Now Reading: IT firms spend $1.1 bn on US STEM as H-1B fees rise
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IT firms spend $1.1 bn on US STEM as H-1B fees rise
Indian IT firms have invested over $1.1 billion in US STEM education and partnerships with more than 130 universities, impacting 2.9 million students, industry body Nasscom said. The spending comes as the US Department of Homeland Security proposes a new $103,265 additional fee for H-1B cap-subject petitions, replacing an earlier $100,000 payment that faced legal challenges.
Nasscom said H-1B employees from Indian companies have fallen sharply over the last decade as firms increased local US hiring. Data from staffing firm Xpheno show total H-1B applications by 18 Indian listed IT firms and Cognizant dropped to 8,160 in 2025 from 36,453 in 2024. USCIS registrations for FY27 fell 38.5% to 211,600, a seven-year low.
Economist Santosh Mehrotra told ANI the fee hike could accelerate the shift of US tech work to India-based Global Capability Centres. The proposal is open for public comments and will take months to finalise. The US has also paused visa appointments globally for consular training on new rules.
Indian Opinion Analysis
Rediff.com and Livemint both lead with Nasscom's defence of the industry's reduced H-1B dependence and $1.1 billion STEM investment, framing the fee hike as a cost burden. Khaleej Times, citing economist Mehrotra, instead foregrounds the acceleration of GCC growth in India as a consequence. Neither side explores whether the fee will deter US-based firms, which hire the majority of H-1B workers. The public comment period and finalisation timeline will determine whether the fee takes effect as proposed.
Coverage: 3 sources, 1 government-critical, 2 neutral
Sources (3): rediff.com (neutral report), livemint.com (neutral report), khaleejtimes.com (government critical)
This brief was synthesised by AI from the 3 sources linked above, so one read covers every framing they carry. Methodology and corrections.
Updated: this story now draws on 3 sources.
