Leaders and investors across the U.S. technology landscape are sounding the alarm over a new White House proclamation that introduces a formidable $100,000 annual fee for H-1B visas. The move, championed by President Donald Trump, is being widely condemned as a direct attack on the industry’s ability to attract the world’s top talent and maintain its global leadership in innovation.
The sentiment was captured by Deedy Das, a partner at venture capital firm Menlo Ventures, who wrote that the fee “creates disincentive to attract the world’s smartest talent to the US.” This view is shared by many in Silicon Valley who believe that the flow of highly skilled immigrants is the lifeblood of the tech ecosystem. They argue that this policy will not only harm established companies but also cripple the next generation of startups.
The administration, however, remains resolute in its “America First” approach to the labor market. Commerce Secretary Howard Lutnick dismissed concerns, stating that the fee would ensure that only the most “valuable” individuals come to the U.S., forcing companies to hire Americans for other roles. “Stop the nonsense,” he said, accusing companies of using the program to fill jobs that could go to U.S. graduates.
The H-1B program is a critical pipeline for tech giants. In the first half of 2025, Amazon, Microsoft, and Meta collectively had over 20,000 H-1B visa approvals. The new fee would add billions to their operational costs, potentially leading to hiring freezes or the relocation of research and development divisions to more welcoming countries.
The policy also raises questions of fairness and legality. Immigration advocates and legal scholars argue that the proclamation is an unconstitutional power grab, as Congress has reserved the right to set the terms for immigration fees. As the tech industry mobilizes to fight the measure, the future of American innovation hangs in the balance, caught between a protectionist labor policy and the global race for talent.