Silicon Valley faces hiring turmoil after $100,000 H-1B visa fee
The Trump administration’s decision to impose a $100,000 fee on new H-1B visa applications has sent shockwaves through Silicon Valley, with companies weighing whether to shift more jobs overseas — the very outcome the policy was meant to prevent.
The new fee, announced Friday, applies only to new applicants, not current visa holders. But confusion over the rollout, combined with the steep cost, has already led firms to pause recruitment, budgets, and workforce plans, according to interviews with founders, venture capitalists, and immigration lawyers, News.Az reports, citing Reuters.
“I’ve had several conversations with corporate clients … where they’ve said this new fee is simply unworkable in the U.S.,” said Chris Thomas, an immigration attorney at Holland & Hart. “These are large companies, some of them Fortune 100 names, that are now looking to hire talent elsewhere.”
About 141,000 new H-1B applications were approved in 2024, with computer-related jobs accounting for the majority, Pew Research data shows. The new fee dwarfs the previous few-thousand-dollar cost, making it more attractive for companies to hire in lower-cost hubs such as India.
While Big Tech firms like Amazon, which topped approvals with over 10,000 visas, are expected to absorb the expense, startups face disproportionate pain.
“For larger companies, the cost is not material,” said Menlo Ventures partner Deedy Das. “For smaller companies, especially those with under 25 employees, it’s much more significant. Big tech CEOs expected this and will pay. For them, fewer small competitors is even an advantage.”
Otter.ai CEO Sam Liang warned his company may have to cut H-1B hiring and outsource jobs to India or other countries.
The U.S. tech industry has long relied on the H-1B program to recruit global talent. 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.
Analysts warn the new policy could undermine that pipeline. “We will see a pullback from the smartest people around the world,” said Bilal Zuberi, founder of Red Glass Ventures, who came to the U.S. on an H-1B visa.
Several immigration lawyers said startups are exploring lawsuits, arguing the administration overstepped its authority by setting fees far beyond what Congress envisioned. If courts do not intervene, they fear the costs will cripple U.S. hiring and accelerate offshoring.
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