H-1B Visa Fee Spike Impacts Tech Industry

H-1B Visa Fee Hike: Who Are the Most Affected by the New U.S. Immigration Policy?

The U.S. government has announced a new, widely impacting immigration policy change: the annual fee for H-1B visas will drastically rise to $100,000. This measure is the latest component of the stricter immigration line noted since President Trump's administration. The new regulation could significantly impact the technology industry, particularly companies that have heavily relied on highly skilled professionals of Indian and Chinese descent.

What is the H-1B visa?

The H-1B visa is one of the most well-known and sought-after work visas in the United States, specifically for fields requiring specialized expertise — primarily IT, engineering, and scientific positions. The system provides 65,000 visas annually for such workforce, with an additional 20,000 visas reserved for professionals with an advanced degree (such as a master's or PhD). The visa typically lasts three years, which can be extended once for another three years, and there is an option to apply for a green card during this period.

The program's aim was for the USA to access the best talents globally in the competition — however, the current change imposes significant financial burdens on employers who already had to cover almost all costs, and this situation is further aggravated.

Background of the Decision and Arguments

Trump previously publicly supported the H-1B program, as his own businesses regularly used it. However, during his first presidential term (2017–2021), he made multiple attempts to tighten visa conditions. The announcement of the current fee hike came with another presidential order, introducing a so-called "gold card" as well: offering permanent residence in the USA in exchange for a $1 million payment.

The decision is justified by claiming some employers abused the visa program, suppressing the wage level of American workers and depriving them of opportunities. According to him, the new rules aim to protect the American workforce.

In contrast, technology companies and multiple analysts believe that the visa program brings competitive knowledge to the United States rather than wage dumping. They point out that the number of foreign workers employed in STEM (science, technology, engineering, mathematics) fields in the United States more than doubled between 2000 and 2019, while total STEM employment expanded by only 44.5%.

The Most Affected Companies and Countries

According to U.S. government data, India is the largest beneficiary of H-1B visas: 71% of approved applications are linked to Indian nationals, while China is second with 11.7%. This change could be particularly shocking for Indian workers and their families who often plan long-term in the USA, with green card applications and children's schooling.

The largest American technology companies, including Amazon and its cloud service (AWS), Microsoft, and Meta (formerly Facebook) also rely substantially on H-1B visas. Alone, Amazon submitted over 12,000 visa applications in the first half of this year, while the other two tech giants each submitted more than 5,000. These figures demonstrate how entrenched the visa program is in the operation of the American technology industry.

The current $100,000 annual fee effectively means that companies may face millions of dollars in additional costs if they wish to retain their existing foreign workforce or hire new ones.

Potential Consequences

Several economists and industry experts warn that the new regulation may not stimulate job creation but instead the opposite: it may compel companies to outsource valuable, high-skilled jobs to foreign subsidiaries in countries like India or other Asian nations. This could weaken the United States' competitiveness in the global technological race in the long run, especially in rapidly evolving areas like artificial intelligence.

Many current H-1B visa holders live in uncertainty, as it is unclear whether the new fee applies to already issued visas and if so, who will bear this cost. It is also questionable what will happen with initiated green card processes if employers decide not to renew.

Political Impact and International Reaction

While the head of the U.S. Department of Commerce stated that "every major company agrees with the new fee," in reality, many companies voice concerns behind closed doors. The technology sector has previously been critical of Trump's immigration policy, and the new fee clearly represents a business burden to them.

The Indian and Chinese diplomatic missions have not yet officially responded to the changes, but according to media reports, several consular offices have already seen increased interest in alternative visa options, for instance, moving to Canada or the United Arab Emirates.

Conclusion

The new H-1B visa fee increase represents a significant turning point in U.S. immigration policy, whose effects extend beyond the visa system. The step forces employers to rethink business decisions and could plunge already working foreign specialists into uncertainty in the country. The measure is expected not only to impact IT talents aspiring to the USA but also to influence the dynamics of the global tech competition as a whole. The upcoming months will be crucial in determining how the market and international community react to this new situation.

(Source of the article: Based on Trump's signed presidential directive.)