Tech Industry Reacts to New $100,000 H-1B Visa Fee

President Donald Trump has signed an executive order imposing a $100,000 fee on H-1B visa applications, a move that has raised concerns within the technology sector. The H-1B program allows U.S. employers to hire foreign workers in specialty occupations, particularly in fields like technology and engineering.

Commerce Secretary Howard Lutnick emphasized the administration's intent to prioritize American workers, stating, "Train Americans. Stop bringing in people to take our jobs."

Industry leaders and analysts have expressed apprehension about the potential consequences of the fee increase. Stuart Anderson, executive director of the National Foundation for American Policy, noted that more than half of billion-dollar startups have at least one immigrant co-founder, highlighting the significant role of foreign talent in driving innovation and job creation in the U.S.

The H-1B visa program, established in 1990, permits U.S. employers to hire foreign professionals in specialized fields. The program has an annual cap of 65,000 visas for applicants with bachelor's degrees and an additional 20,000 for those with advanced degrees. Academic institutions are exempt from this cap.

Critics argue that the substantial fee increase could deter highly skilled foreign workers from choosing the U.S. as their destination, potentially leading companies to expand operations internationally to access necessary talent. Jeremy Robbins, executive director of the American Immigration Council, warned that such measures might incentivize companies to set up operations overseas, undermining efforts to strengthen America's tech industry.

The executive order took effect on September 21, 2025, and is set to last for one year, with the possibility of extension. The administration has indicated that exceptions may be granted on a case-by-case basis if deemed in the national interest, though specific criteria for these exemptions have yet to be defined.

As the tech industry grapples with the implications of this policy change, stakeholders are closely monitoring potential legal challenges and considering adjustments to their hiring and operational strategies to navigate the evolving landscape.