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
- Amanda S.Brill: Founder and Managing Partner at Brill Immigration
- Arjun Mahadevan: CEO and Founder at doola
- Dr. Nathan Mondragon: Chief Innovation Officer at Hirevue
- Ben Johnston: COO of Kapitus
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. “
Amanda S.Brill, Founder and Managing Partner at Brill Immigration
“Businesses have been reminded of how vulnerable their global talent pipeline is to politics. These “Friday night Frights” that are so common with this administration undermines confidence and will push innovators to look elsewhere.
For decades, the US has been the magnet for the world’s brightest minds. If that magnetism is replaced with uncertainty and cost, it’s not just H-1B workers who suffer – it’s America’s ability to stay competitive in healthcare, tech and culture.”
Arjun Mahadevan, CEO and Founder at doola
“For startups and fast-growth companies, the ability to recruit global talent via H-1B visas has often been a crucial lever to scale. Now, this lever is in jeopardy, as startups are looking at higher fees, stricter compliance requirements and tighter eligibility rules. These changes will make headcount planning, compensation modeling and budgeting much more complex.
“Nvidia has the resources to take on this extra burden, but many smaller companies do not. Are startups going to stop hiring foreign talent altogether? No. Will this push startups to both look at non-traditional U.S. talent as well as explore alternative, less expensive, visas for foreign talent? Definitely yes.”
Dr. Nathan Mondragon, Chief Innovation Officer at Hirevue
“In the short term, these changes will make it harder for companies to access skilled workers through the H-1B program. Higher costs and stricter eligibility could deter employers and candidates alike, with some skilled workers opting for opportunities in other countries. Longer term, however, if companies use this moment to recalibrate—by paying more competitive wages, investing in training, and refining their understanding of the skills that drive business outcomes—there is potential for a more sustainable and skills-aligned approach to hiring.
“Another long-term impact to consider with these restricted visas is the potential to negatively impact skilled labor creation within the United States whereby second and third generation talent is reduced. Meaning the top skilled visa talent will live and raise their families in other countries.
“There has been bipartisan support for the traditional H1-B visa program, especially with technical roles and for new technical and science college graduates. We might experience a brain drain in the US starting with fewer foreign students choosing to study and get their degrees from US universities. This then has a snowball effect on fewer skilled workers already residing in the US that opt to work in other countries or the countries from where they received their university degrees.
“The Trump administration’s announcement of a $100,000 application fee for new H-1B petitions, alongside a shift to weight registrations toward higher wages and higher-skilled roles, will have significant implications for employers. The immediate effect is that the cost of hiring skilled foreign talent will rise dramatically, particularly for startups and mid-sized companies that depend on specialized skills but may not have deep resources. At the same time, the new wage-based criteria could push employers to reconsider how they define and compensate critical roles. Compliance obligations will also become more complex, requiring a sharper focus on documentation and job design.
“Ultimately, this underscores the need for companies to adopt a skills-based approach to hiring. When employers clearly define the skills that matter most, they can expand their candidate pools by looking beyond traditional degree requirements, tap into overlooked U.S. talent, and invest in internal development programs. At the same time, visas remain an essential piece of the puzzle, especially for highly specialized roles where domestic supply is limited. The healthiest workforce strategies balance near-term solutions, such as upskilling and reskilling, with medium- and long-term investments in talent pipelines, while recognizing that global mobility will remain part of the equation. Skills shortages require all of these levers working together.
“There is a case to be made that these changes could create more opportunities for U.S. workers. As the cost of hiring internationally rises, companies may invest more heavily in upskilling domestic talent or look first to local candidates to meet their needs. Yet there is also a real risk that if skilled foreign workers become harder to access, innovation and growth could slow, leading to fewer jobs overall. In some cases, businesses might even shift work abroad or hire remote workers outside the U.S., limiting the intended benefit to the domestic workforce.”
Ben Johnston, COO of Kapitus
“We don’t expect the federal government’s decision to charge $100,000 for each new H-1B visa to have a significant impact on small or medium sized businesses. The primary applicants for these visas are concentrated in the world’s largest technology and consulting firms. We expect that these firms can afford to pay the fee if it means accessing top talent that they have difficulty finding in the U.S.
“But given other changes to the program that award higher wage earners a greater likelihood of selection, we expect to see a shift in the visas awarded toward older, more experienced applicants. This could have an impact on US universities which in recent years have grown their enrollment of international students. Many international students come to US schools with the expectation that they will be able to work here under the H-1B program upon graduation. If fewer visas are available for lower-wage earners, this may curtail the demand for a US education for some international students.”
