trump administration's new h-1b visa fee: tech giants brace for impact
washington, Saturday, 20 September 2025.
the trump administration has introduced a $100000 annual fee for h-1b visas, a move that’s sent shockwaves through the tech world. companies like amazon, microsoft, and meta, major beneficiaries of the program, are now facing increased costs and potential talent shortages. commerce secretary howard lutnick stated the goal is to incentivize hiring american workers. the policy has also sparked debate, with some experts warning it could stifle innovation and drive jobs overseas. on the other hand, to fast track visas, trump also created a ‘gold card’ for $1 million.
immediate market reactions
The announcement triggered immediate market reactions, particularly for companies heavily reliant on the H-1B visa program [2]. Shares of Cognizant Technology Solutions Corp, Infosys, and Wipro experienced declines, closing between 2% and 5% lower [2]. This immediate downturn reflects investor concerns about the potential impact on these companies’ operational costs and their ability to secure talent [2]. The increased expense associated with H-1B visas could squeeze profit margins and potentially force companies to reassess their hiring strategies [3].
winners and losers in the tech landscape
The policy’s impact will likely vary across the tech landscape [3]. Companies with a larger proportion of H-1B visa holders may face greater challenges compared to those with a more domestically-focused workforce [3]. While firms like Amazon, Microsoft, and Meta have the resources to potentially absorb the increased costs, smaller companies and startups could struggle to compete for talent [2][3]. This could lead to a consolidation of talent within larger corporations, potentially stifling innovation and competition in the long run [3].
the lure of the ‘gold card’ immigration pathway
Adding another layer, the Trump administration introduced a ‘gold card’ immigration pathway, offering expedited visas for foreigners willing to pay a hefty fee [1]. Individuals can gain entry by paying $1 million, while companies can sponsor workers for $2 million [1]. Commerce Secretary Howard Lutnick framed this as a way to attract ‘extraordinary people at the very top’ [1]. This two-tiered system raises questions about equity and accessibility, potentially creating a divide between companies that can afford the premium option and those that cannot [1].
expert opinions and long-term consequences
Experts are divided on the long-term consequences of this policy [3][6]. Deedy Das, a partner at Menlo Ventures, argues that the new fee ‘creates disincentive to attract the world’s smartest talent to the U.S.’ [2][3]. EMarketer analyst Jeremy Goldman suggests that while Washington may see a short-term revenue boost, the U.S. risks ‘taxing away its innovation edge’ [3]. Conversely, Commerce Secretary Lutnick contends that the policy will encourage companies to ‘train Americans’ and prioritize domestic talent [2][3]. The ultimate impact on the U.S. tech sector and its global competitiveness remains to be seen [6].