H-1B Visa Applications Experience Sharp 50% Decline Following Policy Overhaul
Immigration experts are now reporting a dramatic plunge in applications for the H-1B visa program for skilled non-immigrant workers, with filings dropping by as much as 50% compared to the previous year. This significant decrease follows sweeping policy changes implemented under the Trump administration that have reshaped the entire application landscape.
New Fee Structure and Selection Process Deter Applicants
According to analysis from immigration professionals, the introduction of a substantial $100,000 fee for fresh H-1B registrations has become a major deterrent for potential applicants. Rajiv Khanna, managing director at Immigration.com, confirmed to Economic Times that "We are down about 50% filings compared to the previous year partly due to the $100,000 fee for H-1B petitions and partly due to wage-based selection."
The U.S. Citizenship and Immigration Service (USCIS) opened registration for fiscal year 2026 on March 4, with the application window closing on March 9. Historically, approximately 400,000 petitions have been filed annually, with 85,000 selected through a lottery system. However, attorney Shilpa Malik of VisaNation Law Group now anticipates filings will fall dramatically to between 250,000 and 300,000 this year.
Wage-Based Lottery System Disproportionately Affects Entry-Level Roles
The newly implemented H-1B visa framework, which combines the substantial $100,000 fee with a wage-based lottery selection system, has created particular disadvantages for entry-level job positions. While USCIS has clarified that the increased fee does not apply to F-1 students changing their status to H-1B, immigration attorneys report that overall demand remains significantly lower than previous years.
This policy shift has created a weighted lottery system that favors higher-wage positions, meaning lower-wage graduates now face substantially reduced odds of selection. The changes have fundamentally altered the economic calculus for both applicants and employers participating in the program.
IT Outsourcing Firms and Indian Workers Among Hardest Hit
Immigration experts note that the sharpest impact of these policy changes falls on IT outsourcing firms and employers who have historically relied on high-volume, entry-level H-1B filings. "That model is becoming economically unsustainable," explained attorney Shilpa Malik, highlighting how the new fee structure and selection criteria have disrupted traditional hiring patterns.
Meanwhile, major technology companies are expected to adopt more selective hiring approaches, focusing primarily on senior and specialized roles that command higher wages and therefore receive preference in the new lottery system.
Indian professionals, who accounted for a substantial 71% of all approved H-1B visas in fiscal year 2024, are among the most significantly affected by these changes. Both individual lower-wage graduates and outsourcing giants like Tata Consultancy Services and Infosys—historically among the top H-1B employers—must now adapt their strategies to navigate the transformed regulatory environment.
The combination of increased financial barriers and a selection system that prioritizes higher compensation levels has created a perfect storm that has reduced application volumes by approximately half, marking one of the most substantial shifts in H-1B visa program participation in recent history.
