options or higher domestic salaries. Immigration counsel recommend early budgeting discussions: a five-petitioner mid-sized firm could see an extra half-million dollars in fees this fiscal year alone.
Industry analysts interviewed say SMBs that once sponsored a handful of specialty-occupation visas each year are now offshoring roles to Canada or Mexico or turning to contract suppliers. Larger integrators and outsourcers face millions in added costs but remain committed, arguing that the alternative is talent shortfalls that jeopardize AI and cybersecurity projects.
The fee applies to petitions filed on or after September 21 for beneficiaries outside the United States or cases requesting consular notification. Existing H-1B holders are exempt for extensions, but change-of-employer filings triggered at the consulate remain subject.
Legal challenges are expected, yet for now HR leaders must revisit workforce plans and consider near-shoring options or higher domestic salaries. Immigration counsel recommend early budgeting discussions: a five-petitioner mid-sized firm could see an extra half-million dollars in fees this fiscal year alone.
