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Trump's H-1B visa changes hits small employers hard, 15% drop in applications
Trump's H-1B visa program changes have created challenges for small employers, with a $100,000 fee hindering hiring in critical sectors.
Sweeping changes to the H-1B visa programme under Donald Trump are significantly reshaping how US employers hire foreign workers, with a steep $100,000 fee and new wage-based. These rules have created uneven impacts across industries, the New York Times reported.
According to a detailed report by The New York Times, the administration’s overhaul has disrupted a key pipeline for sectors ranging from technology to healthcare and education.
The most controversial change, a $100,000 fee on certain new H-1B visas introduced in September, has made the programme unaffordable for many small-scale employers.
Read more: Indian techie on H-1B accused of 'scam' by Texas whistleblower Sara Gonzales
Impact on smaller employers as costs surge
Nonprofits, rural hospitals, and small businesses have been among the hardest hit by the changes.
Sara McCabe, president of the Wayside Youth & Family Support Network in Massachusetts, told the NYT that her organisation can no longer afford to hire teachers through the programme due to the new fee. As a result, the school has turned away students because it lacks staff.
Similarly, healthcare providers in rural areas say the increased cost is making it harder to recruit doctors and specialists.
Nephrology Associates of the Carolinas' office manager in Shelby, North Carolina, Michaelle Waters, told the NYT that the private practice is attempting to use the H-1B program to hire a doctor in India. However, the federal government recently rejected its request for a fee waiver, which is only given to foreign employees whose presence in the nation "is in the national interest."
Waters stated that because the clinic could not afford the $100,000 charge, it was uncertain if it could still hire the physician. These practices even consider loans to cover visa expenses to manage the financial strain.
Waters told NYT, “Filling the position with a domestic candidate is not really feasible. They’re not interested in coming here. We can’t compete with bigger areas.”
Big tech and US-based hires less affected
Experts like immigration lawyer Vic Goel told the NYT that the impact of these reforms has been “not uniform,” with disparities emerging across sectors and employer types.
While smaller organisations struggle, large technology companies have been relatively insulated from the changes.
The NYT cited other immigration experts who note that many major firms recruit international students already in the US. These candidates are already exempt from the $100,000 fee, allowing them to bypass the biggest cost barrier.
Additionally, these companies are better positioned financially to absorb higher visa costs and comply with new wage requirements.
Read more: H-1B visa registrations ‘dip’ but some firms benefit amid tighter visa rules
What are the Trump H-1B visa changes?
The Trump administration has defended the changes as necessary to protect US workers and raise wages.
In addition to the fee, new rules introduced in February 2026, prioritise higher-paid positions in the visa allocation process and propose raising minimum wage thresholds for H-1B workers.
According to officials, these steps will discourage companies from using the programme to hire cheaper foreign labour and instead incentivise domestic hiring.
Moreover, numerous immigration attorneys reported significant drops in the number of businesses requesting H-1B visas this year.
Data cited in the report shows a 15% drop in applications among certain employers and only a limited number of payments made toward the new fee, suggesting a “chilling effect” on demand.
