High Cost Visa Policy Targets Foreign Talent, Sparks Concern Among Tech Firms
In a sweeping overhaul of the H-1B visa program, President Donald Trump has introduced a new mandate requiring companies to pay a hefty $100,000 per year for each foreign worker they sponsor under the high-skilled work visa. The policy, signed into effect on Friday, marks a significant shift in how the United States manages the flow of international talent into its labor force—particularly within the tech sector, which has historically relied on H-1B visa holders to fill critical roles in engineering, data science, and software development.
Trump, who also unveiled a separate “gold card” visa for individuals willing to invest $1 million in exchange for permanent residency, emphasized that the move aims to attract top-tier talent while ensuring that only the most skilled professionals are sponsored by U.S. firms. “We’re going to have great people coming in, and they’re going to be paying,” Trump told reporters.
The H-1B visa system currently grants 85,000 visas annually via a lottery. By drastically increasing the sponsorship cost, the administration hopes to discourage companies from relying on foreign labor and instead encourage the hiring and training of American workers, particularly recent U.S. graduates.
Critics Warn of Brain Drain and Economic Setback Amid AI Race
Commerce Secretary Howard Lutnick defended the decision, claiming “all the big companies are on board.” However, many in the tech industry argue the policy could have disastrous long-term consequences. Critics, including investors and policy analysts, warn that this fee may disproportionately hurt startups and small tech firms that cannot afford the added burden.
“This creates a disincentive to attract the world’s smartest talent to the U.S.,” said Deedy Das, a partner at Menlo Ventures. “If the U.S. ceases to attract the best talent, it drastically reduces its ability to innovate and grow the economy.” Some fear this could shift high-value tech work offshore, weakening America’s competitive edge—especially in the fast-developing AI sector where China is gaining ground.
Legal experts have also raised concerns, pointing out that Congress only authorizes fees to cover application processing costs—not as a revenue-generating tool. Aaron Reichlin-Melnick of the American Immigration Council suggested the new fee could face legal challenges.
Major corporations like Amazon, Microsoft, Google, and Apple—some of the top H-1B sponsors—could see costs soar into the millions annually. Data shows California hosts the highest number of H-1B visa holders, with India being the largest source, accounting for over 70% of approvals in the past year.
As the U.S. faces pressure to remain a hub for technological innovation, this move has triggered debate over whether restricting access to global talent is worth the potential economic and strategic cost.
