Trump expected to add new $100,000 fee for H-1B worker visas, White House says

U.S. President Donald Trump plans to implement a new $100,000 application fee for H-1B worker visas and adjust prevailing-wage levels, aiming to reduce their use as part of a broader immigration crackdown. This policy change is expected to significantly impact technology and staffing companies, including major firms like Amazon, Microsoft, and Meta, which heavily rely on H-1B visa holders for technical roles. Following the news, shares of Cognizant Technology Solutions, an IT services company with substantial H-1B reliance, fell over 5%, reflecting market concerns over increased costs and potential labor restrictions.

Analysis

A planned presidential proclamation is set to introduce a new $100,000 application fee for H-1B visas and adjust prevailing-wage levels, creating a significant regulatory and financial headwind for technology and IT services companies. This policy directly impacts major tech firms that are heavy users of the program, including Amazon, with over 10,000 approved visas in 2025, and Microsoft and Meta Platforms, each with over 5,000. The market's immediate reaction highlights the perceived vulnerability of certain business models, with shares of IT services firm Cognizant Technology Solutions (CTSH), which relies extensively on H-1B holders, falling over 5%. The strongly negative sentiment score for CTSH (-0.7) compared to the moderately negative scores for AMZN, MSFT, and META (-0.4) underscores the differentiated risk profile between IT services providers and large, diversified technology platforms. The proposed changes are designed to materially increase the cost of hiring foreign talent, potentially compressing margins and forcing a strategic reassessment of talent acquisition and labor costs across the tech industry.

Key Decisions for Investors

• Investors should immediately review their exposure to IT services companies like Cognizant (CTSH), whose business models are highly dependent on the H-1B visa program and face the most immediate risk of margin compression and operational disruption.
• It is crucial to differentiate between pure-play IT services firms and large-cap technology companies such as Amazon, Microsoft, and Meta; while the latter will face higher costs, their scale and diversified revenue streams may provide a greater ability to absorb this financial impact.
• Monitor for the official signing of the proclamation and the specific details regarding changes to prevailing-wage levels, as these will be key catalysts determining the precise magnitude of the cost increases for affected companies.
• Consider the long-term strategic adjustments companies may undertake in response, such as accelerating investments in automation, increasing domestic hiring initiatives, or shifting some operations, which could alter their competitive positioning and cost structures.