President Trump’s new $100,000 H-1B visa fee sends shockwaves through the tech industry.
Story Highlights
- Trump’s executive order raises H-1B visa fees to $100,000 annually, impacting tech companies.
- The policy includes a $1 million “gold card” for wealthy immigrants, marking a dual-track approach.
- Major tech firms reportedly support the move, but legal challenges are expected.
- Critics argue the policy could hinder U.S. tech competitiveness and innovation.
Trump’s Executive Order and Its Implications
On September 20, 2025, President Trump signed an executive order imposing a $100,000 annual fee on H-1B visas, significantly increasing the cost from the previous few-thousand-dollar range. This order aims to protect American jobs and ensure that only the “best and brightest” foreign talent can enter the U.S. The new fee is set to take effect for new H-1B applicants starting September 21, 2025.
The policy also introduces a $1 million “gold card” residency program for wealthy individuals, highlighting a dual-track approach to immigration reform. Commerce Secretary Howard Lutnick stated that “all the big companies are on board” with the new measures, suggesting broad industry support despite potential repercussions for the tech sector.
Impact on the Tech Industry
The U.S. tech industry, heavily reliant on H-1B visas to fill specialized roles, faces significant challenges under the new policy. The dramatic increase in costs may result in hiring freezes or delays, particularly affecting startups and smaller tech firms. While the administration frames the move as a protectionist labor measure, critics argue that it could stifle innovation and competitiveness.
The tech industry, despite claimed support, may see shifts in hiring strategies, with companies potentially relocating jobs offshore or turning to automation to compensate for talent shortages.
Reactions and Future Implications
While the administration claims the fee will bolster American job opportunities, industry leaders express concerns about long-term impacts. Ajay Bhutoria, a former Biden advisor, warns of the negative effects on startups and innovation, advocating for targeted exemptions. Meanwhile, the Foundation of India and Indian Diaspora Studies (FIIDS) describes the policy as “very unfortunate” with a “huge negative impact” on tech and STEM talent.
The new fee could drive global tech talent to other countries with more favorable immigration policies, potentially eroding U.S. leadership in innovation. As the policy’s fate may ultimately be decided in the courts, its long-term effects will depend on implementation details, possible exemptions, and industry adaptation.
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Sources:
Tribune: Trump Hits H-1B Visas