By Omodele Adigun
The Trump administration’s hefty new visa fees for H-1B workers have prompted high-level talks inside companies in Silicon Valley and beyond on the possibility of moving more jobs overseas – precisely the outcome the policy was meant to stop.
U.S. President Donald Trump on Friday announced the change to the visa program that has long been a recruitment pathway for tech firms and encouraged international students to pursue postgraduate courses in the U.S.
While the $100,000 levy applies only to new applicants – not current holders as first announced – the confusion around its roll-out and steep cost are already leading companies to pause recruitment, budgeting and workforce plans, according to Reuters interviews of founders, venture capitalists and immigration lawyers who work with technology companies.
“I have had several conversations with corporate clients … where they have said this new fee is simply unworkable in the U.S., and it’s time for us to start looking for other countries where we can have highly skilled talent,” said Chris Thomas, an immigration attorney at Colorado-based law firm Holland & Hart. “And these are large companies, some of them household names, Fortune 100 type companies, that are saying, we just simply cannot continue.”
About 141,000 new applications for H-1B were approved in 2024, according to Pew Research. Though Congress caps new visas at 65,000 a year, total approvals run higher because petitions from universities and some other categories are excluded from the cap. Computer-related jobs accounted for a majority of the new approvals, the Pew data showed.
Companies were already weighing an expansion in India before the new visa fee disrupted hiring. Reuters reported exclusively on Tuesday that Accenture has proposed a new campus in the southern state of Andhra Pradesh, with plans to eventually add about 12,000 jobs in the country, where it has its largest workforce.
The Trump administration and critics of the H-1B program have said that it has been used to suppress wages and curbing it opens more jobs for U.S. tech workers. The H-1B visa program has also made it more challenging for college graduates trying to find IT jobs, Trump’s announcement on Friday said.
The visa previously cost employers only a few thousand dollars. But the new $100,000 fee would flip the equation, making hiring talent in countries like India – where wages are lower and Big Tech now builds innovation hubs instead of back offices – more attractive, experts and executives told Reuters.
“We probably have to reduce the number of H-1B visa workers we can hire,” said Sam Liang, co-founder and CEO of popular artificial intelligence meeting agent start-up Otter.ai. “Some companies may have to outsource some of their workforce – hire maybe in India or other countries just to walk around this H-1B problem.”
While conservatives have long applauded Trump’s wide-ranging immigration crackdown, the H-1B move has drawn support from some liberal quarters as well.
Netflix co-founder and well-known Democratic donor Reed Hastings – who said he has followed H-1B politics for three decades – argued on X that the new fees would remove the need for a lottery and instead reserve visas for “very high value jobs” with greater certainty.
But Deedy Das, a partner at venture capital firm Menlo Ventures that has invested in startups such as AI firm Anthropic, said “blanket rulings like this are rarely good for immigration” and would disproportionately affect startups.
Unlike large technology companies whose compensation packages are a combination of cash and stock, pay packages of startups typically lean toward equity as they need cash to build the business.
“For larger companies, the cost is not material. For smaller companies, those with fewer than 25 employees, it’s much more significant,” Das said. “Big tech CEOs expected this and will pay. For them, fewer small competitors is even an advantage. It’s the smaller startups that suffer most.”
The policy could also mean fewer of the talented immigrants who often go on to launch new firms, analysts said.
More than half of U.S. startups valued at $1 billion or more had at least one immigrant founder, according to a 2022 report from the National Foundation for American Policy, a nonpartisan think tank based in Virginia.
Several lawyers said startups they represent are pinning hopes on lawsuits that argue that the administration overstepped by imposing a fee beyond what Congress envisioned, betting that courts would dilute the rule before costs cripple hiring.
If not, “we will see a pullback from the smartest people around the world,” said Bilal Zuberi, founder of Silicon Valley-based venture capital firm Red Glass Ventures, who began his career in the U.S. on an H-1B visa.
Very relevant and timely content. Appreciate you sharing this.
Your blog is a treasure trove of knowledge! I’m constantly amazed by the depth of your insights and the clarity of your writing. Keep up the phenomenal work!
I loved as much as youll receive carried out right here The sketch is attractive your authored material stylish nonetheless you command get bought an nervousness over that you wish be delivering the following unwell unquestionably come more formerly again as exactly the same nearly a lot often inside case you shield this hike
helloI like your writing very so much proportion we keep up a correspondence extra approximately your post on AOL I need an expert in this space to unravel my problem May be that is you Taking a look forward to see you
Hello Neat post Theres an issue together with your site in internet explorer would check this IE still is the marketplace chief and a large element of other folks will leave out your magnificent writing due to this problem
Every time I visit your website, I’m greeted with thought-provoking content and impeccable writing. You truly have a gift for articulating complex ideas in a clear and engaging manner.
I have been surfing online more than 3 hours today yet I never found any interesting article like yours It is pretty worth enough for me In my opinion if all web owners and bloggers made good content as you did the web will be much more useful than ever before
I’ve been following your blog for some time now, and I’m consistently blown away by the quality of your content. Your ability to tackle complex topics with ease is truly admirable.
certainly like your website but you need to take a look at the spelling on quite a few of your posts Many of them are rife with spelling problems and I find it very troublesome to inform the reality nevertheless I will definitely come back again
Its like you read my mind You appear to know so much about this like you wrote the book in it or something I think that you can do with a few pics to drive the message home a little bit but instead of that this is excellent blog A fantastic read Ill certainly be back
Your writing has a way of resonating with me on a deep level. I appreciate the honesty and authenticity you bring to every post. Thank you for sharing your journey with us.
Hello i think that i saw you visited my weblog so i came to Return the favore Im trying to find things to improve my web siteI suppose its ok to use some of your ideas
подписывайся: эксклюзивные обзоры live-казино + рабочие зеркала. учим выигрывать в рулетку, блэкджек и монополию live. промокоды с кэшбэком 20%. регистрация > игра > вывод на киви!
https://t.me/Best_promocode_rus/2723/фриспины_за_email
Коллекция промокодов, бонусов, фриспинов и акций и как их найти: лучший активный канал казино Telegram с огромным опытом и качественным подбором на каждую площадку.
Wow superb blog layout How long have you been blogging for you make blogging look easy The overall look of your site is magnificent as well as the content
Your blog is a true gem in the world of online content. I’m continually impressed by the depth of your research and the clarity of your writing. Thank you for sharing your wisdom with us.
Hi Neat post There is a problem along with your website in internet explorer would test this IE still is the market chief and a good section of other folks will pass over your magnificent writing due to this problem
Its like you read my mind You appear to know so much about this like you wrote the book in it or something I think that you can do with a few pics to drive the message home a little bit but instead of that this is excellent blog A fantastic read Ill certainly be back
I simply could not go away your web site prior to suggesting that I really enjoyed the standard info a person supply on your guests Is going to be back incessantly to investigate crosscheck new posts
Your ability to distill complex concepts into digestible nuggets of wisdom is truly remarkable. I always come away from your blog feeling enlightened and inspired. Keep up the phenomenal work!
Your blog is a breath of fresh air in the often mundane world of online content. Your unique perspective and engaging writing style never fail to leave a lasting impression. Thank you for sharing your insights with us.
My brother recommended I might like this web site He was totally right This post actually made my day You cannt imagine just how much time I had spent for this information Thanks
Nice blog here Also your site loads up fast What host are you using Can I get your affiliate link to your host I wish my web site loaded up as quickly as yours lol