Thu, 25 Sep 2025

Thu, 25 Sep 2025 'There's no way we can afford $100,000': Small firms scramble over H-1B visa fees

Startups and smaller firms could bear the brunt of Trump's new H-1B visa fee, and some fear it could thwart US innovation.
A recent executive order by US President Donald Trump has introduced a $100,000 fee for H-1B visa applications, which could have far-reaching consequences for businesses and innovation. Abhishek Singh, an Indian software engineer based in Seattle, was initially worried about having to relocate due to the new fee. However, a clarification from the White House suggested that the fee only applies to future applicants, not existing ones. The H-1B programme is often associated with large tech companies like Amazon and Microsoft, which have benefited significantly from it. However, smaller startups and firms beyond the tech industry also rely on the programme for skilled foreign workers. Experts warn that the six-figure fee could be crippling for these businesses, especially those in industries such as education and healthcare. Karen Brady, CEO of Ryther, a non-profit behavioral health organization in Seattle, said they cannot afford to pay $100,000 per visa application. Economist Atakan Bakiskan at investment bank Berenberg estimates that the new policy could reduce US growth from 2% to 1.5%. He believes that the brain drain caused by the policy will weigh heavily on productivity. Supporters of the change argue that major tech companies have the money to absorb the new charge. However, critics point out that policies making it harder for companies to hire skilled positions can prompt firms to offshore their operations instead. Elise Fialkowski, co-chair of the corporate immigration practice at Klasko Immigration Law Partners, said some clients are now considering hiring talent in other countries, such as Canada or the UK. Abhishek Singh is still considering leaving his startup due to uncertainty about future policies affecting immigrants. The new policy has sparked concerns about its impact on innovation and economic growth. As one expert noted, "These policies really don't have the intended effect of balancing the labour market competitiveness of American workers."
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