The U.S. has implemented a significant change to the H-1B visa lottery system, effective from FY2025. Under the new rules, the lottery is weighted based on the wage level of the position, with higher-paying roles receiving greater chances of selection. In addition, a one-time fee of $100,000 per new H-1B application has been introduced, which is expected to affect companies that rely heavily on foreign talent.
This policy shift has raised concerns among tech companies, startups, and lawmakers about its potential effects on innovation, job creation, and the overall competitiveness of the U.S. economy. JPMorgan CEO Jamie Dimon said to CNBC, the executive order “caught everyone off guard,” adding, “I would beg the president… after border control, we should have good immigration.”
Top H-1B Sponsors and Their Strategic Responses
In the 2025 fiscal year, several companies were among the top sponsors of H-1B visas. These companies are now adapting their strategies in response to the new policy changes.
Fee burden = FY2025 H‑1B approvals × $100K. Percentages show illustrative impact on net income; actual costs may vary with policy implementation, exemptions, or earnings volatility.
Amazon
Approvals this year: Amazon led all companies with 14,667 H-1B visa approvals in FY2025, translating to an estimated $1.24 billion in new application fees if applied retroactively. (WSJ)
Amazon’s H-1B hires are central to AWS, robotics, Alexa AI, and logistics operations. In Q1 2025, the company onboarded nearly 11,300 workers in AI-related roles. Internal memos reportedly warned H-1B employees abroad to return before the fee took effect, cautioning that reentry could be jeopardized. An internal note read: “If you have H‑1B or H‑4 status and are outside the U.S.: try to return before tomorrow’s deadline if possible”.
Microsoft
Approvals this year: Microsoft received 5,189 H-1B visa approvals in FY2025.
Microsoft sponsors visas across AI, Azure, and OpenAI collaborations. Ahead of the policy, the company issued warnings to H-1B staff abroad: “We know this may interrupt your travel plans… stay in the U.S. in order to avoid being denied reentry”.
Microsoft continues to hire foreign workers in the U.S. via H-1B visas. There is no public confirmation of targeted recruitment in other countries or automation efforts directly tied to the H-1B policy.
Meta Platforms
Approvals this year: Meta secured 5,123 H-1B visa approvals in FY2025.
Meta leans on global engineers for AI infrastructure, research, and AR/VR projects. During the fee rollout, it restricted external travel for H-1B staff to reduce reentry risk. According to Business Insider, one internal memo reportedly instructed: “Stay put in the U.S.-avoid travel until further clarity arrives”.
Meta is under scrutiny by U.S. lawmakers regarding its H-1B visa usage amid layoffs. There are no public announcements regarding compensation changes or remote work adjustments in response to the new policy.
Apple
Approvals this year: Apple received 4,202 H-1B visa approvals in FY2025.
Apple integrates AI into its hardware design and iOS features. Apple’s reliance on global design and hardware teams means the surcharge may slow onboarding of specialized engineers for devices and embedded AI. Analysts note Apple could pivot more aggressively to domestic hires and remote R&D.
Apple is investing heavily in U.S. manufacturing and workforce development programs, including a Supplier Employee Development Fund for skills training. These initiatives support domestic talent pipelines, though not explicitly tied to H-1B policy changes.
Google (Alphabet)
Approvals this year: Google secured 4,186 H-1B visa approvals in FY2025.
Google is a pioneer in AI research and development, with applications across its product suite. Google’s DeepMind and Bard research hubs rely on global talent mobility. Internal advisories urged H-1B staff abroad to return promptly, warning of travel risk. “If you’re outside the U.S., try to return before the fee takes effect”.
Google is actively lobbying on technology and immigration-related policy. There is no public confirmation that the company is exploring alternative visa categories specifically in response to the H-1B policy.
Salesforce
Approvals this year: Salesforce received 813 H-1B visa approvals in FY2025.
Salesforce integrates AI into CRM through Einstein and automated workflows. The surcharge represents a significant cost per hire, encouraging internal training and acquisition of domestic talent as alternatives. Analysts suggest small teams will need to be strategically optimized to justify visa expense.
