Further compounding the issue are regulatory and procedural changes to the H-1B registration process
The H-1B visa applications for FY26 have fallen by 25 per cent year on year (y-o-y), the lowest since FY22, according to data from the United States Citizenship and Immigration Services (USCIS). A total of 358,737 applications were received this year—down from over 480,000 last year—making it the lowest since FY22, which saw 308,613 applications.
The H-1B visa, long touted as a critical gateway for Indian IT professionals and tech talent globally, is witnessing a decline in demand.
Industry analysts attribute the decline to a combination of factors, including: stricter US immigration policies which include the newly introduced “Catch-and-Revoke” policy, which mandates immediate visa cancellation for any foreign national (including those on H-1B, student visas, or other categories) found to have violated any US law even once; a significant hike in visa registration fees; the Trump administration’s “America First” and MAGA (Make America Great Again) agenda; and widespread workforce downsizing by global tech giants like Microsoft, Amazon, and Google.
During Trump’s previous tenure, denial rates for H-1B petitions rose sharply due to stricter eligibility criteria, increased site visits, and additional documentation requirements, said Neeti Sharma, CEO, TeamLease Digital. Even post his presidency tenure, the lingering effects of these policies, along with the anticipation of a possible return to similar measures, have contributed to ongoing uncertainty. This has made companies wary of investing time and resources in H-1B applications that may face higher chances of rejection or delays, she explained.
Further compounding the issue are regulatory and procedural changes to the H-1B registration process.
In January, USCIS increased the H-1B visa registration fee from $10 to $215, a move that would impact startups and small firms, which are now more cautious in nominating candidates, shared Mamta Shekhawat, Founder of Gradding.com, a study abroad platform. Moreover, the shift to beneficiary-driven selection- where each candidate is counted only once regardless of the number of employers petitioning, has effectively curbed duplicate applications and attempts to game the lottery system, she added.
The broader slowdown in the IT sector is another major factor. Many tech giants implemented significant staff reductions through FY24 and FY25, impacting hiring pipelines. “As companies tighten budgets, many are prioritising local hiring and internal mobility over international recruitment,” said Sharma. “Employers are being more cautious in their hiring practices, especially when it comes to foreign workers.”
Additionally, the rising costs and regulatory complexity of sponsoring H-1B visas have prompted companies to be more selective. As a result, applications are increasingly being filed only for highly specialised roles or project-based needs.
Further, the shift to remote work has lessened the immediate need for on-site international talent, says Varun Singh, MD, XIPHIAS Immigration.
While the current trend shows a decline, the demand for skilled foreign workers remains high. For FY2026, USCIS received over 343,000 eligible H-1B registrations against a cap of 85,000, indicating sustained interest, shared Singh.
However, Sharma noted that the impact of restrictive policies is not limited to H-1B visas. Similar trends are being observed across other work visa categories. “The L-1 and O-1 programs continue to see slower demand due to compliance challenges and cost considerations. Student visas (F-1) remain stable, but changes to related programs like OPT and H-4 EAD are being closely monitored,” she said. Overall, companies are cautious across all work visa categories, with hiring largely focused on immediate needs rather than long-term projections.
Looking ahead, the outlook for H-1B visa applications remains uncertain. Sharma cautioned that the downward trend could continue if restrictive policies remain in place.
“If the economic climate improves and there’s a shift toward more open immigration policies, we could see a rebound in H-1B applications,” she said.
(Reporting by BL Intern Rohan Das)
Published on May 20, 2025
Further compounding the issue are regulatory and procedural changes to the H-1B registration process
The H-1B visa applications for FY26 have fallen by 25 per cent year on year (y-o-y), the lowest since FY22, according to data from the United States Citizenship and Immigration Services (USCIS). A total of 358,737 applications were received this year—down from over 480,000 last year—making it the lowest since FY22, which saw 308,613 applications.
The H-1B visa, long touted as a critical gateway for Indian IT professionals and tech talent globally, is witnessing a decline in demand.
