New H1-B Fees: Big Bark and Little Bite

Two months after the Trump administration imposed a $100,000 fee on new H-1B visa petitions, nearshore service providers say the market response may have brought an increase in interest, but has not yet translated to sales.

That news comes after offshore companies swept into action following the Sept. 19 announcement, launching marketing pages targeted toward smaller businesses looking to avoid or save money on the new H1-B fees.

Two business leaders in the nearshoring space say interest in Latin America appears to be growing following the announcement, but companies are still evaluating what the true effects of the policy change will be.

The change represents one of the most sweeping changes to skilled-worker immigration in years. It applies to new H-1B petitions filed for beneficiaries outside the United States or those who require consular processing. Petitions for workers already in the country — including extensions, amendments and changes of status — are exempt, according to follow-up guidance from U.S. Citizenship and Immigration Services published in October.

The dramatic increase in cost immediately drew national attention and industry pushback.

Reuters reported that Indian IT associations warned of potential “major disruption” to U.S. operations, while the Associated Press detailed multiple lawsuits seeking to block or halt the fee. Economists quoted by The Guardian said the policy could slow U.S. innovation by pushing talent and investment offshore.

Immigration law firms and HR advisory groups warned the change would force employers to rethink recruitment strategies heading into 2026.

Against that backdrop, a shift in the nearshore market seemed almost inevitable. But so far, the movement has been slower and more measured than many anticipated.

Peter Schawacker, CEO of Nearshore Cyber, said his firm has not seen a clear change in sales volume since the fee took effect.

“I haven’t seen any change in sales volume or otherwise,” he said. “What I did see was a mad dash by R1 visa holders. But that seemed to subside after the White House modifed the policy around those currently in the US.”

Schawacker said the earliest reaction he observed came from workers in other visa categories who scrambled to understand whether the policy might effect them. That anxiety eased once the White House clarified that the fee would not apply to individuals already in the United States.

He added that his market segment may be insulated from broader trends. “I operate in Mexico and APAC, mainly, and my focus is on cybersecurity talent,” he said. “So my being ‘nichey’ could very well skew my perspective.”

Steve Taplin, CEO of Sonatafy Technology, said his team has experienced a noticeable rise in exploratory conversations since September.

“We do expect the new $100,000 fee on new H-1B petitions to be a net positive for nearshore demand over the next 12 months,” he said.

“That said, in the immediate months after the announcement, we have not seen a sudden, dramatic spike that I would call a surge,” Taplin said. “What we have seen is a clear uptick in early-stage conversations, with more companies asking about pricing, availability and time to start, but many of those buyers are still in evaluation mode.”

Taplin said uncertainty surrounding the policy rollout has contributed to the cautious pace.
“Timing matters here. Since September, the policy has already come with clarifications, carve-outs and active legal challenges. That naturally makes buyers cautious about committing to a new delivery model overnight,” he said. “In other words, many leaders are waiting to see whether the rule holds as written, or shifts again, before they overhaul hiring strategy.”

Taplin echoed sentiment that was shared globally in the immediate aftermath of the fee announcement — that large players would likely have no trouble absorbing the fees while smaller operations could feel handcuffed.

“Large enterprises can absorb a major fee if they choose to, but for a two hundred to one thousand person tech organization, that cost changes the math quickly,” Taplin said. “We are seeing more inquiries from that segment, especially for roles where speed and continuity matter and they cannot afford a long visa cycle plus a six-figure toll.”

Looking ahead, Taplin expects demand to accelerate if the fee remains in place through next spring.

“My expectation, assuming enforcement remains in place through the March 2026 lottery cycle, is a more visible surge as 2026 planning gets finalized and budgets shift from onshore hiring attempts toward nearshore delivery,” he said. “Nearshore is not just a way around a fee, it is a practical way to reduce risk when immigration policy remains a moving target.”