In its 2018-9 budget proposal, the Trump administration has proposed raising the H-1B visa application fee by nearly 1000 percent. In their defense, they have raised the fee to $100,000 to save American jobs and prevent what they call abuse of the program. Former President Donald Trump signed this executive order on Sep 19, 2025, in the Oval Office. Today, it has brought forth a fresh wave of conversation around talent acquisition strategies in the wake of increasing expenses and ever-expanding competition from abroad.
The administration claims that the H-1B visa program is a threat to our economic and national security. Accordingly, they’ve chosen to increase the fees. Fiscally conservative lawmakers have made it more difficult for companies to hire the skilled foreign workers they need. This has increased the urgency among nations and cities in the global race for talent.
Europe is using its better work-life balance as a competitive edge in the race to attract skilled talent. Recent research indicates that factors such as quality of life have gained prominence among employees worldwide, surpassing salary as a top priority. European nations would benefit from this change. They can continue to attract the skilled workers who are today rethinking their future options thanks to H-1B fee spikes.
Meanwhile, the UK is considering major reforms to its immigration system. Newly elected Prime Minister Keir Starmer is moving quickly to implement proposals that would remove fees for international superstars to come. This possible move follows the demands for radical talent visa reform, spelled out by people like 20VC’s Harry Stebbings. He underscored that more than 30 would-be entrepreneurs from the U.S. have already reached out to him. They want to move to London after hearing the news of the fee increase.
“We are in a global war for talent,” – Harry Stebbings.
Stebbings wanted to understand more about the competitive landscape. He noted that competitors’ cities such as Dubai and Milan offer seductive tax incentives and create business-friendly ecosystems. He cautioned that the UK risked making itself less attractive to entrepreneurs. He argued that it at the moment sends the impression of being “closed for business.”
“No, because we’ve hung a sign up that says ‘closed for business,’” – Harry Stebbings.
Paul Achleitner reinforced these signals. He noted that Europe’s enviable quality of life was an important part of their success in recruiting skilled foreign workers.
“If there’s one thing we have in Europe, it’s quality of life. And you know, I don’t have to elaborate on that, from social systems to healthcare systems to educational systems,” – Paul Achleitner.
The UK government has recently increased the salary and skills thresholds for its new-style “Skilled Worker” visas. This amendment would worsen the environment for talent acquisition for startups. Stebbings made a case for why London is uniquely positioned to become the world’s next hub for entrepreneurs. He cautions that prevailing policies could stand in the way of that growth.
“Why would you come and build here, when Dubai hangs up an ‘open for business’ sign, with zero percent capital gains and everything you could ever dream of? They sell a dream,” – Harry Stebbings.
The evidence from European leaders indicates a desire to get ahead of the curve and improve their attractiveness as places for business. In this race for talent, there is an ever-increasing agreement among industry stakeholders that policy is what really counts. Peter Specht, EU4Digital’s thematic leader on e-services, emphasised the need to make Europe an appealing place for startups and founders.
“It’s also a reminder that policy matters, and that we should be doing everything we can to establish Europe as a highly attractive place for founders and startups,” – Peter Specht.
As employers begin to adapt to these changing realities, they need to align their talent pipelines with much more specificity. Louise Haycock picked up on the point that employers want some stability in their workforce planning in these very fluid and uncertain conditions.
“And that is really liked by employers because it does give them the certainty that they need to be able to plan that talent pipeline,” – Louise Haycock.