Industry analysts attribute the decline to a combination of factors, including: stricter US immigration policies which include the newly introduced “Catch-and-Revoke” policy, which mandates immediate visa cancellation for any foreign national (including those on H-1B, student visas, or other categories) found to have violated any US law even once; a significant hike in visa registration fees; the Trump administration’s “America First” and MAGA (Make America Great Again) agenda; and widespread workforce downsizing by global tech giants like Microsoft, Amazon, and Google.
During Trump’s previous tenure, denial rates for H-1B petitions rose sharply due to stricter eligibility criteria, increased site visits, and additional documentation requirements, said Neeti Sharma, CEO, TeamLease Digital. Even post his presidency tenure, the lingering effects of these policies, along with the anticipation of a possible return to similar measures, have contributed to ongoing uncertainty. This has made companies wary of investing time and resources in H-1B applications that may face higher chances of rejection or delays, she explained.
Further compounding the issue are regulatory and procedural changes to the H-1B registration process.
In January, USCIS increased the H-1B visa registration fee from $10 to $215, a move that would impact startups and small firms, which are now more cautious in nominating candidates, shared Mamta Shekhawat, Founder of Gradding.com, a study abroad platform. Moreover, the shift to beneficiary-driven selection- where each candidate is counted only once regardless of the number of employers petitioning, has effectively curbed duplicate applications and attempts to game the lottery system, she added.
The broader slowdown in the IT sector is another major factor. Many tech giants implemented significant staff reductions through FY24 and FY25, impacting hiring pipelines. “As companies tighten budgets, many are prioritising local hiring and internal mobility over international recruitment,” said Sharma. “Employers are being more cautious in their hiring practices, especially when it comes to foreign workers.”
Additionally, the rising costs and regulatory complexity of sponsoring H-1B visas have prompted companies to be more selective. As a result, applications are increasingly being filed only for highly specialised roles or project-based needs.
Further, the shift to remote work has lessened the immediate need for on-site international talent, says Varun Singh, MD, XIPHIAS Immigration.
While the current trend shows a decline, the demand for skilled foreign workers remains high. For FY2026, USCIS received over 343,000 eligible H-1B registrations against a cap of 85,000, indicating sustained interest, shared Singh.
However, Sharma noted that the impact of restrictive policies is not limited to H-1B visas. Similar trends are being observed across other work visa categories. “The L-1 and O-1 programs continue to see slower demand due to compliance challenges and cost considerations. Student visas (F-1) remain stable, but changes to related programs like OPT and H-4 EAD are being closely monitored,” she said. Overall, companies are cautious across all work visa categories, with hiring largely focused on immediate needs rather than long-term projections.
Looking ahead, the outlook for H-1B visa applications remains uncertain. Sharma cautioned that the downward trend could continue if restrictive policies remain in place.
“If the economic climate improves and there’s a shift toward more open immigration policies, we could see a rebound in H-1B applications,” she said.
(Reporting by BL Intern Rohan Das)
Published on May 20, 2025
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It is a long established fact that a reader will be distracted by the readable content of a page when looking at its layout. The point of using Lorem Ipsum is that it has a more-or-less normal distribution of letters, as opposed to using ‘Content here, content here’, making it look like readable English. Many desktop publishing packages and web page editors now use Lorem Ipsum as their default model text, and a search for ‘lorem ipsum’ will uncover many web sites still in their infancy.
The point of using Lorem Ipsum is that it has a more-or-less normal distribution of letters, as opposed to using ‘Content here, content here’, making
The point of using Lorem Ipsum is that it has a more-or-less normal distribution of letters, as opposed to using ‘Content here, content here’, making it look like readable English. Many desktop publishing packages and web page editors now use Lorem Ipsum as their default model text, and a search for ‘lorem ipsum’ will uncover many web sites still in their infancy.
It is a long established fact that a reader will be distracted by the readable content of a page when looking at its layout. The point of using Lorem Ipsum is that it has a more-or-less normal distribution
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