The Trump administration has introduced a $100,000 annual fee for companies applying for H-1B visas, the main pathway for highly skilled foreign workers to come to the United States. Officials argue the steep price will stop tech companies from overusing foreign talent and create more opportunities for American workers. President Trump called it a way to prioritize “very successful” immigrants over those “walking over the borders,” the Wall Street Journal reported.
Who uses H-1B visas
Created in 1990, the H-1B program supplies US companies with skilled workers, especially in science, technology, engineering, and math. Tech giants like Amazon employ thousands through it, and universities rely on it for professors and researchers. In 2023, nearly three-quarters of H-1B visas went to Indian workers, while Chinese workers accounted for about one in 10. The program has also been a draw for foreign students studying in the US, offering them a path to stay after graduation.
Potential benefits for some workers
Economists say a smaller pool of foreign workers could help a narrow group of US employees. Computer programmers and other mid-level tech workers, for example, may see wages rise if firms compete harder for native-born talent. Companies would be forced to rely more on the domestic workforce, possibly improving employment prospects for some Americans displaced by recent tech layoffs.
Risks to innovation and growth
But most economists caution that the broader US economy could lose out. Studies have consistently found that H-1B workers complement rather than replace American workers by boosting innovation, entrepreneurship, and productivity. Research has shown that limiting visas leads multinational companies to move work abroad instead of hiring more Americans. Rutgers economist Jennifer Hunt warned the new measure could “shut down the H-1B program entirely,” damaging long-term competitiveness.
Global competition for talent
The new fee also risks making the United States less attractive to international students and skilled workers, who could turn to Canada, Europe, or Asia instead. Economists note that while some native-born workers might gain in the short run, fewer foreign professionals would mean slower research and development, fewer start-ups, and reduced overall wage growth. As George Mason economist Michael Clemens put it, “H-1B visas cause innovation … which generates job opportunities and higher earnings for native workers across the skill spectrum.”
Adjustment challenges ahead
Even if the labour market eventually adjusts, sudden restrictions can create shocks. Companies dependent on H-1B workers could face vacancies they struggle to fill, while skilled US workers may not live in the right places to step in immediately. Economists warn that such dislocations could ripple through industries already strained by automation and artificial intelligence. In the end, the fee may help a few workers in the short term but leave the broader economy less dynamic and less competitive.
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