New $100,000 Fee on H-1B Visas Raises Concerns Among U.S. Employers

President Donald Trump has signed an executive order imposing a $100,000 fee on applications for H-1B visas, which are used to hire skilled foreign workers. The administration states that this measure aims to curb the program's overuse and encourage the hiring of American workers. Commerce Secretary Howard Lutnick remarked during the signing, "No more will these tech companies train foreign workers. If you're going to train someone, you're going to train one of our recent graduates."

The H-1B program is widely utilized by major technology companies. For instance, Amazon secured over 10,000 H-1B visas in the first half of 2025, while Microsoft, Meta, Apple, and Google each obtained more than 4,000.

Smaller firms and startups express concern that the substantial fee could hinder their ability to hire necessary talent. John Skrentny, a professor at the University of California, San Diego, noted, "If you're a startup with new technology, and you've got some venture capital money but you're worried about burning through it too quickly, this could kill you."

Beyond the tech industry, sectors like education and healthcare, which also rely on H-1B workers, are evaluating the potential impact. Karen Brady, CEO of Ryther, a behavioral health nonprofit in Seattle, stated, "There's no way that we can afford $100,000. In terms of future hiring, we won't be doing any more H-1B visas."

Economists warn that the fee could lead to a "brain drain" and slower economic growth. Atakan Bakiskan, an economist at Berenberg, adjusted his U.S. growth estimate from 2% to 1.5%, citing the fee as part of broader "anti-growth policymaking."

While some, like Netflix co-founder Reed Hastings, have praised the fee as a "great solution," others argue it may prompt companies to offshore operations. Dan Wang, a professor at Columbia Business School, commented, "These policies really don't have the intended effect of balancing the labor market competitiveness of American workers. There's not a trace of data that suggests that American workers would benefit from this."

The executive order also directs the Department of Labor to revise prevailing wage levels for the H-1B program and instructs the Department of Homeland Security to prioritize applications for higher-paid workers.