Trump’s H-1B Fee Hike Risks Undermining U.S. Tech Workforce, While Canada and Europe Stand to Benefit

According to Cailian Press on September 22, President Donald Trump signed a proclamation last Friday raising the employer-paid fee for H-1B visa petitions to USD 100,000. The administration asserts this increase is intended to ensure that the United States continues to attract only highly skilled professionals who cannot be readily replaced by American workers.

Although presented as a measure to safeguard domestic employment and national security, analysts warn that the fee escalation may severely disrupt the U.S. labor market—particularly for companies in California’s tech sector that depend heavily on skilled programmers, data analysts, and engineers recruited through the H-1B program.

One day after the announcement, the White House clarified that existing H-1B visa holders will remain unaffected and may travel freely, and that the new fee applies only to the next lottery cycle, not to renewals or current visas. Nonetheless, the clarification has done little to allay fears among visa beneficiaries.

Major technology firms are now reevaluating their hiring strategies. Google, Apple, and Meta Platforms collectively employ thousands of H-1B workers, while universities from Stanford to the University of California system rely on H-1B researchers and lecturers to maintain their academic and research missions.

For international graduates, the H-1B visa is often the only viable route to remain in the U.S. upon completing a degree. The annual cap stands at 85,000 visas—20,000 of which are reserved for advanced-degree holders from American institutions—but applications routinely far exceed that limit, with over 470,000 petitions filed in the fiscal 2025 lottery.

Immigration attorney Karin Wolman of New York characterizes the timing of the fee increase as “designed to sow chaos.” She contends that tying visa costs to arbitrary rates rather than actual processing expenses violates legal norms and bypasses required public-comment procedures. Wolman warns that the policy will shut out entry-level talent and confine H-1B eligibility to large, well-funded employers, inflicting “devastating” harm on startups, non-profits, universities, hospitals, and other smaller organizations.

Y Combinator CEO Garry Tan criticized the policy on X, describing it as “a heavy blow to startups” and “a massive gift to overseas tech hubs” such as Vancouver and Toronto. He argues that erecting a “USD 100,000 toll booth” runs counter to America’s need for nimble, innovation-driven companies to compete in the global AI race.

In response, Goldy Hyder, President of the Business Council of Canada, urged his country to redouble efforts to attract the skilled tech workers that the U.S. may now forgo. Alex Tapscott, Managing Director of the Digital Asset Group at Ninepoint Partners in Toronto, summed up the sentiment succinctly: “America’s loss could very well become Canada’s gain.”

European technology leaders have voiced similar optimism. Adrien Nussenbaum, Co-founder and Co-CEO of French tech unicorn Mirakl, called the U.S. policy shift “a huge opportunity for Europe’s tech sector,” one that will bolster the continent’s ability to lure top global talent and reinforce its standing as an innovation powerhouse.