The Trump administration announced the addition of a $100,000 fee to H-1B visa applications in September this year, meaning that skilled foreign workers hoping to be employed by US companies would need to fork out a huge sum of money to be legally employed in the States. On the other hand, American business (particularly in tech who have long relied on foreign talent in skilled positions) are now being forced to consider somehow cover application fees for employees who can’t afford $100,000.
Indeed, from the outset, it’s clear that both foreign skilled workers and US businesses stand to be negatively affected by this policy change. While many other parts of the world are doing their darndest to attract to talent, especially in the fast-growing world of tech, the Trump and the United States are actively and intentionally pushing them away.
So, why the massive application fee?
Well, critics of the H-1B visa have always been around. Their argument is that the visa “undercuts” the American workforce – the good old, “they’re stealing our jobs”, argument. It follows, then, that part of the intention behind this move by the US government is fueled by a hope that by decreasing the number of skilled workers who are able to get top jobs in tech in the US, there will be more opportunities for locals.
Seems pretty straightforward, right?
Unfortunately, it’s a lot more complicated than a quick and simple cause and effect. In fact, there are plenty other ramifications that this will have for not only the US and its economy but the rest of the world too. Have these possibilities been considered by Trump and his anti-immigration contingent, or is this going to be another radical policy change that’ll simply be reversed (or amended) by whoever next takes up the Oval Office?
Nvidia To Continue Supporting H-1B Visas
Following the announcement of the new visa application fee, Nvidia has made a point of being clear about the fact that they will continue to sponsor H-1B visas.
According to Reuters, CEO, Jensen Huang, told staff that, as an immigrant himself, he has a direct understanding of the concerns many of them have regarding their future in the country. Furthermore, Huang reportedly noted that Nvidia was built by a multi-national group of employees and technical experts, and it simply “would not be possible without immigration.”
Now, on the one hand, this is great news for Nvidia employees who can, at least for now, rest assured that their jobs are a little more secure than what they may have thought when the whole visa application fee was announced. In fact, they may even be, arguably, more secure than employees at most other tech companies in the US.
But, Nvidia represents the most successful of businesses. If fact, it’s not just high up there – it’s quite literally the world’s highest valued company, having recently broken records when it became the first-ever business to surpass the $4 trillion valuation earlier this year.
So if anyone is going to be able to finance employees’ visa costs, it’s Nvidia. They’ve got the money, and they also have some of the highest numbers when it comes to non-American employees and H-1B visa holders. This move makes total sense for them, even if it is going to cost a pretty penny.
But, what about everybody else? What about the companies who simply can’t afford to throw around $100,000 for employees? Even those who are tremendously skilled and talented?
Will the H-1B Visa Fee Increase Domestic Hires Or Just Result In Financial Exclusion?
The supposed rationale behind the $100,000 H-1B application fee is to “protect” American workers by discouraging the hiring of foreign nationals. On paper, it sounds like a way to prioritise domestic employment. In practice, however, it risks creating a system where only the wealthiest companies can afford to participate in the global talent market, effectively turning immigration into a luxury good.
Smaller and mid-sized businesses, particularly startups that rely on specialised international expertise to compete, are the ones most likely to suffer. Many simply won’t be able to justify the financial burden of sponsoring foreign workers, no matter how valuable their skills are. The result could be a concentration of talent within tech giants like Nvidia, Google and Amazon, while innovative but less capitalised firms are locked out.
Rather than boosting opportunities for American workers, this policy could unintentionally widen the gap between large corporations and the rest of the industry. It may also drive top global talent to look elsewhere – to Europe, Canada or Asia – where immigration policies are more welcoming and financially feasible. In the long run, the US could lose the very edge it’s trying to protect.
So, what do the experts have to say?
Our Experts
- Saul Howerton: Head of Global People Advisory at Vistra
- Oliver Kent-Braham: CEO at Marshmallow
- Gillian O’Brien: General Manager, Recruit, at Remote
- Jan Hendrik von Ahlen: Managing Director and Co-Founder at Job Leads
- Marina Shepelsky, Esq.: CEO and Founder, Attorney at Shepelsky Law Group
Saul Howerton, Head of Global People Advisory at Vistra
“Sweeping changes to the H-1B foreign worker visa will have significant ramifications for corporate America and could reshape the US labor market. This week, many firms have been scrambling to assess the financial impact and ensure their international employees are not significantly unsettled by the announced changes, but there will be long-term implications too.
