How Trump’s $100K H-1B Visa Fee Will Reshape Big Tech

H-1B Visa Program Changes & Impact - US President Trump proposed a $100,000 fee on H-1B visas, significantly higher than the current typical fee of a couple thousand dollars, aiming to incentivize the hiring of American workers [1][2] - The H-1B visa program, established by the IMMACT 1990, aims to attract highly skilled talent to the US, with a statutory cap of 65,000 visas annually, plus an additional 20,000 for those with US master's degrees or higher, totaling 85,000 [4][5] - The program grants a three-year visa, renewable once for a total of six years, designed to address labor supply gaps, particularly in the technology sector, requiring beneficiaries to hold at least a bachelor's degree [5][6][7] Beneficiaries & Concerns - India is the largest beneficiary of the H-1B program, followed by China, with Amazon being the top company beneficiary, holding approximately 10,000 visas [7][8] - Concerns exist that the H-1B program may function to bring in cheaper labor, potentially displacing American workers and suppressing wages [10] - The proposed changes, including higher wages for selection in the lottery, could disproportionately affect startups and smaller businesses with limited budgets [3][12] Economic & Strategic Implications - The new policy is expected to decrease demand for H-1B visas, leading companies to seek domestic talent, potentially increasing demand for US workers [14] - Restrictions on H-1B visas may induce multinational companies to offshore more vigorously, potentially benefiting countries like India in the medium term [17] - Stricter US immigration policies could create opportunities for other countries, such as the UK, Europe, and China, to attract global talent, with China already streamlining its visa process [18][19] - The changes are viewed by some as an attack on legal immigration, potentially harming US innovation and fostering innovation in emerging markets [13][20][21]