Walmart has paused the hiring of foreign workers who require H-1B visas to work in the United States, according to a person familiar with the decision — a move seen as part of corporate adjustments to President Donald Trump’s new immigration policy, which significantly raises costs for employers that hire skilled foreign workers.

The decision follows Trump’s September announcement of a new $100,000 fee per H-1B visa application, a sharp increase from the previous cost structure. The administration said the measure was designed to protect U.S. jobs and curb alleged visa program abuses by large corporations, many of which have relied on H-1B workers from countries such as India and China, particularly in technology roles.

In a statement, Walmart said it remains committed to recruiting top talent but acknowledged the need for caution under the new policy environment.

“Walmart is committed to hiring and investing in the best talent to serve our customers while remaining thoughtful about our H-1B hiring approach,” a company spokesperson said.

While Walmart’s hiring pause will apply broadly, exceptions may be made in some cases, according to the person familiar with the matter quoted by CNBC.

The H-1B visa program allows U.S. companies to employ skilled workers in specialized fields such as technology, engineering, and finance. But the Trump administration’s sharp fee increase has drawn concern across corporate America, with business groups warning it could weaken the country’s competitive edge in attracting global talent.

The U.S. Chamber of Commerce has already filed a lawsuit challenging the new rule. In a statement, Neil Bradley, the Chamber’s Chief Policy Officer, said the steep fee hike “will make it cost-prohibitive for U.S. employers, especially start-ups and small and midsize businesses, to utilize the H-1B program, which was created by Congress expressly to ensure that American businesses of all sizes can access the global talent they need to grow their operations here in the U.S.”

Walmart’s Global Workforce Strategy Under Strain

Walmart remains the largest private employer in the United States, with about 1.6 million employees, most of whom work in retail stores and distribution centers. The H-1B program affects only a small portion of its workforce — primarily its corporate and technology employees based in Bentonville, Arkansas, and major tech hubs like the San Francisco Bay Area.

As of June 30, Walmart employed 2,390 H-1B visa holders, ranking it ninth among U.S. employers using the program, according to federal data. By comparison, Microsoft topped the list with 5,189 visa holders, followed closely by Meta, the parent company of Facebook.

Still, analysts say the move could slow Walmart’s progress in areas where it competes for top-tier digital and data science talent — particularly as it invests heavily in AI-driven retail logistics, e-commerce systems, and cloud integration to rival Amazon’s technological edge.

Rising Corporate Unease

Walmart’s cautious stance mirrors a broader sentiment among large U.S. companies now grappling with uncertainty over immigration policy and rising compliance costs. While the administration insists the fee increase protects domestic jobs, critics argue it risks deterring innovation and pushing more companies to offshore technical operations to lower-cost markets.

Some immigration experts note that firms like Walmart — which have been expanding their global tech centers in India and Mexico — may respond by outsourcing more digital roles overseas if U.S. visa policies remain restrictive. It is believed that the U.S. risks pricing itself out of the global tech labor market, with companies that can’t bring the skills to the country simply moving the work elsewhere.

The U.S. Chamber’s lawsuit against the government, filed earlier this month, is expected to set the tone for what could become a major legal battle over the Trump administration’s approach to skilled immigration. Business groups argue that the $100,000 visa fee goes beyond the administration’s statutory authority, while administration officials maintain it is necessary to ensure fairness to U.S. workers.

For Walmart, the policy’s financial and administrative implications are clear enough to warrant an immediate pause. But whether that pause turns into a longer-term hiring freeze may depend on the outcome of ongoing legal challenges — and on whether the administration shows flexibility in enforcing the new rule.