Major U.S. business organizations are raising alarm over a proposed $100,000 fee for H‑1B visas, warning that the move could stifle hiring, hinder innovation, and weaken America’s competitive edge in critical industries. Executives and industry coalitions argue that such a fee would act as a de facto ban on foreign talent rather than a constructive reform of skilled immigration policies.
What’s Being Proposed
The proposal calls for a $100,000 charge for each H‑1B visa filing, far exceeding current statutory fees and compliance costs for employers. Proponents describe the fee as a way to curb misuse and encourage domestic hiring, but business groups warn that the cost is punitive and disconnected from real-world labor-market needs, especially in high-tech, biotech, and advanced manufacturing sectors.
Why Businesses Object
Industry leaders say the fee would disproportionately affect small and mid-sized companies, potentially forcing startups to abandon U.S. expansion plans. They also warn that high-value projects could migrate overseas to countries actively competing for skilled workers. Shortages in specialized roles are already significant, and the new fee could further exacerbate gaps in critical skill areas, putting additional pressure on productivity, growth, and service delivery.
Risks to Competitiveness and Hiring
Executives highlight that a six-figure levy per H‑1B application could result in:
- Hiring freezes
- Delayed expansions
- Offshoring talent to lower-cost, talent-friendly countries
Such outcomes, they argue, would undermine the policy’s stated goal of boosting domestic employment, while sending a signal that the U.S. is an unpredictable environment for high-skilled labor.
Rare Industry Split With the White House
Business coalitions say their public opposition represents a rare divergence from the administration, emphasizing the potential harm to U.S. competitiveness. They argue that drastically increasing visa costs will not meaningfully expand the domestic talent pipeline and instead penalize firms that have long complied with wage, transparency, and attestation requirements.
Wider Impacts Across the Ecosystem
Industry leaders caution that the fee could have ripple effects across supply chains, research partners, and regional economies reliant on high-skill teams. Universities, accelerators, and research institutions could also face challenges as graduates reconsider career paths if U.S. work opportunities become prohibitively expensive or restricted.
Suggested Alternatives
Business groups are urging policymakers to consider targeted measures rather than blanket fees, including:
- Compliance audits focused on bad actors
- Faster visa adjudication processes
- Clearer regulatory guidance
- Expanded domestic training programs without limiting access to scarce skills
These strategies, they argue, balance domestic workforce development with continued access to global talent.
