Trump’s H-1B visa changes hit small employers hard, applications down 15%

As detailed in The New York Times, the administration’s changes disrupted critical pipelines in industries ranging from technology to health care and education.

The most controversial change is a $100,000 fee for certain new products H-1B visa The scheme was launched in September, leaving many small employers unable to afford it.

Read more: Indian H-1B technician accused of ‘fraud’ by Texas whistleblower Sara Gonzales

Sara McCabe, president of Wayside Youth and Family Support Network in Massachusetts, told The New York Times that her organization can no longer hire teachers through the program because of the new costs. As a result, schools turned away students due to lack of staff.

Likewise, health care providers in rural areas say rising costs have made it more difficult to recruit doctors and specialists.

Michaelle Waters, office manager of Carolina Nephrology Associates in Shelby, North Carolina, told the New York Times that the private practice is trying to use the H-1B program to hire a doctor in India. However, the federal government recently rejected its request for a fee waiver, which would only apply to foreign employees whose presence in the country is “in the national interest.”

Waters said that because the clinic cannot afford the $100,000 fee, it is not sure whether it can still hire the doctor. These practices are even considering taking out loans to cover visa fees to cope with financial stress.

“It’s not really feasible to fill this position with domestic candidates. They’re not interested in coming here. We can’t compete with the larger districts,” Waters told the New York Times.

While smaller organizations have struggled, large tech companies have been relatively immune to these changes.

The New York Times cited other immigration experts as saying that many large companies are recruiting international students already in the United States. These candidates have already waived the $100,000 fee, bypassing the biggest cost hurdle.

Additionally, these companies are in a better financial position to absorb higher visa costs and comply with new wage requirements.

Read more: H-1B visa registrations ‘down’, but some companies benefit from tighter visa rules

In addition to fees, new rules introduced in February 2026 prioritize higher-paid positions in the visa allocation process and propose raising the minimum salary threshold H-1B worker.

Officials said the measures would prevent businesses from taking advantage of the program to hire cheaper foreign labor and instead encourage domestic hiring.

In addition, many immigration attorneys report that the number of companies applying for H-1B visas has dropped significantly this year.

Figures cited in the report show some employers have seen a 15 per cent drop in applications and limited amounts to cover the new fees, suggesting a “chilling effect” on demand.