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H-1B $100k fee

Policy & Regulation · Sector rules & licensing

What it is

A $100,000 fee on new H-1B petitions, effective from the 2026 application cycle, aimed at the practice of staffing US client sites with offshore talent on visas

Large Indian providers had already cut H-1B dependence well below 50% of their US workforce over the preceding years

Impact on industries

  • Directly raises the cost of the onsite delivery model, with an estimated $500mn annual fee increase for the largest providers if staffing practices were maintained
  • Mid-tier and smaller providers are disproportionately exposed, since visa dependency is higher relative to revenue and people-centric models offer less flexibility
  • Accelerates offshoring, which is structurally better for Indian margins - work moved to India costs less to deliver than onsite work ever did
  • Prior cuts to H-1B reliance mean the shock lands on a smaller base, and onsite rates are expected to rise so part passes to clients

Industries affected