When H-1B Costs Rise, L&D Can Help Companies Thrive

Recent policy changes, most notably the introduction of a $100,000 fee for new H-1B visa applications, are already influencing hiring strategies across industries such as software and engineering. For Learning & Development (L&D), this isn’t just a challenge; it’s a chance to lead. When hiring becomes more difficult, training becomes one of the smartest investments a company can make.

What Are the Stakes?

In September 2025, the U.S. introduced a one-time $100,000 fee for new H-1B petitions, significantly raising the cost of bringing in global talent. While renewals and existing visa holders aren’t affected, early data show a nearly 27 percent drop in eligible registrations compared to the previous year.

For many employers, this change effectively doubles the cost of filling critical roles; however, it also creates an opportunity for L&D to shine. By investing in upskilling, knowledge transfer, and local talent development, organizations can leverage this disruption as a catalyst for resilience and growth.

How L&D Can Lead the Way

Close skill gaps quickly: Targeted upskilling, reskilling, and cross-training enable employees to step into roles previously filled by visa-hired workers. With focused bootcamps or stretch assignments, L&D can accelerate readiness and build flexible teams.

Preserve knowledge before it walks out the door: Job shadowing, recorded demos, and well-structured documentation ensure expertise is captured. Pairing visa workers with domestic employees through mentorship creates continuity even during transitions.

Build internal pipelines: Partner with HR to identify high-potential employees and accelerate their growth. Apprenticeships, internships, and leadership development programs help create future specialists and prevent project disruptions.

Harness technology and global collaboration: Leverage virtual tools like Zoom, Teams, and AI-driven platforms to keep global teams aligned and speed up skill acquisition. Blended training approaches bring cost-effective expertise to local staff.

Guide change and strengthen culture: L&D can help employees adapt to new responsibilities with training in resilience, adaptability, and inclusive leadership. By reinforcing purpose and growth opportunities, L&D supports morale and team cohesion.

Show the impact: Executives want proof of value. Tracking metrics like time-to-competency, retention, and project continuity makes it clear that training is not a cost center; it’s a growth driver.

Turning Disruption Into Opportunity

Policy changes like the H-1B fee aren’t just a hiring hurdle; they’re a call to action. Organizations that lean on L&D can reduce risk, strengthen their teams, and protect knowledge, all while building a more agile workforce. This moment underscores a truth that L&D leaders have long recognized: investing in people is the most effective way to foster organizational stability and long-term growth.

When external talent becomes harder to access, internal talent becomes your greatest asset. By moving quickly and strategically, L&D leaders can help organizations not just withstand workforce disruptions but also emerge stronger, smarter, and more competitive.

The next move is yours. By putting L&D at the center of your workforce strategy, you’re not just filling gaps; you’re future-proofing your organization.

Start small if necessary, but begin now. Every investment in your people today builds the resilience and innovation you’ll rely on tomorrow. To explore how Michaels & Associates can support your organization through tailored training solutions, contact us today, and let’s build the future of your workforce together.