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$100K Fee on H-1B Visas: Tech, finance, academia Companies and Their Fate
Trump Slaps $100K Fee on H-1B Visas: What It Means for Tech, Workers, and U.S. Jobs
When President Donald Trump announced new travel restrictions for H-1B visa holders on Friday, September 19, the ripple effect was immediate. His administration unveiled a $100,000 entry fee for new H-1B visas, sending shockwaves through the tech industry, immigration advocates, and global skilled workers who see the U.S. as the ultimate destination for opportunity.
For companies relying heavily on H-1B employees, the weekend turned into a scramble to figure out what this would mean for ongoing projects, renewals, and new hires. While the White House downplayed fears of disruption, the reality is clear: businesses, particularly in the STEM-heavy tech sector, will now need to make crucial decisions about their hiring strategies and long-term workforce planning.
ALSO READ: Trump Imposes $100K Fee on H-1B Visas and Launches “Gold Card”
Who Uses H-1B Visas The Most
The H-1B visa program has long been America’s gateway for highly skilled workers in fields like technology, engineering, finance, and academia. It’s valid for three years, renewable for another three, and capped at 80,000 new visas per year. But here’s the kicker: according to U.S. Citizenship and Immigration Services (USCIS), around 400,000 H-1B visas were active in 2024, a number that includes renewals and beneficiaries already living and working in the U.S. That may sound like a lot, but when you compare it to America’s 171 million-strong workforce, it’s less than 1%.
Top Countries Supplying H-1B Visa Holders (2024)
| Country | % of H-1B Holders |
|---|---|
| 🇮🇳 India | 70%+ |
| 🇨🇳 China | 12% |
| 🇵🇭 Philippines | ~3% |
| 🇨🇦 Canada | ~3% |
| All Others | 12% combined |
So who’s driving these numbers?
- India dominates the charts, with over 70% of all H-1B holders.
- China comes second at around 12%.
- The Philippines and Canada follow distantly, each representing only about a quarter of China’s figures.
- All other countries combined account for just 12%.
The largest beneficiaries are STEM-based companies, tech giants, universities, and research institutions. Over 100,000 H-1B workers are employed in these areas alone, with another 117,000 spread across manufacturing, finance, information, and education combined.
According to Politico, President Trump defended the hefty new fee by claiming that companies exploit H-1B visas to hire cheaper foreign labor, undermining American workers. But here’s where the data gets interesting. The Wall Street Journal found that H-1B beneficiaries in 2024 earned a median salary of $120,000, nearly double the U.S. workforce’s median pay. That’s hardly “cheap labor.” Instead, these workers often bring niche expertise that fills gaps U.S. companies struggle to address locally.
In fact, multiple studies have shown that H-1B workers boost productivity and create new opportunities for the workforce as a whole. By driving innovation, they help businesses scale, which in turn generates more jobs for Americans.
Not everyone is unhappy with Trump’s move. Some tech leaders see the new $100,000 fee as a way to clean up the lottery system, which often leaves companies at the mercy of luck rather than need. Take Parker Conrad, CEO of Rippling, for example. His company requested 65 H-1B visas last year but received only 12. His reaction? “I would gladly pay $100,000 if it meant I was guaranteed to get the visa,” Conrad told the WSJ.
For larger tech firms and multinationals like Tata and Cognizant, the fee may simply become another cost of doing business. These companies employ thousands of H-1B workers and can absorb the financial hit. But for startups and smaller firms, the policy could be crippling. Many depend on foreign engineers, developers, and researchers but lack the financial firepower to shell out $100,000 per visa. For them, the fee could create a two-tier system where only the wealthiest companies can afford to hire global talent.
What This Means for American Workers
So, will American workers benefit? It depends on who you ask.
- Supporters of the fee argue that it will push companies to hire more domestic talent, especially in IT and software fields, giving young U.S. graduates better chances.
- Critics counter that it will slow innovation, drive skilled workers to competitor nations like Canada, the UK, and Australia, and make the U.S. less attractive as a hub for global talent.
The truth probably lies somewhere in the middle. While recent graduates may gain short-term opportunities, the long-term competitiveness of U.S. industries could suffer if companies can’t attract the best and brightest from around the world.
Trump’s $100K visa fee is not just about immigration, it’s about reshaping the global image of American opportunity. For decades, the U.S. has thrived on being a magnet for ambitious, highly skilled talent from around the globe. That influx has powered innovation in Silicon Valley, academia, finance, and beyond. But now, with fees this steep, some of that talent may look elsewhere. Countries like Canada are already rolling out red carpets with friendlier immigration policies, hoping to lure away the engineers and researchers that once flocked to the U.S.
In the end, the question becomes: is America pricing itself out of the global talent market?
The new H-1B visa fee may empower some American graduates and please certain CEOs, but it risks creating a divide between companies that can pay to play and those that can’t. And for foreign talent, the once-bright beacon of opportunity in the U.S. may be dimming.
