Donald Trump’s administration has been spearheading this regressive policy, loading expensive fees on H-1B work visas. This decision has raised great alarm among those who wish to come to the United States to further their careers. The announcement, released very quietly on a Friday, has already sent shockwaves throughout the professional community. Chinese talent—and they still are the ones who benefit the most from the visa program—seem to be feeling the pinch the most.
The policy calls for an increased, one-time fee of $100,000 for those applying for a new H-1B visa. This cumbersome fee, applied per petition, has created industry-wide concern about the fate of temporary high-skilled talent in the U.S. The administration aims to raise prevailing wage levels in order to “upskill a narrow band of elite, high-compensation jobs,” a move that has left many questioning the impact on their employment prospects.
The announcement sent shockwaves over the weekend, while industry experts and advocates began to realize the impact of the new policy. As pointed out by Gary Cohn, Vice Chairman at IBM, what’s changed is that first panic has passed.
“It caused a panic over the weekend because people weren’t sure what was going on with the existing H-1B visas. It’s been cleaned up over the weekend so at this point there’s not a panic in the system.” – Gary Cohn
The ramifications of such a policy go far beyond a single applicant. All types of employers–from large corporations to startups to mid-sized firms–will have to find new ways to hire for this changed landscape. As Akshat Divatia points out, for those still waiting on their first H-1B to make it through, this new fees represent a substantial hurdle.
“For those waiting for their first H-1B to be filed, the new fee creates a steep and immediate barrier.” – Akshat Divatia
Firms that for years have depended on H-1B visa holders are now confronted with difficult choices. Amazon, for example, used more than 14,000 H-1B visa holders as of June 2023. Not far behind are other major tech firms including Microsoft, Meta, Apple and Google each with more than 4,000 H-1B visas.
This drastic policy change would have a chilling effect on the innovation ecosystem by disproportionately harming smaller companies and startups. As Divatia explains, “For large multinationals, that might mean shifting more work offshore or limiting U.S. sponsorship to only the most senior or specialized roles. For startups and mid-sized firms, many of whom already stretch to cover legal and filing fees, the price tag may take H-1B hiring off the table altogether.”
As the U.S. continues to shift its immigration policies, international students are reconsidering their options. The total number of Chinese students studying in the U.S. has in the past year dropped off a cliff. It dropped from roughly 373,000 in 2019 to approximately 277,000 in 2024. As a result, millions are looking to switch to other markets like Hong Kong and Singapore for their education dreams.
India continues to be the biggest beneficiary of H-1B visas, with 71% of approved visa holders last year. China comes in a distant second at 11.7% of all their awards. Increased restrictions in U.S. visa policy may lead some prospective Chinese students to forgo education or employment in the United States. That change would undo one of the few bright spots alluded to by their enormous negative value added to American economic dynamism.
Immediate and longer-term issues are raised by these changes. Many experts believe they could be key pieces of a broader plan to shore up the U.S. workforce. It is important to note, as Cohn made clear, that the goal of such provisions is to attract highly-skilled people who will create jobs and drive economic growth.
“Ultimately we’re going to bring high skilled people in the United States. It’s going to help grow our economy, and that’s good for all of us.” – Gary Cohn
Not everyone shares this optimistic view. Lin went on to address how damaging more Trump policies like the travel ban have been to our student body and their families.
“Trump’s erratic policies have made students and parents more cautious and anxious when planning their studies, but many have also realized his threats often sound more dramatic than they actually are.” – Lin
We know that the reactions are happening all around us at breakneck speed. It’s evident that experiences like this can have profound, life altering, career redirecting impact. Emily from New York reflects on this reality:
“Moments like this showed how the chaos in the world can upend individual lives at any time.” – Emily in New York