In brief
In a significant shift, the Trump administration has introduced a $100,000 fee for H-1B visa applications, causing distress among small businesses, particularly startups and nonprofits, that rely on skilled foreign workers. The new fee, set to impact future applications, poses challenges for firms already facing workforce shortages, with some leaders warning it could stifle innovation and economic growth. Industry experts argue the financial burden is unsustainable for smaller companies, prompting fears that this policy could lead to a talent exodus overseas.
When US President Donald Trump signed an executive order last Friday to add a $100,000 (£74,000) fee for applications for H-1B visas, a programme for skilled foreign workers, Abhishek Singh immediately worried he would have to relocate.
Mr. Singh, a software engineering manager based in the Seattle area, knew that his employer - a US startup - would not be in a position to pay the fee on top of his current salary.
He breathed a slight sigh of relief when the White House clarified on Saturday that for now, the fee only applies to future applicants. However, his worries reflect the potential consequences of this change, imposing new burdens for businesses and possibly dampening innovation and economic growth.
The H-1B programme is often associated with major tech giants; Amazon alone had over 10,000 H-1B visas approved in the first half of 2025. But startups and smaller firms, such as nonprofits, are also reliant on this visa programme. For these entities, a six-figure fee could be crippling.
If you’re a startup with new technology and some venture capital, but you’re worried about burning through it too quickly, this could kill you, warned John Skrentny, a professor at UC San Diego.
Organizations across various industries, including healthcare and education, are also worried about the long-term implications of this fee. Karen Brady, the CEO of Ryther, a behavioral health nonprofit in Seattle, stated, There’s no way we can afford $100,000; we won’t be doing any more H-1B visas. This could exacerbate existing workforce shortages in sectors already struggling with demand.
Furthermore, Dan Wang, a professor at Columbia Business School, noted that such employment policies could lead firms to offshore their operations instead of hiring skilled US workers, undermining the intended goal of balancing labor market competitiveness.
Despite a temporary reprieve, employees like Mr. Singh remain uncertain about their future, considering relocating if the administration’s stance continues to harden against immigration.
