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Prickly US softens H-1B visa demand: Trump stand, more fee and scrutiny lead to 25% drop in FY26 applications

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The number of H-1B visa applications filed for FY26 fell 25% to 358,737 from the year earlier, according to data released by the United States Citizenship and Immigration Services ( USCIS). Those shortlisted declined 27% to 120,141. From among these, a total 85,000 H-1B visas will be issued.

In FY25, total number of applications filed was 479,953, of which 135,137 were shortlisted. The previous year, 780,884 applications were submitted, with 188,400 lakh shortlisted.

FY26 selected registrations, the lowest since FY22, come amid a steep increase in the visa fee and a downturn in that economy that has led to layoffs. US President Donald Trump’s anti-immigration stance and tighter norms are also key factors, experts told ET. Apart from social media accounts being scrutinised, those applying for US work visas are also facing intensified demands for additional documentation, they added.

India is one of the largest beneficiaries of the 85,000 skilled worker H-1B visas the US issues every year, with several American companies, as well as Indian IT firms, sending skilled talent abroad. USCIS opened H-1B registrations for FY26 during March 7-24. Those selected in the lottery will file petitions for the fiscal year.

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Huge Fee Hike
The biggest deterrent has been the cost, which has now been increased to $215, from $10, said Poorvi Chothani, founder and managing partner at 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.” Besides, tech giants such as Microsoft and Meta have shed staff. “All these had an impact on the lower numbers this year,” Chothani said.

In addition, students who don’t have an urgent need to shift to a work visa after their education and stay on in the US, are choosing to leave. “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.” ET reported in April that overseas students in science, technology, engineering and mathematics (STEM) are faced with the threat of having to leave the US within a year of completing studies, after a bill was introduced in the US Congress to eliminate OPT work authorisation. OPT allows them to stay for up to three years after graduation and find a job. The Trump administration has been trying to fulfil the president’s election pledge with an anti-immigration crackdown that includes mass deportations. These have intensified measures that began during his first term in office.

Even minor infractions such as jaywalking are being captured, making it a challenge for immigrants, said Gnanamookan Senthurjothi, founder of The Visa Code, a US immigration firm.

In addition, the visa process itself has been challenging in recent times.

Social Media Scrutiny
Senthurjothi said social media verification has become stringent from early this year,. There have been rising instances of requests for evidence (RFEs) and additional documentation requests. “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. Of the 85,000 H-1B visas issued every year, 20,000 are for advanced degree holders.

“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.”
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