Summary:
President Trump's new $100,000 fee for H-1B visas aims to curb abuse but could severely impact startups and innovation.
Startups may struggle to afford the fee, potentially losing talent to cities like Toronto and London, as warned by entrepreneurs.
Large tech companies like Amazon and Microsoft are top H-1B users, but the fee threatens U.S. competitiveness in global talent attraction.
The policy could lead to legal challenges, as it may not follow proper legislative or rulemaking procedures.
Existing H-1B holders are exempt, but the uncertainty has prompted companies to advise caution on international travel.
Startup Leaders Warn New $100K H-1B Visa Fee Will Hurt U.S. Entrepreneurship and Innovation
(Photo by iStrfry, Marcus on Unsplash)
Longtime entrepreneurs and venture capitalists are raising concerns over President Trump's new executive order imposing a $100,000 fee for H-1B work visas. This visa program allows companies to hire highly skilled foreign workers in specialty occupations like software engineering, data science, and other STEM fields.
The Trump administration claims the fee aims to curb abuse of the H-1B program and reserve visas for only the 'best of the best.' Currently, companies pay several thousand dollars in fees and legal costs per application, making this surcharge unprecedented.
Manny Medina, co-founder of Seattle startup Outreach, warned on LinkedIn that this could make H-1B sponsorship prohibitively expensive, driving talent to cities like Toronto, Vancouver, and London. Medina, who recently relocated to London, encouraged founders in visa limbo to consider moving abroad.
Startups, with limited runway and cash, would be especially hard-hit. Garry Tan, CEO of Y Combinator, noted on LinkedIn that early teams cannot absorb such a tax, while larger companies like Amazon and Microsoft might manage the costs. Amazon and Microsoft rank No. 1 and No. 3 for H-1B visa approvals, with Meta, Apple, and Google also in the top 10.
Xiao Wang, CEO of immigration startup Boundless, called the policy a blow to H-1B and a risk to U.S. competitiveness, stating that the country's leadership in technology and innovation relies on attracting top global talent. The Seattle area, with one of the largest Asian Indian populations in the U.S., could be disproportionately affected, as over 40% of foreign-born IT workers there are from India.
Following the executive order, Amazon and Microsoft advised visa holders to restrict international travel and return to the U.S. Axios reported that the fee would not apply to existing H-1B holders, but the policy is expected to face legal challenges. Boundless highlighted that new fees typically require congressional legislation or a formal rulemaking process with public input.
Casium, another immigration startup, added that the situation is evolving, with implementation depending on agency actions, court responses, and additional guidance.
Comments