“Many companies, especially in fast-moving sectors such as artificial intelligence and advanced technology, may conclude that it is more efficient to build teams abroad than to import specialist talent, which could fuel a rise in nearshoring and offshoring. This provides companies with the added benefit of diversification, insulating them from the risks of relying too heavily on a single jurisdiction.
“Startups and smaller firms are the most exposed, as many will find it unviable to continue hiring foreign talent through H-1B visas. Larger firms may be able to absorb the increased costs, but could end up raising prices to protect their margins. Either way, the policy shift is set to accelerate a broader rethink of how US companies access the specialist skills they depend on.
“Firms can respond by reassessing workforce strategies, exploring alternative talent hubs and strengthening global mobility policies. Those that act early to diversify will be better positioned to secure the specialist skills they need, while maintaining resilience against future policy shifts.”
Oliver Kent-Braham, CEO at Marshmallow
“The recent US H-1B fee increase has created uncertainty for thousands of skilled professionals worldwide, many of whom are now reassessing where to build their careers. The UK has a real opportunity to become the destination of choice by reducing financial and bureaucratic barriers, offering fast, predictable visa routes and supporting high-skilled migrants as they settle.
“We must empower all newcomers and migrants, not just elite talent, by providing accessible financial services that help them navigate life in a new country. The Government’s consideration of reforms could be a pivotal moment to ensure we continue to attract the innovators, engineers, founders and wider migrant community who will contribute to the UK’s growth and prosperity in the years ahead.”
Gillian O’Brien, General Manager, Recruit, at Remote
“Businesses don’t have to rely on visas alone to solve talent challenges. By hiring talent across borders, companies can quickly access the skills they need without relocation. This expands the available talent pool while allowing workers to stay rooted in their local communities, contribute to their home economies and still participate in the global job market.
“Accessing skilled global talent also brings operational advantages, from around-the-clock collaboration across time zones to building stronger, more diverse and more resilient teams. Global hiring gives businesses the flexibility to find the right skills wherever they are while ensuring people are paid fairly at competitive market rates.
“Today, companies can streamline the entire process of international hiring, from compliant contracts and payroll to benefits and tax contributions, making global hiring both feasible and strategic. The real question for businesses is how quickly they are ready to embrace it.”
Jan Hendrik von Ahlen: Managing Director and Co-Founder at Job Leads
“1. I think NVIDIA’s decision is an important signal that top tech companies value top talent and see plenty of long-term value in it. This is sustainable for big companies in the long run – it’s a bet on innovation and competitive edge. The thing to be worried about here is that if such high investments in talent become the norm, the overall number of visa sponsors may decrease, concentrating opportunities in a few major players. This could result in less diversity and more limitations for foreign talent. However, the demand is sure to remain high when it comes to top players.
“2. I’m afraid this can strengthen “financial exclusion”. Startups usually operate on tight budgets, and such a huge visa fee can become a difficult barrier. For larger corporations known for hunting for top talent (like NVIDIA) such costs shouldn’t be a problem. This can result in a very uneven playing field. Access to top talent will be determined only by capital and not innovation.
“3. I imagine that for startups and smaller companies this will be an incentive to hire more local talent. And when the US market fails to cover a certain highly specific skill area, they might encounter a talent gap. Given that startups are often more agile, flexible, and open to remote work, I see them building teams outside of the US (no visa fees + potentially lower costs of employing people).”
Marina Shepelsky, Esq.: CEO and Founder, Attorney at Shepelsky Law Group
“This fee will drastically reduce opportunities for skilled workers abroad. Many U.S. companies may stop sponsoring H-1B visas altogether, shrinking legal pathways for foreign professionals and making it harder for them to pursue careers in the U.S.
“The $100,000 fee is a risky upfront investment that many smaller companies can’t afford. Since the fee is paid before the lottery even selects a candidate, only well-funded firms can take that gamble. This may sideline startups from accessing the global talent pool.
“With fewer immigrant professionals available, labor shortages and rising wages are expected. This could lead to a decline in the quality or availability of talent for smaller firms.
“This new executive order is a game-changer for the H-1B visa program. It puts unprecedented financial pressure on employers, making it harder than ever for skilled immigrants to pursue careers in the U.S. “
