Trump’s $100,000 H-1B Visa Fee Sparks Immigration and Innovation Fears

H-1B Visa Program Overview - H-1B visas allow skilled foreign workers into the US, requiring at least a bachelor's degree and employer sponsorship [6][7] - The US caps H-1B visas at 65,000 annually, with an additional 20,000 for US graduate degree holders, but demand significantly exceeds supply [8] - The mismatch between supply and demand has created opportunities for outsourcing companies, with nearly half of H-1B visas in 2023 going to such firms [10][11] Impact of Proposed $100,000 Fee - A proposed $100,000 fee on H-1B visas is considered a substantial increase, potentially impacting skilled workers coming to the US [2] - Concerns exist that the fee could disproportionately harm small companies and startups, hindering innovation and long-term economic growth [13][15] - Research universities may struggle to afford the fee for all deserving candidates, potentially leading to scientific innovation shifting to other countries [16] Alternative Immigration Models - Some countries, like Canada, Australia, New Zealand, and the UK, use a points-based system to prioritize skilled immigrants based on qualifications [20][21] - An auction system where firms bid on H-1B visas is suggested as a market-driven alternative to the current lottery or the proposed $100,000 fee [22] Potential Negative Consequences - Increased costs associated with H-1B visas could make US universities less attractive to foreign students [24] - Restricting access to skilled foreign talent could negatively impact US competitiveness, particularly in fields like AI [26] - Some companies, like Walmart, have already announced they will no longer sponsor H-1B applicants, indicating a potential chilling effect [17]