Trump’s $100,000 H-1B Visa Fee Reshapes Tech Hiring, Strains Startups

Immediate Impact on Tech Hiring and Talent Pipelines

Nearly a month after the implementation of a surprise executive order from President Donald Trump requiring $100,000 payments for new H-1B visa recipients, the policy is reportedly disrupting high-tech talent pipelines across the United States. According to reports from recruiters and entrepreneurs, the restrictions are already slowing hiring and shrinking the talent pool for small businesses and venture-backed startups.

The executive order signed September 19, 2025 introduced what analysts suggest is the most significant change to the H-1B system in decades. The administration stated the measure aims to give American workers advantage and end system abuse by requiring companies to pay $100,000 for each new visa application. Sources indicate that more than 60% of H-1B workers are in computer-related fields with median annual salaries of $123,600.

Venture Capital Response and Startup Concerns

Some prominent venture capitalists have begun publicly negotiating for modified terms that would accommodate early-stage companies. According to reports, billionaire investor and LinkedIn founder Reid Hoffman has advocated for charging true startups “a much lower fee than larger tech enterprises, perhaps in the tens of thousands of dollars” during a recent episode of his “Possible” podcast. Hoffman reportedly noted these are H-1B visa reform ideas he has supported for years.

The regulatory burden appears particularly challenging for emerging technology companies. Somak Chattopadhyay, founder of Armory Square Ventures and member of New York State’s Emerging Technology Advisory Board, told sources that “for the highly specialized talent in the world of AI, there’s probably like 500 people in the country that understand how to build an LLM model from the ground up. We don’t have enough talent domestically to fill some of those roles.” The report states his fund’s startups have historically relied on international talent markets to find top thinkers.

Workforce Development Shifts and Corporate Adaptation

Despite the challenges, analysts suggest the restrictions are having some intended effects as companies begin seeking alternative talent strategies. According to reports, businesses are increasingly focusing on upskilling existing workforces and building new talent pipelines through American universities and large companies.

Entrepreneur Eva Yao, founder of Boulder, Colo.-based Flari Tech and a former H-1B recipient herself, reportedly told CNBC she has already advised job seekers to target large companies that might be able to absorb the substantial visa fee. This trend suggests highly skilled immigrants are shifting their job focus toward established corporations with greater financial resources.

Broader Immigration Context and Future Outlook

The new H-1B fee arrives alongside other immigration restrictions affecting foreign students at American universities and additional regulatory burdens on employers. According to the regulatory agenda, these changes represent part of a broader immigration policy shift.

While the immediate impact has created hiring challenges, some observers suggest the policy may accelerate domestic technology education and training initiatives. However, sources indicate that for highly specialized fields like artificial intelligence, the domestic talent pipeline remains insufficient to meet current demand, potentially creating competitive disadvantages for American companies in global markets.

The situation continues to develop as stakeholders negotiate potential modifications to the policy. According to analysts, the coming months will reveal whether the $100,000 fee achieves its stated objectives of protecting American workers while maintaining the United States’ competitive edge in technology innovation.