How the $100,000 H-1B Visa Fee Could Reshape America’s Workforce and Economy

President Donald Trump signed an executive order about H-1B visas at the White House on Friday, Sept. 19, 2025. (Aaron Schwartz/CNP/Bloomberg/Getty Images). Courtesy of Fox News.

On September 19, 2025, President Donald Trump issued a presidential proclamation, stating that the federal government was seeking significant changes to the H-1B visa system. Among the major overhauls that were introduced were the introduction of a $100,000 fee for applicants to the visa program for specialty occupation workers. 

In the justifications Trump used to support these changes were contentions that the visa system was being abused by employers in select sectors to artificially suppress wages. The administration argues that this undercuts job opportunities for American citizens in favor of foreign labor, and creates difficulties in attracting and retaining talented foreign skilled workers. Trump claims that the current statute of the visa program would affect critical industries in the science, technology, engineering, and math (STEM) fields.

The H1-B visa is a classification of a worker visa available to non-U.S. citizens. The visa allows employers in fields that require “specialized knowledge or abilities” to attract and employ workers important to the company’s needs. According to the U.S. Citizenship and Immigration Services (USCIS), the general requirements to be eligible for the visa include having an expert understanding of specialized theory and application, and the attainment of a bachelor’s degree or higher in a field that is directly related to your studies. 

While the visa is theoretically open to applicants in a wide variety of fields, an overwhelming majority of H1-B visa holders are in the tech sector. About 65% of workers approved in the 2023 fiscal year were employed in computer-related fields, according to a Pew Research Center report. Examples of occupations included  are those in systems analysis, programming, technical support, and data networking. The average reported median salaries of these workers was $123,600.

Currently, the U.S. government caps the number of H1-B applications approved per year at 65,000, with an additional 20,000 slots reserved for applicants holding a master’s degree or higher. Universities, nonprofit organizations, and government research organizations are exempt from this cap. Previously, the total amount of administrative fees associated with a petition for an application was around $1,500. With the new modifications effective starting September 21, 2025, the new fee of $100,000 per applicant represents a nearly 67-fold increase in the amount of fees required per petition filing. 

The moves by the Trump administration regarding H-1B reforms have unnerved the business community, especially Big Tech firms, sounding the alarm about the damage caused by the new policies. Among the top 10 employers of H-1B visa holders are numerous Big Tech firms, notably Amazon, the largest employer of H-1B visa holders, followed by Google (fifth largest), Microsoft (sixth), and Meta Platforms (eighth) which owns Facebook and Instagram. 

Among those in the business community who have criticized this decision include “Shark Tank” star Kevin O’Leary, warning that the $100,000 application fee would be detrimental to American companies. In an interview with Fox Business, O’Leary claimed that, “Apple, Oracle, Google all started in a garage. They could not have afforded to do this. And all of those companies took advantage of talent they couldn't find in the United States as they grew.”

Additionally, the policy has impacted many within the international student population. A large proportion of international students utilize the visa program to remain in the U.S. after completing their studies, especially those pursuing degrees at a U.S.-accredited higher education institution. The impact of the new policy will be felt most sharply by Indian students, who comprise one in four international students in the U.S. Notably, Indians have made up over 70% of visa holders in recent years, followed by China at 12%.

Despite fueling anxieties and consternations, particularly among the business community and the international student population, Trump’s actions have received some notable support, including from former White House chief strategist Steve Bannon and Vice President JD Vance.

During a podcast episode of “Bannon’s War Room,” Bannon blasted the H-1B visa program, boldly proclaiming that America does not need any international students, and thatStudent visa holders should not be given more than 30 days to remain in the country after being given their diploma. Rather than having the H-1B visa be a viable pathway towards obtaining a Green Card, the alternative should instead be an exit visa mandating their leave.

Similarly, Vance also heavily criticized the visa program. Speaking at an event co-hosted by the Hill and Valley Forum, a group that was founded in March 2023 by a host of American lawmakers and venture capitalists. Vance launched a scathing critique of Microsoft, accusing the tech company of laying off American workers while refilling the occupational roles with foreign skilled labor through the H-1B visa program. Vance remarked, “You see some big tech companies where they'll lay off 9,000 workers, and then they'll apply for a bunch of overseas visas. And I sort of wonder; that doesn't totally make sense to me.”

Regarding the economic ramifications of the new H-1B visa policy, most economists agree that the H-1B is a net boon for the U.S. economy as it creates new job opportunities for American workers. Economists argue that the H-1B visa system primarily benefits the U.S. in five ways.

Firstly, economists argue that, given American and foreign workers often have different skill sets, they fill different types of jobs rather than being in direct competition with each other in the job market. The H-1B visa system complements the U.S. labor market as it allows corporations to hire foreign skilled labor for occupations that native-born workers lack sufficient training or necessary qualifications for. American workers can instead be employed in other specialty fields.

Second, immigrant workers spend and invest their wages into the U.S. economy. This, bolsters local businesses, with an estimated $76.7 billion spent annually by H-1B recipients on goods and services. Immigrant workers also pay taxes to the federal government. According to economic data compiled by Stilt, a San Francisco-based financial services company, H-1B visa holders paid an average of $85 billion in annual income tax. This includes $21.97 billion to Social Security and $5.14 billion to Medicare annually.

Third, businesses benefit from the presence of immigrant workers because they represent an opportunity to expand their consumer base, rather than searching for markets abroad. Fourth, immigrants are often at the forefront of entrepreneurship. A study conducted by the Washington, D.C.-based nonprofit American Immigration Council shows that nearly half of Fortune 500 companies in 2025 were founded by immigrants or the children of immigrants.

Fifth, since immigrant workers often generate new ideas and innovations in the corporate sector, employment opportunities may increase for native-born workers. This is a possible explanation for the relatively low unemployment rate in occupations that employ a large number of H-1B visa holders.

Even after the Trump administration’s attempts to further clarify and define the scope of the new statute, many questions still remain regarding the specifics of implementing the new visa policy for H-1B. While the new policy directives have generated spirited debate regarding Trump’s actions, it is undeniable that the economic ramifications of the policy will reverberate for years to come. 

Shortly after Trump’s announcement, China introduced a new type of visa, dubbed the “K Visa,” designed to attract skilled foreign professionals in the science and technology fields, which has been popularly referred to as “China’s H-1B.” As the global tech race between China and the U.S. heats up, it remains to be seen what the long-term economic and political implications of the changes to the H-1B visa system will be.