Core Points - The recent executive order by President Trump regarding H-1B visa holders has raised significant concerns and is likely to face legal challenges [1][13][14] - The new policy introduces a $100,000 fee for H-1B visa holders who are currently outside the U.S., which has led to a surge in flight prices and urgent returns by employees of major corporations [1][3] - The U.S. Department of Homeland Security plans to adjust the H-1B visa application process to prioritize higher-skilled applicants and those with better salaries, reflecting a shift towards a more elite immigration system [3][4] Industry Impact - The technology sector is at the center of this visa policy change, with 64% of H-1B visas issued to individuals in the computer industry, affecting major companies like Amazon, Google, and Microsoft [6][5] - Small and startup companies are expected to face greater challenges due to the increased costs associated with the new visa fees, potentially stifling their ability to hire foreign talent [8][9] - The new regulations may deter venture capital and private equity investments in startups that heavily rely on H-1B employees, as the financial burden increases [8][9] Economic Implications - If the number of H-1B applications remains constant, U.S. companies could incur over $14 billion in fees annually under the new rules [6] - The tightening of H-1B visa regulations is likely to impact the Indian IT and outsourcing industry significantly, as 71% of H-1B visas were issued to Indian nationals last year [9][10] - The overall venture capital market in the U.S. is already showing signs of contraction, with a 12.9% decrease in funding for startups compared to the previous year [9] Talent Attraction - The changes to the H-1B visa program may lead to a reassessment of the U.S.'s attractiveness to global talent, with some tech executives suggesting that cities in Canada may become more appealing [11][12] - Major U.S. companies are already expanding their operations in countries like Canada, which could further shift talent away from the U.S. [11][12]