Why have H-1B visa applications plunged? Blame it on steep fee hike & Donald Trump’s anti-immigration stance

H-1B visa registration decline comes at a time when visa fee has increased sharply and the US economic slowdown has resulted in job cuts. (AI image)

Donald Trump impact: H-1B visa applications for FY26 have decreased by 25% to 358,737 compared to the previous year, as per United States Citizenship and Immigration Services (USCIS) data. The number of shortlisted candidates reduced by 27% to 120,141, from which 85,000 H-1B visas will be granted.The FY26 selections, reaching their lowest point since FY22, come at a time when visa fee has increased sharply and the US economic slowdown has resulted in job cuts. The United States issues 85,000 skilled worker H-1B visas annually, with India being a a huge beneficiary. Both US organisations and Indian IT companies utilise these visas to deploy skilled professionals overseas. The USCIS conducted H-1B registrations for FY26 from March 7-24, and selected candidates will proceed with their fiscal year petition submissions.Also Read | Forced to destroy! US rejects 15 mango shipments from India, exporters estimate losses of $500,000

Why Have H-1B Visa Registrations Declined?

According to experts who spoke to ET, US President Donald Trump’s immigration policies and stricter regulations have influenced this trend. Additional requirements now include social media verification and enhanced documentation requirements.The increased application cost from $10 to $215 has been a significant barrier, according to Poorvi Chothani of LawQuest, a US immigration firm. “Earlier, even if companies estimated they needed 20-30 people, they would file (applications) for 30 to be on safer side,” she said. “This time, they have made a thorough analysis and taken conservative approach.”The reduction in numbers this year is also attributed to staff reductions at major technology companies like Microsoft and Meta, Chothani noted.Students without immediate requirements to convert to work visas post-education are opting to leave the US. “There was fear among students who had potential OPT (optional practical training) opportunities,” Chothani said. “In this uncertain environment, even a little run-in with the law can get you into trouble. They have decided to play it safe and go home.” STEM students face possible departure requirements within one year of completion, following proposed legislation to eliminate OPT work authorisation. Currently, OPT permits a three-year post-graduation stay for job seeking. The administration’s immigration enforcement has intensified, continuing policies from the previous term.Gnanamookan Senthurjothi, who leads The Visa Code, a US immigration firm, points out that even minor violations like jaywalking are being documented, creating difficulties for immigrants.The visa application procedures have become increasingly complex in recent periods.Also Read | Why India can be a big winner of Donald Trump 2.0 era if it plays its cards rightSince early this year, social media verification has become more rigorous, according to Senthurjothi. There has been an increase in requests for evidence (RFEs) and additional documentation. “In some cases, even after a visa is approved, the stamping and issuance is taking four weeks, where it usually takes about a couple of days,” Senthurjothi said. The annual H-1B visa allocation includes 85,000 visas, with 20,000 specifically reserved for individuals holding advanced degrees.“Based on evidence from FY23 and FY24 H-1B cap seasons, we have undertaken extensive fraud investigations, denied and revoked petitions accordingly, and continue to make law enforcement referrals for criminal prosecution,” USCIS said in its report. “We are also reviewing FY25 data and will review FY26 data for any attempts to gain an unfair advantage through the beneficiary-centric selection process. If applicable, we will deny or revoke any petitions and make law enforcement referrals for criminal prosecution accordingly.“H-1B visa applications for FY25 totalled 479,953, with 135,137 candidates shortlisted. In the year before that, 780,884 applications were received, and 188,400 were shortlisted.