How companies might avoid Trump’s new $100,000 visa fee

Employers are already calculating the effect. Some are considering freezing H-1B hires, and others may risk filing requests and attempting to circumvent the fee. "This creates enormous uncertainty," said one immigration attorney, adding that companies are having difficult choices among passing on the cost, rethinking staff hiring strategy, or looking to recruit abroad. Pressure is particularly acute for small companies, start-ups, and nonprofits with less access to financial buffers than giant multinationals.

The rise in offshoring

One likely response is an offshoring boom. Economists call the early 2000s, when reductions in H-1B visas prompted companies to open more foreign offices. India and China became hotspots for back-office services, engineering, and computer helpdesks. Experts believe history might repeat itself, with US firms stretching out in Bangalore, Hyderabad, or Shenzhen instead of hiring in Silicon Valley. Canada would also benefit, with streamlined immigration routes already drawing tech talent. Additional funds are required to build foreign subsidiaries, which are best placed in larger companies, while small employers may utilize third-party contractors abroad.

Remote work as the long-term solution

The pandemic established remote working as the new standard, and firms may increasingly be utilizing dispersed teams. Firms that match businesses with global software engineers and experts are seeing renewed interest. Carrol Chang, formerly an Uber executive who now runs an international talent marketplace, described remote hiring as a "borderless solution." When visa limitations make working in the U.S. impossible, businesses are able to get the talent they need without relocating the workforce. For some, this will be a likely best and cost-efficient adjustment.

Seeking out other visas

Other visa categories are being considered by employers as well. The O-1 visa for individuals of "extraordinary ability" is twice as prevalent since 2020, with nearly 20,000 issued last year. While the bar is higher—it calls for evidence an applicant is among the best in his/her field—it offers a vehicle for leading scientists, engineers, and artists. TN visas allow Canadians with Mexicans to work under the USMCA, and the H-1B1 allows citizens of Singapore and Chile. The E-1 and E-2 treaty visas allow nationals from countries like the U.K., France, and Germany to qualify if they work for treaty-based companies, but notably they exclude India and China. There is an E-3 visa for Australians, and the L-1 visa permits intracompany transfers for foreign executives and specialists who have at least one year of foreign work.

Using student programs and extensions

The second loophole is Optional Practical Training (OPT), which allows international students to remain in the U.S. after graduation. Graduates in STEM fields can extend this for up to three years, giving adequate time for companies to recruit skilled professionals while they test with longer-term visa or green card options. Immigration experts find OPT may turn out to be an invaluable bridge as companies shift into the new fee regime.

Green cards as a direct route

These firms will occasionally bypass temporary visas and go straight to green card sponsorship. While green card times vary enormously by nationality—Indians and Chinese typically wait a few years—there are some categories such as the EB-1A "Einstein visa" for individuals with extraordinary achievement that are faster. This category encompasses successful researchers, professors, and executives, and many eligible technology professionals are unaware they qualify. "People are unaware," one immigration adviser said, pointing out that entrepreneurs and inventors tend to qualify without applying. For employers, bringing in an immigrant might bring stability and end future visa woes.

Risks for smaller firms

While big multinationals might easily switch to offshoring or other visas, smaller businesses could be in trouble. Start-ups that count on specialists from overseas for niche skills will be deterred by the increased fees, pricing them out of essential talent. Hospitals and nonprofits might experience staffing difficulties as well, especially in rural communities where domestic workers are thin on the ground. Immigration lawyers say the new policies have the potential to create a two-tier system—one in which global firms switch over easily, with smaller entities left behind.

The bigger picture: America's talent competition

The timing of the policy shift is also worrying on a bigger scale. Experts note that the U.S. is fighting hot global wars for talent in artificial intelligence, biotechnology, and advanced manufacturing. Cutting off channels for talented immigrants may erode the country's innovation edge. "The requirement for skill and expertise has by no means ever been at a bigger premium," insisted Dan Wang, a Columbia Business School professor. Companies may eventually buckle, but America will lose its position as the world's talent leader.

Waiting for certainty

For now, most employers are in a holding pattern, watching for further guidance and potential legal challenges. Some may test the system by filing applications without paying the $100,000 fee to see if they can “squeak through.” Others are lobbying for exemptions or reduced costs for nonprofits and universities. As one immigration lawyer put it: “We’re only in the first 10 minutes of a three-hour movie.”