'Trump’s $100k H-1B tax is a great solution,' says Netflix co-founder Reed Hastings

Netflix

Netflix co-founder Reed Hastings has backed Donald Trump’s recently announced $100,000 fee on new H-1B petitions, a stance that runs counter to the view held by most major US technology companies. Hastings wrote on X that the higher cost would keep the programme focused on high-value positions and remove the need for a lottery system.

Policy context and industry disagreement

The H-1B programme allows US companies to hire foreign workers in specialised roles, with 85,000 slots available despite more than 400,000 applications. Nearly half of applications are for science and technology roles and a substantial share target salaries at or below $100,000. Large technology firms have opposed the fee, warning that the cost will constrain hiring flexibility and shift work outside the United States.

Political significance of Hastings’ support

Hastings’ endorsement is notable because he is a long-time Democratic donor and has publicly criticised Trump in the past. His support diverges from senior technology voices, including Elon Musk and executives at Amazon, Google, Microsoft and Tesla, who have warned of negative effects on recruitment and innovation.

Clarification from the White House

Hastings described the charge as an annual tax. White House Press Secretary Karoline Leavitt later clarified it is a one-time fee applied to new petitions starting with the March 2026 lottery, not to renewals or current holders. The clarification followed reports of companies advising H-1B staff to remain in the US until details were confirmed.

Impact on startups and early-stage employers

Larger firms may be able to absorb the cost, but founders and investors warn early-stage companies could be priced out of hiring international specialists, reducing financial runway. Industry groups say the measure could consolidate hiring power among resource-rich incumbents and accelerate the relocation of specialised workstreams offshore.