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Core Points - The new H-1B visa regulation signed by President Trump has raised the application fee to an unprecedented $100,000, significantly increasing the financial barrier for foreign talent seeking to work in the U.S. and fundamentally altering the talent selection logic [1][2][15] Impact on Various Sectors - Startups: The high application fee poses a severe threat to small startups, particularly those with fewer than 25 employees, as the cost is deemed prohibitively high. Many successful startups have immigrant founders, and this regulation could stifle innovation by making it impossible to recruit overseas talent [5][6] - Indian IT Service Giants: Major Indian IT companies, which are significant users of H-1B visas, may see their core operating profits reduced by 7% to 15% due to the new fees. This could force them to alter their long-standing business models [6][7] - Silicon Valley Tech Giants: Companies like Amazon, Microsoft, and Google rely heavily on H-1B visas to hire foreign software engineers. The new fee structure could increase their annual costs for H-1B employees to $5.5 billion, potentially shifting their hiring focus from emerging talent to more experienced professionals, which may lead to a talent gap and hinder long-term innovation [7][10] - U.S. Universities and Research Institutions: The new regulation places a heavy financial burden on universities and research institutions that rely on H-1B visas to hire faculty and researchers. The increased costs could lead to a reduction in the hiring of foreign staff, adversely affecting research capabilities and international talent cultivation [10][11] Broader Economic Implications - Outsourcing Trends: The new visa fees may accelerate the trend of U.S. companies outsourcing talent to countries like India, as firms seek to avoid the high costs associated with H-1B visas. Reports indicate a 50% increase in U.S. companies looking for visa-free global hiring options [12][14] - International Competition: Other countries, particularly Canada, are poised to capitalize on the U.S. visa changes by attracting skilled talent who may now view the U.S. as less accessible. Canadian officials see this as a significant opportunity to enhance their innovation sectors [13][14]