San Francisco, Sept. 23 — A sweeping move by the Trump administration to impose a $100,000 fee on new H-1B visas has shaken Silicon Valley, forcing companies to freeze recruitment and consider shifting jobs overseas.
The new levy, announced late Monday, applies to all fresh H-1B hires but exempts current holders. Still, industry leaders say the impact is immediate, with hiring pipelines disrupted and uncertainty clouding workforce planning.
“This is the single most punitive measure we’ve seen in decades of immigration policy,” said a senior executive at a California-based startup incubator. “For many small firms, paying $100,000 just to bring in one engineer is impossible.”
While giants like Google and Microsoft may absorb the blow, venture-backed startups say the flat fee is disproportionately harmful. Many rely heavily on international graduates from U.S. universities, often offering equity rather than high cash salaries.
Recruiters reported that some companies have already halted interview processes for foreign candidates, redirecting efforts toward contract workers abroad. “We’re seeing immediate offshoring conversations,” said Narayan Rao, a Bay Area immigration lawyer.
Supporters of the fee argue that the policy will protect American jobs. A senior Trump administration official said the measure “ensures companies invest first in U.S. workers rather than relying on cheaper foreign labor.”
But critics counter that the move risks undermining America’s long-standing edge in innovation. Nearly half of Fortune 500 companies were founded by immigrants or their children.
“Immigrants are the lifeblood of our tech economy,” said Rep. Ro Khanna (D-CA). “By erecting such barriers, we are pushing talent — and jobs — out of the United States.”
Business coalitions and tech lobbies are preparing lawsuits, arguing the executive action exceeds congressional authority. They point to past court rulings that limited sudden changes in visa processing.
Analysts say the outcome will shape the future of U.S. competitiveness in tech. “If enforced, this could accelerate the offshoring trend we’ve already seen,” warned Stanford economist Susan Harper. “India, Canada, and Europe stand to benefit.”
For now, companies are recalculating budgets and reconsidering expansion plans. International students, many of whom depend on H-1B visas to stay in the U.S. after graduation, are left in limbo.
“America has always been the land where the best talent wants to come,” said Harper. “This policy risks closing that door.”
