The H-1B visa program, long a cornerstone of America’s high-skilled immigration system and a lifeline for the global tech industry, is facing its most significant upheaval in decades. In a flurry of policy changes, political scrutiny, and legal challenges, both U.S. and foreign tech giants are grappling with a shifting regulatory landscape that could reshape how they hire and compete in the world’s largest technology market.
On September 24, 2025, Democratic Senator Dick Durbin of Illinois and Republican Senator Chuck Grassley of Iowa sent pointed letters to the CEOs of major U.S. tech companies—Meta, Apple, and Google—as well as to Indian IT powerhouses Tata Consultancy Services (TCS) and Cognizant. The senators’ message was blunt: why, amid high unemployment among American tech workers and ongoing waves of layoffs, are these firms continuing to sponsor thousands of H-1B visas for foreign employees?
The timing of the senators’ intervention was no accident. Just two days earlier, the Trump administration announced a dramatic new policy: a $100,000 fee on each new H-1B visa, a staggering increase from the previous $1,000 one-time fee and the existing $5,000 in other charges. The administration also proposed overhauling the lottery-based H-1B allocation system, giving preference to applications for higher-wage jobs. According to East Bay Times, legal experts expect the new fee and lottery changes to trigger a wave of lawsuits from affected companies and advocacy groups.
Federal data underscores just how reliant Silicon Valley’s biggest players have become on the H-1B program. In 2025 alone, Meta received 5,123 H-1B approvals, Apple 4,202, and Google 4,181—making them the fourth, fifth, and sixth largest users nationwide. Yet these same companies have also been laying off American workers in droves: Meta shed a quarter of its workforce between 2022 and 2023, plus another 3,600 jobs this year; Apple conducted four rounds of job cuts in 2024, affecting hundreds; and Google has eliminated tens of thousands of positions in recent years. Despite these reductions, all three companies posted eye-popping profits in 2024: $62 billion for Meta, $94 billion for Apple, and $100 billion for Google.
“With all of the homegrown American talent relegated to the sidelines, we find it hard to believe that you cannot find qualified American tech workers to fill these positions,” the senators wrote in their letter, as reported by East Bay Times. The lawmakers demanded answers about the companies’ hiring practices, raising the specter of potential Senate investigations and sworn testimonies from tech executives.
Indian IT firms, who have long been the largest beneficiaries of the H-1B system, are also in the crosshairs. According to Mint, TCS sponsored 5,505 H-1B employees in fiscal year 2025—second only to Amazon—while Cognizant sponsored 2,493. The senators’ letter to TCS CEO K Krithivasan highlighted the company’s plan to lay off over 12,000 employees worldwide, including nearly 60 in Jacksonville, Florida, in August 2025. TCS is currently under investigation by the Equal Employment Opportunity Commission for allegedly firing older American workers in favor of newly hired South-Asian H-1B employees. The letter to Cognizant CEO S Ravi Kumar referenced a 2024 federal jury verdict finding the company had intentionally discriminated against white Americans by favoring South-Asian H-1B workers, behavior that warranted punitive damages.
“TCS is doing itself no favors by replacing Americans with H-1Bs while this investigation is ongoing,” the senators wrote. They pressed both companies to explain why they were hiring H-1B workers while laying off Americans, whether they were hiding H-1B recruitment ads from the general public, and if they paid H-1B and American employees equally. TCS and Cognizant have until October 10, 2025, to respond. Both companies reported robust revenues in 2025: $30.18 billion for TCS and $19.74 billion for Cognizant.
The scrutiny extends beyond individual companies. Senator Tom Cotton has announced plans to introduce two bills aimed at reforming the H-1B program to prioritize American workers, while Senator Bernie Moreno has proposed the HIRE Act, which would increase taxes on companies that offshore work. President Trump’s executive order to raise the H-1B fee is widely seen as targeting alleged misuse of the program, particularly by Indian IT firms, which accounted for 70% of H-1B visas issued in 2024. The Mint report notes that the $283-billion Indian outsourcing sector is feeling especially vulnerable, as regulatory changes and the rise of artificial intelligence threaten to disrupt traditional business models. Investors are already nervous: the combined market capitalization of India’s 10 largest IT services companies fell nearly 8% last week.
The controversy over H-1B visas is not new, but the stakes have rarely been higher. Around 600,000 foreign workers currently hold H-1B visas in the U.S., with 85,000 new visas issued annually by lottery. Critics argue that the program has been abused to replace American workers with lower-paid foreigners. Newly released federal data shows that 83% of H-1B visas issued from 2020 to 2024 went to the two lowest wage levels, which fall below the average pay represented by Level 3. At Level 1—intended for entry-level workers—17,000 visas were issued to people with master’s degrees, raising questions about whether companies are truly using the program to recruit “the best and the brightest.”
Howard University professor Ron Hira, whose research is cited in the federal government’s proposal to change the lottery rules, supports the new policies. He told East Bay Times the changes are “good news for the American economy, for American workers, and for the new H-1B workers that are going to be treated more fairly, that are going to be paid fairly.” Hira argues that companies are using the visa “to fill very ordinary positions,” not just highly specialized roles, and questions why American workers can’t fill those spots.
Not everyone agrees with the administration’s approach. Rufus Jeffris, spokesman for the Bay Area Council (an influential business group), called the new $100,000 fee “very troubling” and warned it could have “serious consequences for our ability to grow and compete.” Stuart Anderson, executive director of the National Foundation for American Policy, sees the policy as an attempt to “break the immigrant-talent pipeline.” Anderson’s group estimates the lottery change would slash the flow of foreign citizens recently graduated from U.S. schools and early-career professionals—talent that, he argues, is essential for innovation and economic growth. He also warns that the changes will deter foreign students from attending U.S. universities, as their chances of working in America after graduation will plummet.
Anderson points to a 2022 study by his organization showing that 55% of U.S. startups valued at $1 billion or more have at least one immigrant founder. He fears the new fee and rules will hamper the creation and growth of new startups. “The U.S. government is basically sending a signal to companies that you’re better off hiring a person abroad and you can avoid all this nonsense,” Anderson said. In other words, the very policies meant to protect American jobs could end up pushing innovation—and the economic benefits it brings—overseas.
With legal battles looming, congressional hearings possible, and the livelihoods of hundreds of thousands of workers in the balance, the future of the H-1B program is anything but certain. What’s clear is that the debate over who gets to build the next generation of American technology—and where they get to do it—has reached a pivotal moment.
