New $100,000 H-1B Visa Fee: Major Blow to U.S. Tech and Innovation

The Trump administration’s proposed annual $100,000 fee for H-1B foreign worker visas is poised to send significant ripple effects throughout the U.S. innovation landscape and its crucial technology sector. This substantial policy change, announced Friday, immediately prompted major technology firms to issue urgent advisories to their H-1B employees, urging them to remain within the United States or expedite their return.

Industry experts anticipate this new fee will deliver a considerable blow to the technology sector, which heavily depends on highly skilled professionals, particularly from India and China. This latest directive forms part of a broader, extensive immigration crackdown initiated by the administration since January, targeting various forms of legal immigration. The proposed overhaul of the H-1B visa program stands as its most prominent endeavor to date in reshaping temporary employment visa policies.

“Train Americans. Stop bringing in people to take our jobs.”

Commerce Secretary Howard Lutnick articulated the administration’s stance, stating, “If you’re going to train somebody, you’re going to train one of the recent graduates from one of the great universities across our land. Train Americans. Stop bringing in people to take our jobs.” This emphasizes a “hire American” approach at the core of the new H-1B visa policy.

The administration’s aggressive stance on H-1B visas has ignited a significant point of contention with the technology industry, a sector that historically contributed millions to the presidential campaign.

Tech Giants React: Urgent Advisories Issued to H-1B Workers

Internal communications reviewed by Reuters reveal that major corporations such as Microsoft, JPMorgan, and Amazon swiftly advised their H-1B visa-holding employees to stay within the U.S. Furthermore, those H-1B workers currently abroad were urged to return before the new fee structures were implemented at midnight Saturday (0400 GMT Sunday).

An email circulated to JPMorgan employees by Ogletree Deakins, the firm managing visa applications for the investment bank, explicitly stated, “H-1B visa holders who are currently in the U.S. should remain in the U.S. and avoid international travel until the government issues clear travel guidance.” Representatives from Microsoft, JPMorgan, Ogletree Deakins, and Amazon did not provide immediate comments to Reuters regarding these developments.

The H-1B Debate: Critics vs. Supporters

The H-1B program has long been a subject of intense debate. Critics, including a segment of U.S. technology workers, contend that the visa system enables companies to depress wages and displace American professionals capable of performing the same roles. Conversely, advocates like Tesla CEO Elon Musk – himself a naturalized U.S. citizen who once held an H-1B visa – assert that the program is vital for attracting highly skilled global talent, bridging critical skill gaps, and maintaining the competitiveness of American firms.

The executive order signed by Trump on Friday acknowledges instances where some employers have reportedly misused the program, leading to wage suppression and unfair disadvantages for American workers. It further cited statistics indicating a significant surge in foreign STEM (Science, Technology, Engineering, and Mathematics) workers in the U.S., doubling to nearly 2.5 million between 2000 and 2019, while overall STEM employment grew by a lesser 44.5% in the same period.

Potential Impact on Global Talent and Innovation

Experts warn that imposing such substantial fees could severely deter the world’s brightest minds from seeking opportunities in the U.S. Deedy Das, a partner at venture capital firm Menlo Ventures, expressed concern on X, stating, “If the U.S. ceases to attract the best talent, it drastically reduces its ability to innovate and grow the economy.”

The proposed fee structure is expected to translate into millions of dollars in additional operational costs for businesses, potentially disproportionately affecting smaller tech firms and burgeoning startups. While Commerce Secretary Lutnick indicated the H-1B visa would carry a $100,000 annual charge for its three-year duration, specifics regarding the fee’s administration remain “still being considered,” according to Reuters. Currently, applying for the H-1B visa lottery involves a nominal fee, with additional processing fees amounting to several thousand dollars upon approval. The proposed $100,000 annual fee marks a drastic increase.

Analysts are already speculating that such elevated costs could compel companies to relocate high-value work abroad, potentially undermining America’s competitive standing in crucial areas like the global artificial intelligence (AI) race against nations such as China. Jeremy Goldman, an analyst at eMarketer, cautioned, “In the short term, Washington may collect a windfall; in the long term, the U.S. risks taxing away its innovation edge, trading dynamism for short-sighted protectionism.”

Key Beneficiaries and Corporate Approvals

Government data from last year highlights India as the predominant recipient of H-1B visas, securing 71% of all approved beneficiaries. China followed as the second-largest, albeit distant, beneficiary at 11.7%. In the first half of 2025 alone, Amazon.com and its cloud services division, AWS, collectively obtained approval for over 12,000 H-1B visas. Microsoft and Meta Platforms also secured more than 5,000 H-1B visa approvals each.

Despite significant industry concerns, Commerce Secretary Lutnick asserted on Friday that “all the big companies are on board” with the proposed $100,000 annual H-1B visa fee, claiming, “We’ve spoken to them.” However, many leading U.S. tech, banking, and consulting firms either declined to comment or did not immediately respond to inquiries. Similarly, the Indian embassy in Washington and the Chinese Consulate General in New York offered no immediate responses.

The financial markets reacted swiftly to the announcement. Shares of Cognizant Technology Solutions, an IT services giant with considerable reliance on H-1B visa holders, saw a nearly 5% decline. U.S.-listed shares of prominent Indian tech companies like Infosys and Wipro also closed lower, experiencing drops between 2% and 5%.

Legal Scrutiny and Broader Immigration Changes

The legality of the steep new H-1B fees has been immediately challenged. Aaron Reichlin-Melnick, policy director of the American Immigration Council, voiced his concerns on Bluesky, stating, “Congress has only authorized the government to set fees to recover the cost of adjudicating an application.”

The H-1B program, designed for temporary foreign workers in specialized fields, allocates 65,000 visas annually, with an additional 20,000 reserved for professionals holding advanced degrees. Critically, almost all associated visa fees are typically borne by the employers. These visas are generally granted for an initial period of three years, extendable up to six.

In a related development, President Trump also signed an executive order on Friday introducing a “gold card” pathway to U.S. permanent residency, available to individuals willing to invest $1 million.