The tech industry is knee-deep in uncertainty. This comes on the heels of an executive order from former President Donald Trump that set a new $100,000 fee for H-1B visa applications. Companies are deeply concerned about this potential move. They rely on the H-1B visa program to recruit and retain foreign workers for specialty occupations, particularly in the fields of technology, engineering and medical research.
The H-1B visa program was first introduced in 1990 as part of an omnibus immigration bill. It has become one of the main avenues for U.S. employers to hire skilled foreign workers. It provides 65,000 visas annually for such applicants with at least a bachelor’s degree. In addition, it provides for 20,000 additional visas for people with advanced degrees. After initially receiving visas that last from three to six years, they are stuck. To issue them, companies have to adhere to rigorous requirements, including paying $5,000 in issuance fees.
With a completely new fee imposed by the state, many businesses are having a tough fiscal row to hoe. Consequently, they frantically wire their H-1B staff to convince them to stay in the country. The executive order applies to first-time applicants as well as those seeking renewals, potentially affecting thousands of workers and their employers nationwide.
Impacts on the Tech Landscape
The tech industry, of course, remains one of the biggest winners of the H-1B visa program. Many of the top companies employing H-1B workers during the 2025 fiscal year include Amazon, Tata Consulting Services, Microsoft, Meta, Apple, and Google. Together, these companies employ tens of thousands of foreign-born innovators whose talents and productivity have fueled each firm’s explosive growth.
In truth, that proportion is as high as 54 percent for all U.S. billion-dollar start-ups, by some definitions called “unicorns,” that have at least one immigrant co-founder. Smart, innovative people from every corner of the globe are helping to lead the US technology sector to new heights. Their influx has played a key role to this progress. An executive order signed by Trump just last month could unravel these victories.
Morrisett lamented how the current climate discourages would-be immigrants. The world’s best and brightest are going to increasingly wonder whether it’s worth it to come here.
“It is all compounding to the message, ‘We don’t want you in the United States,’” – Morrisett
I know a lot of you all in the tech community really resonate with that. They are concerned that increased costs to hire foreign talent will drive off some of the brightest minds in the industry.
Legal Challenges Loom
Legal experts believe that Trump’s executive order will be pretty easy to strike down in court. As expected, critics say the new fee structure favors big companies over smaller competitors. Without the capital to cover these losses, companies will find it harder and harder to compete for the best talent. This challenge will be compounded as competition accelerates.
Jeremy Robbins of the American Immigration Council made a similar point about the order’s potential impact on innovation in America.
“Putting on a flat fee that privileges large companies over small ones, or incentivizes talent to go overseas or incentivizes companies to set up shop overseas, is not an answer,” – Robbins
Not surprisingly, this new situation raises alarm bells for the future of U.S. tech companies. Will they continue to be able to grow their businesses and draw the best and brightest from abroad?
Reactions from Industry Leaders
On the campaign trail, Trump proposed requiring companies to determine the value of a foreign worker. They have to weigh it against the extreme penalty levied by their federal government.
“The company needs to decide… is the person valuable enough to have a $100,000 a year payment to the government? Or they should head home and go hire an American,” – Donald Trump
This view has bred controversy among the proponents of a more globalist approach to immigration and workforce development. As many critics have pointed out, these proposals will stifle innovation and growth in industries that are the foundation of our economy.
Morrisett emphasized that international students studying in the U.S. often contribute significantly to the tech ecosystem and create ventures that translate into successful start-ups. In addition, stricter visa regulations are decreasing incentives for graduates to remain in the country. As a consequence, many will choose to continue their careers elsewhere.
“Now there are fewer incentives for them to stay in the country and foster that idea if they don’t have that visa,” – Morrisett
This change would be retrogressive not only for the American start-up ecosystem but for America’s long-term economic growth.
