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Trump’s $100K H-1B Fee Hits Outsourcing Hard, Puts Workers First

President Trump signed a proclamation this week slapping a staggeringly high $100,000 fee on each new H-1B visa application, a move put into effect on September 21, 2025 and designed to curb the rampant gaming of our immigration system. The White House made clear the goal is to stop companies from using cheap foreign labor to undercut American wages and to steer the most highly paid, highest-skilled jobs to true world-class talent. This isn’t bureaucratic theater — it’s an unapologetic attempt to put American workers first after decades of being sold out.

The markets reacted immediately, with Indian IT stocks taking the brunt of investor anxiety as Infosys, Wipro, Cognizant and others slid in both U.S. and Indian trading sessions. Analysts warned that the sudden hike and lack of transition time sent a clear shock through outsourcing-dependent business models, and investors punished firms that rely on continual rotations of foreign tech labor. If you’ve been listening to the outsourcing lobby for years, this is the price of exporting our jobs while pretending it helps America.

Officials say the fee targets new entrants and visa stampings abroad, creating a two-tiered system that shields current holders for now but slams the door shut on fresh inflows unless employers are willing to pay up. The abrupt timetable has already caused chaos for companies mid-hiring cycle, and firms are scrambling to figure out whether they must pay or redesign entire staffing plans overnight. This is precisely why sweeping reforms matter: give employers clarity and give American workers the priority they deserve.

The arithmetic is brutal for the Indian IT model — analysts calculate the levy could wipe out a meaningful chunk of profit for large service providers if hiring patterns don’t change, turning a previously negligible visa charge into a multi-million dollar line item. Big players that sponsored thousands of visas would see fees skyrocket from the current few hundred dollars to millions or billions under the new regime, forcing margins, contracts, and delivery models to be rethought. Let industry cry about margins; our country has been bleeding middle-class opportunity for too long.

Some in Big Tech will howl, but the reality is more complicated: diversified giants like Alphabet, Microsoft and Amazon showed relative resilience in early trade because their scale and pricing power let them absorb shocks that crush smaller outsourcers. The true test of American enterprise is adaptation — companies that invest in domestic talent, reshore critical work, and stop treating the U.S. workforce like a last resort will come out stronger. This policy is a wake-up call for corporate America to stop outsourcing the future of our children.

Expect legal challenges, diplomatic grumbling, and emergency contingency plans from firms used to playing by old rules, but don’t mistake that noise for a moral argument. Courts and lobbyists will fight, India will protest, and some projects will be delayed — all predictable reactions to a long-overdue policy that finally puts Americans before foreign labor arbitrage. Hardworking citizens should stand behind measures that restore common-sense hiring, reward homegrown talent, and force companies to compete by innovating here rather than shipping jobs overseas.

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