Trump Imposes $100K H-1B Visa Fee, Raising Fears of Talent Shortages and Startup Strain

President Trump has introduced a new policy that imposes a one-time $100,000 fee on new H-1B visa applications, set to take effect immediately and last for one year unless extended. The White House emphasized that the fee does not apply to current visa holders or renewals, only to new petitions, and clarified that it is not an annual charge. The administration argues the measure will push companies to prioritize hiring Americans and ensure only the “top talent” from abroad is brought in. Critics, however, warn that the steep cost will hit small businesses and startups hardest while leaving tech giants like Amazon, Google, Meta, Microsoft, and Apple largely unaffected given their vast resources. Industry leaders fear that entry-level opportunities for foreign workers will vanish, and some companies may be forced to shift hiring overseas to countries such as India, China, or Canada. Data shows that most H-1B approvals in recent years have gone to computer-related jobs, with Amazon emerging as the largest sponsor, followed closely by other tech giants. Economists also caution that restricting skilled immigration does not guarantee more jobs for Americans; similar limits during the pandemic and Trump’s first term led instead to record job openings and labor shortages. Legal experts further question whether the president even has the authority to impose such a fee, since Congress has only authorized charges that cover processing costs.