Salesforce is investing in AI automation and restructuring teams, including layoffs in customer support. The connection to reducing reliance on foreign labor has not been explicitly stated.
Nvidia
Approvals this year: Nvidia secured 756 H-1B visa approvals in FY2025.
Nvidia is a key player in AI hardware and software, particularly in GPU development. Nvidia depends on specialized engineers for GPUs and AI systems. CEO Jensen Huang told CNBC: “We want all the brightest minds to come to the U.S.… immigration is the foundation of the American Dream”. OpenAI’s Sam Altman added: “We need to get the smartest people in the country, and streamlining that process and also sort of aligning financial incentives seems good to me”.
Nvidia is opening a joint AI and robotics research lab in the UAE, marking its first AI Technology Center in the Middle East. This aligns with expansion into regions with favorable immigration policies and includes workforce development initiatives.
Broader Industry and Global Reactions
Not all leaders are optimistic. Michael Intrator, CEO of CoreWeave, said to CNBC that the surcharge adds “sand in the gears” of innovation, while Sequoia’s Michael Moritz criticized the announcement as “chaotic and half-baked,” predicting it will scatter jobs to hubs like Bengaluru, Warsaw, or Istanbul.
Financial leaders echoed worries about global competitiveness. John Waldron, president of Goldman Sachs, argued at a Financial Times event, that mobility restrictions make it harder to recruit globally: “The more barriers we put up around the world, the harder it is for companies like ours.”
Outside the U.S., Dave McKay, CEO of Royal Bank of Canada, described the policy as a “material opportunity” for Canada, saying to Bloomberg it could attract skilled workers who now see the U.S. as less accessible.
Impact on Startups and Small Firms
Startups and smaller firms face particularly sharp hurdles. Lower starting salaries place many startups at a disadvantage in the wage-based lottery system, while the $100,000 application fee adds a substantial financial burden that may discourage sponsorship of H-1B visas. As a result, startups could encounter limitations in accessing skilled foreign workers, potentially slowing innovation and growth. This combination of increased costs and reduced lottery odds could constrain the entrepreneurial ecosystem, which relies heavily on diverse talent pools.
A BBC report profiled Abhishek Singh, a software engineering manager at a U.S. startup, who worried he would have to leave the country because his employer could not afford the new fee. “There’s uncertainty now that anything can happen in the future,” Singh said, noting he may need to move to Canada, India, or another market if conditions tighten further.
Experts warn these costs could be crippling. John Skrentny, a professor at the University of California, San Diego, said to BBC, “If you’re a startup with new technology, and you’ve got some venture capital money but you’re worried about burning through it too quickly, this could kill you.”
The impact extends beyond tech. Karen Brady, CEO of the Seattle-based behavioral health nonprofit Ryther, told the BBC, “There’s no way that we can afford $100,000… In terms of future hiring, we won’t be doing any more H-1B visas.”Ryther employs therapists on H-1B visas who serve families in Chinese-speaking communities; Brady warned their roles cannot easily be replaced domestically.
Economists have also flagged broader risks. Atakan Bakiskan of Berenberg lowered his U.S. growth forecast from 2% to 1.5%, citing the policy as part of a broader “anti-growth” trend. Columbia Business School’s Dan Wang added that such measures often prompt offshoring: “These policies really don’t have the intended effect… There’s not a trace of data that suggests that American workers would benefit.”
Outlook
The introduction of the $100,000 fee and wage-based lottery represents one of the most consequential shifts in U.S. high-skilled immigration in decades. While the long-term effects remain uncertain, some leaders: including Huang, Altman, and Hastings, view the changes as a rational way to align incentives and prioritize top-tier roles. Others, from Dimon and Waldron on Wall Street, to Moritz and Intrator in tech, to Brady and Singh at small organizations, warn the policy could erode competitiveness, drive talent abroad, or place crushing burdens on smaller employers.
