A significant policy shift has sent ripples of concern through the US tech sector, particularly among Indian professionals. Former US President Donald Trump recently signed an executive order introducing a hefty $100,000 fee for all new H-1B visa applications. Though clarified as a one-time charge, this decision has ignited widespread debate in tech hubs from Silicon Valley to Bengaluru, reshaping discussions around global talent. While the US government asserts this move aims to prioritize highly skilled candidates, the reaction from Silicon Valley’s influential leaders has been decidedly mixed.
Understanding the H-1B Visa Fee Controversy
The H-1B visa is a temporary, non-immigrant permit designed for US companies to sponsor highly skilled foreign workers, typically in STEM fields. It allows approved individuals to live and work in the United States for up to six years. Each year, the government imposes a cap, currently set at 85,000, on the number of new H-1B visas issued.
Historically, employers applying for an H-1B visa would pay a fee ranging from $2,000 (roughly Rs. 1.7 lakh) to $3,000 (roughly Rs. 2.6 lakh). However, the new executive order dramatically increases this cost, requiring a $100,000 (roughly Rs. 89 lakh) payment per application. This change significantly raises the financial burden for companies seeking to hire international talent.
Beyond the increased fee, the new policy also alters the existing wage level system. Previously, this system, categorized into four tiers, served primarily as a compliance mechanism to prevent companies from underpaying foreign workers. Under the updated regulations, higher-paid professionals in Category IV will gain a distinct advantage in the approval process, making it simpler for them to secure a visa. Conversely, this change will make it considerably more challenging for entry-level workers to obtain an H-1B visa.
This new regulation, effective September 21, applies to all subsequently filed visa petitions. The US government justifies the measure as an effort to prioritize highly skilled and higher-earning applicants, thereby preserving entry-level positions for American citizens.
Data from Pew Research indicates that a substantial 73 percent of approved H-1B applicants in 2023 were born in India, a trend consistent since 2010 where Indian workers have received the majority of approvals annually. Consequently, any new hurdles to visa petitions will significantly impact Indian professionals and the Indian IT companies that depend on their presence in the US.
Silicon Valley’s Divided Response
The announcement of the new H-1B visa rule immediately prompted a diverse range of reactions from prominent Silicon Valley executives and industry veterans. While some view the policy as a beneficial step, others caution that it could stifle innovation within the United States. Below, we examine the various perspectives shared on this contentious issue.
Nvidia CEO Jensen Huang adopted a notably neutral stance in his comments to CNBC, stating, "We want all the brightest minds to come to the United States. Remember, immigration is the foundation of the American dream, and we represent the American dream. And so I think immigration is really important to our company and is really important to our nation’s future, and I’m glad to see President Trump making the moves he’s making.”
OpenAI CEO Sam Altman voiced his support for the decision, telling the same publication, “We need to get the smartest people in the country, and streamlining that process and also sort of outlining financial incentives seems good to me.”
Netflix Co-Founder Reed Hastings also expressed approval of the Trump administration’s policy. In a post on X (formerly Twitter), he remarked, “I’ve worked on H1-B politics for 30 years. Trump’s $100k per year tax is a great solution. It will mean H1-B is used just for very high-value jobs, which will mean no lottery needed, and more certainty for those jobs.”
JPMorgan Chase CEO Jamie Dimon acknowledged the surprise the announcement caused, telling CNBC-TV18, “That caught everyone off guard.” He emphasized his belief in a merit-based immigration system and indicated he would appeal to President Trump to permit qualified individuals to work in the US, anticipating potential resistance to the new rule.
Venture capitalist and ‘Shark Tank’ personality Kevin O’Leary expressed strong concerns on LinkedIn, stating, “I think what this does is hurt innovation long-term. I agree that it’s going to push these really talented people into other countries. My attitude about this is if we educate you at MIT or at Harvard any school, we should give you a free ticket to stay here, get married, form a company, and build American businesses here. Why train them and kick them out?”
Royal Bank of Canada CEO Dave McKay, on the other hand, saw the new policy as a "material opportunity" for Canadian companies. He noted that while Canada attracts many foreign students for higher education, a significant number historically relocate to the US post-graduation.
Explaining his perspective to Bloomberg, McKay articulated, “So from India or from South Asia or from Europe, they’ll say, ‘Well, I can’t get into the US, but I want to move to North America, I’ll come to Canada.’ All of that presents a material opportunity if the rules remain the same.”