H-1B Visa Paradox: A Hidden Lifeline for Laid-Off Indian Tech Workers in the US?

The shock announcement of a $100,000 H-1B visa fee for new applicants under Donald Trump’s administration has sent ripples through the US tech industry. But for thousands of Indian professionals already

in the United States on valid H-1B status, the move may unexpectedly work in their favor.Why the Visa Fee Hike May Help Laid-Off WorkersFor laid-off H-1B holders, the new rule could tilt employer preferences in their direction. Since current H-1B workers, transfers, renewals, and re-entries remain exempt from the $100,000 fee, companies can save time and money by rehiring professionals already in the system.“Because they already hold H-1B status, they can often transition through a transfer petition without re-entering the lottery, making them highly attractive in terms of speed and cost efficiency,” said Sachin Alug, CEO of recruitment firm NLB Services, in an ET report.The Scale of Layoffs in TechAccording to Trueup data cited by ET, the US tech sector has witnessed 533 rounds of layoffs in 2025 alone, affecting nearly 145,000 professionals. In 2024, the number was even higher, with over 238,000 employees impacted across 1,115 rounds.For H-1B holders, this means a 60-day grace period to find new employment or leave the country—a critical window that employers may now view as an opportunity.“A Call Back Might Happen”Navneet S Chugh, attorney at US -based immigration law firm Chugh LLC, told ET that some of the laid-off professionals might even get “a call back” from their previous or competing employers, thanks to the cost savings tied to rehiring existing visa holders.A laid-off product manager in Mountain View shared with ET, “The moment I heard the news, I thought my days in the US were officially over. But after the clarification, there is renewed hope. I am aggressively applying and expecting calls over the next week.”Big Tech vs. Small EmployersExperts note that tech giants like Amazon, Google, Microsoft, and Meta may benefit most from the visa hike, as they have the financial strength to absorb higher costs. Smaller IT services companies and lower-wage employers, who file nearly 40–60% of H-1B applications, are likely to feel the brunt.Debarghya Das, partner at Menlo Ventures, highlighted that even for giants like Microsoft, the new fees won’t be a major deterrent.“Microsoft had less than 2,000 net new H-1B hires last year. Even at $100,000 per visa, that’s just $200 million—a mere 0.6% of its $30 billion R&D budget.”Silver Lining for Skilled ProfessionalsRecruiters say that laid-off H-1B workers are now part of a “ready-to-deploy” talent pool for high-demand areas like software engineering, cloud services, AI, and digital transformation roles.According to Sanketh Chengappa KG of Adecco India, many will likely receive attractive offers from alternative organizations in the US , particularly as the demand for digital skills grows.Blessing in Disguise?While Trump’s visa policy shift has sparked anger among aspiring applicants overseas, the decision might serve as a blessing in disguise for thousands of highly skilled Indian workers already inside America. With a sharp rise in fees dissuading new entrants, laid-off H-1B professionals may find themselves back in demand—offering a glimmer of hope during uncertain times.