Small firms scramble as H-1B visa fee rises to $100,000
A six-figure levy on new H-1B applications could strain startups, nonprofits and sectors such as education and healthcare already grappling with skilled-work shortages.
WASHINGTON — President Donald Trump signed an executive order that would set a $100,000 fee for new H-1B visa applications, a change that could disrupt hiring by startups and other employers that rely on skilled foreign workers. The White House on Saturday clarified that the higher fee applies to future applicants only for now, offering a temporary reprieve for those already in the pipeline or on current visas.
The H-1B program, which issues roughly 85,000 visas each year, has been a linchpin for the US tech sector and beyond. In the first half of 2025, industry data show Amazon led with more than 10,000 approved H-1B visas, while Microsoft, Meta, Apple and Google each secured more than 4,000. While about 30 employers—primarily large technology firms—account for a large share of the visas, startups and smaller firms also rely on H-1B workers to fill roles in software development, healthcare, education and other fields. The policy change could reverberate through sectors that have long depended on foreign expertise as they navigate a competitive domestic labor market.
For smaller firms with limited capital, a six-figure filing fee could be crippling. “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,” said John Skrentny, a University of California, San Diego professor who studies STEM workforce development. Beyond tech, industries such as education and healthcare—also substantial users of H-1B visas—face the potential of reduced access to skilled workers. Karen Brady, chief executive of Ryther, a Seattle behavioral health nonprofit, put the impact plainly: “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.” Ryther, based in Seattle, employs two therapists on H-1B visas, out of a 45-person workforce; both are from China. Brady said the foreign-language and cultural expertise these staff bring are critical for serving families from similar backgrounds, a point she said would be hard to replace.
Analysts cautioned that the policy could slow overall growth. In a research note, Atakan Bakiskan of the investment bank Berenberg lowered his estimate for US growth this year to 1.5%, citing the H-1B fee as part of a broader anti-growth policy framework. “With the new H-1B policy, the labor force is more likely to shrink than expand going forward,” Bakiskan wrote, adding that a brain drain could weigh heavily on productivity.
Support for the change has come from some corners of the policy and tech worlds. In his executive order, Trump argued the higher fee would curb abuse of the program and said the administration is pursuing a broader overhaul that would prioritize applications for higher-paid workers. Some advocates contend that companies should be able to absorb the cost if it reflects the value of specialized talent. Netflix co-founder Reed Hastings welcomed the move as a “great solution,” while proponents also argued that big players with ample resources could weather the levy.
Yet critics warn that the higher price could push firms to offshore work rather than hire US workers at comparable skill levels. Elise Fialkowski, co-chair of Klasko Immigration Law Partners’ corporate immigration practice, said that since last week, some large corporate clients—many with offshore subsidiaries—have started weighing hiring talent in Canada, the UK and elsewhere instead of the United States. “Trump’s executive order almost begs companies to offshore work,” she said. Other scholars emphasized that policy design matters and that current rules often fail to deliver the intended balance for American workers. Ronil Hira, a Howard University political science professor who studies immigration policy, argued that paying $100,000 per visa would not automatically translate into better outcomes for US workers.
Critics of the policy also point to the uncertainty it creates for employers and workers alike. Abhishek Singh, a software engineering manager based in the Seattle area, has spent a decade in the United States on an H-1B visa. He welcomed the White House clarification that the fee applies to future applicants but said he remains worried about possible future shifts. If the policy tightens further, Singh said, he might consider relocating or seeking opportunities elsewhere—potentially returning to India or pursuing roles in Canada, Japan or South Korea if a viable option arises. “There’s uncertainty now that anything can happen in the future,” Singh said. “If we are forced out, then that’s the only option we’re left with.”
The policy change, and the administration’s broader immigration overhaul plan, is prompting ongoing debate about whether higher fees will curb abuse without undermining innovation or the competitiveness of the US economy. Some policymakers and scholars caution that the program’s restrictions could deter foreign talent essential to groundbreaking work in technology, healthcare and education. Others argue that the program needs reform to better protect American workers while still allowing multinationals and startups to compete globally. The next steps—and how the administration will implement the proposed changes—will shape hiring for skilled workers in the United States over the coming years.
The uncertainty comes at a time when the economy is navigating a delicate balance between attracting foreign expertise and addressing domestic labor-market concerns. While proponents of the policy argue that the extra revenue could fund enforcement and program improvements, opponents warn that the higher cost could slow or redirect talent flows, potentially chilling innovation and slowing productivity growth.
As policymakers weigh the policy’s design and scope, individual workers and employers are left assessing how, or whether, their plans will change. Singh’s hesitations reflect a broader anxiety among immigrant workers who have built careers in the United States and contributed to growth across industries. The coming months will determine whether the six-figure fee becomes a template for future immigration policy or a one-off shift that temporary minimizes its impact while the administration continues to refine the program.