The announcement of a massive new fee for H-1B visas will greatly impact every single industry but some more than others. By slapping a $100,000 price tag on foreign talent, the Trump administration has demonstrated a profound and dangerous misunderstanding of what makes the U.S. technology sector a global leader.
This is nothing less than a self-sabotaging, politically motivated decision that will drive the world’s brightest minds and most promising startups straight into the arms of our competitors in Canada, India, and China.
The fact that this move was rolled out with such disorienting chaos (forcing clarifications about whether the fee would be annual or one-time) only emphasises its incompetence and contempt for the thousands of individuals whose lives hang in the balance.
This policy is a brazen act of hypocrisy from an administration that claims to be pro-business. The tech industry, a key contributor to Trump’s campaign, is now the primary target of a policy that could cost them billions. This isn’t just about big corporations like Microsoft and Amazon, which can absorb the costs; it’s a death blow to the startups that rely on a small number of key foreign engineers to get off the ground.
These companies, the future titans of American business, are now being told they’re not welcome to compete. The argument that this policy will attract only “very high value jobs” is a hollow, short-sighted perspective. Innovation doesn’t just come from a handful of established geniuses it rather thrives on a vibrant, diverse ecosystem of ambitious, hard-working people—many of whom begin their careers as H-1B holders. The “brain drain” that economists from Berenberg and leaders like Andrew Ng warned about is no longer a future threat; it is an imminent reality.
A smarter, more strategic approach would involve a suite of reforms designed to attract and retain the world’s best talent. We need to create a Startup Visa specifically for foreign-born entrepreneurs who can secure a certain amount of venture capital funding and commit to creating a minimum number of American jobs.
This would turn aspiring founders into job creators, a direct boon to the U.S. economy. Furthermore, there should be an establish a streamlined path to a green card for all international students who graduate from American universities with STEM degrees.
