When President Trump recently ordered a hefty $100,000 fee for H-1B visa applications, many skilled workers felt anxious. Abhishek Singh, a software engineering manager in Seattle, knew his startup couldn’t cover that cost. After a bit of clarification from the White House, the fee only applies to new applicants—at least for now.
While it seems like good news for current visa holders, the broader implications are worrying. This fee could stifle innovation and growth, especially for startups. According to John Skrentny, a professor at the University of California, San Diego, smaller firms may struggle with the added financial burden. “Not every company can spend $100,000 on a visa,” he noted.
The H-1B program mainly benefits big tech companies, with Amazon leading the pack. In the first half of 2025, Amazon received over 10,000 H-1B approvals. Microsoft, Meta, Apple, and Google also secured thousands of these visas. However, the larger issue lies in how these changes impact smaller companies and other sectors, like education and healthcare.
Karen Brady, CEO of Ryther, a nonprofit focused on behavioral health, expressed deep concerns: “There’s no way we can afford $100,000. We won’t be able to hire H-1B workers in the future.” This is particularly troubling as the healthcare sector struggles with a workforce shortage. Brady’s organization relies on foreign employees who possess essential cultural and linguistic skills that American workers may lack.
Amidst these changes, some experts worry about the long-term effects on the US economy. Economist Atakan Bakiskan from Berenberg recently revised his growth forecast down from 2% to 1.5%. “The labour force is more likely to shrink than expand going forward,” he warned.
Though the Trump administration argues the fee is a response to abuses within the H-1B program, critics like political science professor Dan Wang argue it may drive companies to relocate overseas instead of hiring domestic talent. Law expert Elise Fialkowski highlighted that some large firms are now considering hiring in countries like Canada and the UK due to these new restrictions.
Singh is also contemplating his options outside the US, feeling the weight of uncertainty. “There’s uncertainty now that anything can happen in the future,” he said. For many skilled workers, this environment creates fear and unpredictability, pushing them closer to considering opportunities abroad.
The H-1B fee policy could change the landscape for those seeking work in the US. As we watch these developments unfold, it’s clear that finding a balance between protecting domestic jobs and attracting global talent is more crucial than ever.
For more insights on immigration policy and its impacts, check out resources like the Economic Policy Institute, which weighs in on labor and immigration issues.
