Trump’s $100,000 H-1B Visa Fee Proposal Sparks Concern in Tech Sector
The Trump administration’s plan to impose a $100,000 fee on new H-1B visas—a program heavily used by tech firms to recruit skilled workers from India and China—is raising concerns across the industry. The move could disrupt access to global talent, increase costs for businesses, and shift innovation hubs outside the United States.
Following the announcement, several big tech companies and banks advised employees to remain in the U.S. or return quickly. India remains the largest beneficiary of the H-1B program, accounting for 71% of approvals last year.
Analyst Reactions
Benjamin Jang, Nicola Wealth Management
Jang warned that tech firms, which rely heavily on foreign skilled labor, could face margin compression and operational challenges. He noted that while Trump’s long-term goal is to accelerate local hiring, the near-term risk is that the U.S. could lose its edge as a global innovation leader.
Colin Sebastian, Baird
Sebastian emphasized that while larger companies like Amazon, Google, and Meta may absorb the financial hit, smaller U.S. businesses could suffer the most. The policy may force some firms to relocate research and engineering centers to Toronto, London, or Bangalore.
Derren Nathan, Hargreaves Lansdown
Nathan pointed out that while H-1B workers make up less than 1% of the U.S. workforce, their role in driving innovation is disproportionately significant.
Bernstein Analysts
Bernstein argued that the steep visa fee could accelerate demand for local hiring and generative AI technologies as firms attempt to offset the shortage of skilled IT professionals. They also expect strong lobbying efforts from U.S. tech companies.
TD Cowen Analysts
Cowen analysts noted that the proposal comes at a time of cyclical and structural pressures, including geopolitical risks and GenAI disruption, adding more strain to the tech and financial services sectors.
Stifel Analysts
Stifel suggested that IT services companies may shift more operations offshore, increasing the ratio of overseas to domestic work to as high as 90%.
Berenberg Analysts
Berenberg warned that by discouraging foreign talent and forcing international students to leave after graduation, the policy risks triggering a brain drain that could weigh heavily on U.S. productivity.
Arthur R. Hogan III, B. Riley
Hogan highlighted the massive fee jump—from $1,000 to $100,000—as a game-changer. While the administration hopes it will boost U.S. graduate hiring, he noted a skills mismatch in the domestic workforce. Companies, he said, will need to rethink hiring strategies as costs climb, comparing the policy’s effect to recent trade tariffs.
