U.S. technology companies are weighing whether to shift more jobs overseas after the Trump administration imposed a $100,000 fee on new H-1B visas, a move critics warn could undermine America’s tech edge.
The levy, announced Friday, dramatically raises the cost of a program long used to recruit highly skilled foreign workers.
Instead of encouraging firms to hire locally, executives and investors told Reuters the policy is already prompting conversations about building teams abroad, particularly in India where wages are lower and global tech hubs are expanding.
“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 law firm Holland & Hart, in an interview with Reuters. “And these are large companies, some of them household names, Fortune 100 type companies.”
Startups, which rely heavily on international engineers, say the measure hits them hardest. “We probably have to reduce the number of H-1B visa workers we can hire,” said Sam Liang, co-founder and CEO of AI transcription firm Otter.
“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,” he told Reuters.
About 141,000 new H-1B applications were approved in 2024, according to Pew Research, with Amazon alone receiving more than 10,000. While Congress caps new visas at 65,000 a year, exemptions for universities and research institutions push approvals higher.
The Trump administration argues the program has suppressed wages for U.S. workers, and that higher costs will reserve visas for “very high value jobs.” Netflix co-founder Reed Hastings, a long-time Democrat donor, voiced support on X, saying the change could reduce reliance on the visa lottery.
But venture capitalists caution that blanket rules will stifle innovation. “Blanket rulings like this are rarely good for immigration,” said Menlo Ventures partner Deedy Das, whose firm has backed AI companies like Anthropic. “It will disproportionately affect startups,” he told Reuters.
