For decades the United States relied on H‑1B visas to bring in highly skilled tech workers, creating talent pipelines between American firms and tech hubs such as Hyderabad — often called “Cyberabad.” A recent Trump administration rule that adds a $100,000 fee for new H‑1B applicants has upended that flow, prompting recruiters and workers to reassess U.S. migration plans.
Recruiters and tech professionals in Hyderabad say the fee makes U.S. moves unrealistic for many and unattractive for employers. Rajesh Jaknalli, who has worked for an American company in Hyderabad for ten years, describes the city as a rich source of engineering talent where many once hoped strong performance would lead to a U.S. transfer.
Hameed Abdul, who expected an Amazon job to be his route to America, called the new charge devastating: “Nobody’s going to hire you and give $100k.” He told reporters he is preparing to migrate to Canada instead. Immigration advisers and prospective migrants report growing interest in Canada, Australia and other countries with more affordable or straightforward skilled‑worker pathways.
Xavier Fernandes, founder of immigration agency Y‑Axis, says the H‑1B system historically supplied steady talent that U.S. companies depended on. “Many CEOs are from Hyderabad,” he noted, arguing some skills are scarce domestically. Data cited from U.S. Citizenship and Immigration Services show a pronounced Indian share among H‑1B holders: over 70% of beneficiaries in 2024 were Indian.
Advocates say foreign talent fuels U.S. innovation — a point even President Trump acknowledged when he said, “You also do have to bring in talent.” Critics warn the steep fee will deter employers and applicants, shrinking the international hiring pool that helped build many U.S. tech successes. A televised exchange — one voice insisting, “We have a country of talented people,” and another replying, “No, you don’t” — highlighted the domestic-versus-foreign talent debate.
The immediate result is a shift in migration patterns: more applications to Canada, Australia and elsewhere; employers choosing to invest locally rather than sponsor moves; and some entrepreneurs saying talent that once would have emigrated to the U.S. may now stay and strengthen home-country tech ecosystems.
Shanelle Kaul, CBS News, Hyderabad.