What's happened
On September 19, 2025, President Donald Trump signed an executive order imposing a $100,000 one-time fee on new H-1B visa applications, up from $215. The move aims to prioritize American workers and reduce visa abuse but has sparked confusion, legal challenges, and concerns over impacts on tech firms and foreign workers, especially from India, which received 71% of visas last year.
What's behind the headline?
Impact on Tech Industry and Skilled Workers
The $100,000 one-time fee represents a nearly 500-fold increase from the previous $215 base fee, fundamentally altering the economics of hiring foreign skilled workers under the H-1B program. This will sharply reduce the number of new H-1B visa applications, especially from companies relying on lower-cost foreign talent.
Strategic Motives Behind the Policy
The administration frames the fee hike as a measure to protect American workers from wage suppression and job displacement. However, the policy disproportionately affects Indian and Chinese workers, who constitute the majority of H-1B recipients, raising concerns about a potential brain drain and disruption to US innovation ecosystems.
Legal and Economic Consequences
The abrupt implementation has caused confusion and panic among visa holders and employers, with some companies advising employees to avoid travel. Legal challenges are expected, as critics argue the executive order bypasses Congress. Economically, small businesses reliant on H-1B workers face significant labor shortages, while large tech firms may struggle to fill specialized roles.
Global Talent Competition
Other countries, including Hong Kong and the UK, are positioning themselves to attract displaced talent by promoting their own immigration schemes. The UK is reportedly considering abolishing visa fees for skilled workers to lure global talent, highlighting a shifting global landscape in skilled immigration.
Outlook
The policy will likely reduce the inflow of foreign skilled workers to the US, impacting tech innovation and economic growth. Companies will need to adapt by investing more in domestic talent or relocating operations. The long-term effects depend on legal outcomes and potential regulatory adjustments, but the immediate impact is a significant disruption to the H-1B visa system.
What the papers say
The South China Morning Post highlights the confusion and opportunity created by the new fee, suggesting Hong Kong could attract displaced H-1B workers due to its own talent schemes. Business Insider UK quantifies the expected monthly reduction in work authorizations and warns of impacts on foreign students and Indian workers, who make up 70% of H-1B recipients. Al Jazeera provides detailed context on the administration's immigration crackdown and the economic rationale behind the fee, noting the negative stock market reaction among tech giants like Amazon. The Guardian and The Independent emphasize the humanitarian and economic concerns raised by India, with Indian officials warning of family disruptions and a potential brain drain. Gulf News and AP News report on the suddenness of the policy's implementation and the expected legal challenges, while also detailing the introduction of new "Gold Card" and "Platinum Card" visas aimed at wealthy individuals. Politico and SBS clarify that the fee applies only to new applicants, not current visa holders, a point that helped ease some immediate panic. Together, these sources paint a picture of a sweeping, controversial policy shift with wide-ranging implications for global tech talent and US immigration policy.
How we got here
The H-1B visa program, created in 1990, allows US companies to hire skilled foreign workers, primarily in tech and STEM fields. It has an annual cap of 85,000 visas plus 20,000 for advanced degree holders. The program has faced criticism for undercutting American wages and being abused by companies. President Trump’s administration has sought to tighten immigration policies, culminating in this fee hike and a proposed revamp favoring higher-paid workers.
Go deeper
- How will the $100,000 fee affect tech companies?
- What is India's response to the new H-1B visa policy?
- Are there legal challenges to the new visa fee?
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