The U.S. tech industry is facing significant pushback against President Trump’s newly announced executive order that would impose a substantial $100,000 fee on H-1B work visas, with startup founders and venture capitalists warning the move could severely impact American innovation and competitiveness.
The executive order, revealed Friday, would add the unprecedented surcharge to visa applications for foreign workers in specialized fields like software engineering and data science. The Trump administration states this measure aims to prevent H-1B program abuse while ensuring visas go to only the most qualified candidates.
Currently, companies pay several thousand dollars in fees and legal expenses for each H-1B application. The addition of a $100,000 fee represents a dramatic increase that many argue could reshape hiring practices, particularly for startups with limited resources.
Outreach co-founder Manny Medina, who recently moved to London, expressed concern that the policy could drive talent to other tech hubs like Toronto, Vancouver, and London. “Early teams can’t swallow that tax,” noted Garry Tan, CEO of Y Combinator, highlighting the particular burden on emerging companies.
The impact could be especially significant in the Seattle region, where major tech employers like Amazon and Microsoft rank first and third respectively in H-1B visa approvals this year. Amazon received 10,044 approvals while Microsoft had 5,189. Other tech giants with substantial Seattle presence, including Meta, Apple, and Google, are also among the top visa sponsors.
Seattle’s tech ecosystem has strong ties to international talent, particularly from India. The region hosts one of America’s largest Asian Indian populations, with previous reports indicating that over 40% of foreign-born IT workers in the Seattle area are from India.
Xiao Wang, CEO of Seattle immigration startup Boundless, warned the policy could undermine America’s position as a global innovation leader. “The U.S. has built its leadership in technology and innovation by making itself the destination of choice for the world’s top talent,” Wang wrote in a blog post.
Both Amazon and Microsoft have already issued travel advisories to their visa-holding employees, recommending restricted international travel and prompt return to the U.S. However, Axios reports the new fee would not affect existing H-1B holders.
Legal challenges to the order are expected, according to immigration experts. Boundless noted that new visa fees typically require either congressional legislation or a formal rulemaking process with public comment periods. Seattle-based immigration startup Casium emphasized the evolving nature of the situation, noting implementation details will depend on agency actions, court responses, and additional guidance.
The development comes amid broader tensions around U.S. immigration policy affecting the tech sector, with companies and industry leaders increasingly vocal about the potential consequences for American technological leadership and economic growth.