Small Businesses Dismayed as New H-1B Visa Fee Looms

Thu Oct 16 2025 08:37:24 GMT+0300 (Eastern European Summer Time)

U.S. startups and small firms brace for a potential $100,000 fee for H-1B visa applications, raising concerns over innovation and economic stability.

The recent announcement of a $100,000 fee for H-1B visa applications has triggered alarm among small businesses and startups in the U.S. Many fear they will be unable to afford the costs associated with hiring skilled foreign workers. This move, part of a broader shift in U.S. immigration policy under the Trump administration, could have far-reaching implications not only for the tech industry but also for sectors like healthcare and education, where workforce shortages persist. Analysts warn that such financial barriers may stifle innovation and drive companies to relocate operations abroad.

When US President Donald Trump signed an executive order last Friday to add a $100,000 (£74,000) fee for applications for H-1B visas, a programme for skilled foreign workers, Abhishek Singh immediately worried he would have to relocate.

Mr. Singh, a software engineering manager based in the Seattle area, knew that his employer - a US startup - would not be in a position to pay the fee on top of his current salary.

Mr. Singh, who has been working in the US for ten years - the last seven of them on a H-1B visa - breathed a slight sigh of relief when the White House clarified on Saturday that for now, the fee only applies to future applicants.

But his worries indicate the far-reaching consequences of the change, which creates new burdens for businesses, particularly startups, potentially stifling innovation and economic growth.

The H-1B programme has been a crucial pipeline for skilled labor in various sectors, notably tech, but it is not limited to giants like Amazon and Microsoft, who collectively secured thousands of approvals in the first half of 2025. The impact of the new fee is particularly concerning for smaller firms and startups which may find the financial burden crippling.

If you're a startup with new technology and venture capital but burning through it too quickly, this could kill you, said John Skrentny, a professor at the University of California, San Diego.

Beyond the tech industry, sectors like education and healthcare also struggle to recruit through H-1B visas. Karen Brady, CEO of Ryther, a Seattle behavioral health nonprofit, expressed that the organization cannot afford the new fee and will cease H-1B applications, despite relying on such visas to address workforce shortages.

Moreover, some economists warn that this policy shift could hinder US growth and lead to a shrinking labor force, ultimately driving companies to offshore their operations, as stated by corporate immigration experts.

Despite temporary reprieve, the uncertainty of future immigration policies weighs heavily on professionals like Mr. Singh, who consider opportunities abroad if forced to leave the U.S.