Small Employers Say $100K H-1B Fee Could Shut Down Hiring Plans

President Donald Trump recently signed an executive order imposing a $100,000 application fee for new H-1B visas, significantly raising the cost for companies seeking to hire skilled foreign workers.

The White House later clarified that the fee applies only to future applicants. However, the announcement has unsettled employers and current visa holders, many of whom are concerned about the broader direction of US immigration policy. Abhishek Singh, a software engineering manager in Seattle, said the move raised fears of future restrictions, even though he is not directly affected. 

“There’s uncertainty now that anything can happen in the future,” he said.

The H-1B visa programme is widely used by technology firms, healthcare providers, universities, and other sectors to recruit international talent. In the first half of 2025, Amazon received more than 10,000 H-1B approvals. Microsoft, Meta, Apple, and Google also secured thousands each. 

While large corporations may be able to absorb the additional cost, smaller businesses and startups say the new fee could make it financially impossible to hire skilled foreign staff. John Skrentny, a professor at the University of California, San Diego, warned that the measure could harm innovation. 

“If you’re a startup with new technology and limited capital, this could kill you,” he said. 

In the healthcare sector, which continues to face staff shortages, the fee could reduce access to professionals who offer essential cultural and language skills. Karen Brady, CEO of Seattle-based nonprofit Ryther, said her organisation would no longer pursue H-1B hires. 

“There’s no way that we can afford $100,000,” she said.

Economists also warn of broader consequences. Atakan Bakiskan, an economist at Berenberg, lowered his forecast for US economic growth, linking the decision to a trend of policies that could shrink the labour force and reduce productivity. He added that the visa changes could contribute to a brain drain, limiting the country’s access to top global talent.

Supporters of the policy argue that the high fee will discourage misuse of the H-1B system, which they claim has been used to undercut wages. The Trump administration has also proposed changes that would prioritise higher-paid applicants. Netflix co-founder Reed Hastings backed the fee, describing it as a “great solution.” 

Others note that large corporations are likely to manage the added cost without difficulty. However, critics warn the new rules may lead companies to move jobs overseas. Elise Fialkowski, an immigration lawyer, said some of her clients are already exploring relocation to countries such as Canada and the United Kingdom.

“Trump’s executive order almost begs companies to offshore work,” she said.