TLDRs;
- Trump proposes $100,000 annual fee per H-1B worker, sparking backlash across the U.S. tech and business sectors.
- Tech giants like Amazon and Microsoft warn employees as visa policy uncertainty disrupts hiring strategies.
- Startups and investors caution the fee could cripple innovation, pushing talent abroad to London, Toronto, or Vancouver.
- Legal challenges expected, as immigration experts argue the order bypassed Congress and standard rulemaking procedures.
The Trump administration has ignited intense debate across the U.S. technology and business landscape with its proposal to drastically raise fees for hiring foreign workers under the H-1B visa program.
The policy, announced in a recent executive order, would require companies to pay US$100,000 annually per H-1B worker, a dramatic jump from the current few-thousand-dollar application fees.
The H-1B program, widely used in Silicon Valley and beyond, allows U.S. employers to bring in foreign professionals for specialized roles in software engineering, data science, and other technical fields. Companies such as Amazon, Microsoft, Google, and Apple have been among the top users of the program, relying on global talent to fill skill gaps in the domestic labor market.
Tech giants react cautiously
Following the announcement, internal memos circulated at Amazon, Microsoft, and JP Morgan, urging employees on H-1B visas to limit international travel and, in some cases, return to the United States immediately. The guidance reflects growing uncertainty over how and when the new fee structure will be implemented.
While large corporations may have the financial resources to absorb the added expense, analysts say the change could still disrupt long-term hiring strategies.
Shares of outsourcing and IT service firms Cognizant, Infosys, and Wipro slipped following the announcement, underscoring investor concern about the ripple effects on global staffing models.
Startups see bigger challenges
If tech giants are bracing for turbulence, startups may face a crisis. Entrepreneurs and venture capitalists warn the steep fees could make hiring top-tier global talent impossible for smaller firms with limited cash.
“Now we’re making H-1B sponsorship prohibitively expensive,” wrote Manny Medina, co-founder of Outreach, in a LinkedIn post.
Medina, who recently relocated to London, said global cities such as Toronto, Vancouver, and London would quickly benefit from the talent exodus.
Y Combinator CEO Garry Tan echoed the concern, noting that early-stage companies with small teams and narrow budgets “can’t swallow that tax.” Critics say the measure risks undercutting U.S. leadership in innovation at a time when competition for skilled workers is intensifying worldwide.
India and China most affected
According to U.S. government data, India accounted for 71% of H-1B visa beneficiaries last year, while China represented nearly 12%. The Seattle area, home to large operations for both Microsoft and Amazon, also has one of the nation’s largest Indian immigrant communities, making it particularly vulnerable to policy shifts.
Immigration experts warn that the proposal could have a chilling effect on international students and professionals who once saw the U.S. as the premier destination for career growth.
“The United States has built its dominance in tech by attracting the world’s brightest minds,” said Xiao Wang, CEO of Boundless, an immigration startup. “Policies like this put that advantage at risk.”
