H-1B fees hit the financial industry with JPMorgan Chase (JPM.US) bearing the brunt
The Zhitong Finance App learned that the Trump administration's reform of the H-1B visa system may have a huge impact on the financial industry. The $100,000 fee levied by the new regulations could make the industry face recruitment challenges.
Financial companies are one of the largest users of H-1B work visas. This type of visa is distributed through an annual lottery, but its usage is far lower than that of technology companies. According to government data, the top ten US financial companies obtained about 12,000 H-1B visas in 2025, of which J.P. Morgan topped the list with 2,440 visas.
An analyst says banks will be less able to withstand increased costs than tech companies. David Wagner, head of equity business at Aptus Capital Advisors, which holds shares in major US banks, said, “Banks face the biggest obstacle when facing new H-1B visas because many technology companies report record profitability, making them more able to withstand this one-time cost.”
Technology companies' profits can cushion the impact of H-1B expenses
A review by financial headhunting company Prospect Rock Partners indicates that a large number of H-1B visa holders hold engineering and technical positions and are engaged in core business in the banking and financial industry, with investment banking being particularly affected. The agency said these employees are responsible for developing quantitative models, algorithmic trading, risk management systems, and software.
Meredith Dennis, managing partner at Prospect Rock Partners, said the new H-1B visa would cost $100,000, which would make hiring a junior analyst or technician prohibitively expensive. “H-1B visas make it almost impossible to recruit entry-level jobs,” Dennis said.
Tim O'Brien, managing director of Morningstar DBRS North American Financial Institutions Ratings, said that if the required skills are difficult to find in the US, the new fee standards may force banks to recruit more overseas employees.
O'Brien said, “An interesting unintended consequence may be that some global experts will end up in jurisdictions other than the US, such as Canada. Some banks may also move some technical functions overseas.”
J.P. Morgan CEO Jamie Dimon said in an interview that the bank would discuss the matter with policy makers and that Trump's announcement “caught everyone off guard”. Other than Dimon's remarks, J.P. Morgan declined to comment. Other major Wall Street banks and credit card companies and consulting firms using H-1B visas declined to comment or did not respond to requests for comment.
Trump's proposal to reform H-1B visas is aimed at favoring highly skilled, well-paid workers. Officials say the visa allows companies to lower wages, while restrictions will provide more employment opportunities for US tech workers.
Company explores visa alternatives
Partners in one of four major audit consulting firms provide mergers and acquisitions advice to the company's clients. He said professional services firms will have to evaluate the proportion of employees using various visa programs and how to replace them after their visas expire.
He said his company will definitely see an impact on its own business and future recruitment plans, particularly in terms of the cost base for junior employees often recruited from universities. The average salary of these H-1B employees indicates that the new $100,000 fee will significantly increase the cost of hiring them.
According to government data, the average income of 2440 employees with H-1B visas at J.P. Morgan Chase this year was $160,567. The average salary for H-1B visa holders recently approved by Goldman Sachs is $126,495, and Deloitte's is $139,704.
The government said that visas are generally valid for three to six years, and the $100,000 fee is a one-time fee that does not apply to renewal.
Other alternatives would be to use different visa categories and speed up the guarantee of green cards, Dennis said. “Employers need to assess costs and their impact on US talent channels and consider alternative visa options and workforce strategies,” said Boo Cooper, a partner at Fragomen, an immigration consulting firm that advises companies and banks.