PARTNERSHIPS | COMMUNITY | PODCAST | FRIENDS
New H-1B Visa Cost Puts Pressure On Startups
Pay to play // Image by Kait Cunniff with DALL-E
The White House’s announcement that H-1B visas — used to hire and retain skilled foreign workers — will now cost $100,000 has sent shockwaves through Silicon Valley.
Why It Hurts: Most H-1B holders work in tech and science, so those industries will feel the squeeze the most. While many agree the system needed an overhaul, the change risks creating two classes of companies: those that can afford the fees and those that can’t — especially since 30% of H-1B roles pay salaries under $100,000.
Behind The Hires: Currently, H-1B visas cost less than $5,000 total, so the price increase is significant.
The announcement spooked Silicon Valley, prompting calls for H-1B workers planning to travel abroad to stay put — even leading to a deplaning on a San Francisco-to-India flight (71% of H-1B holders are from India).
The White House later clarified that the updated H-1B system will take effect next March for new applicants only — not renewals — meaning current holders are safe to travel home.
The new system would replace the current lottery, which capped visas at 85,000 per year (with over 400,000 applicants). Now, seemingly, if you can pay the fee, you’re in.
The Future: Commerce Secretary Howard Lutnick hopes a $100,000 H-1B fee will encourage companies to more strongly consider hiring Americans. But the new system could have serious consequences.
Y Combinator CEO Garry Tan posted on X: “A $100K annual fee won’t bother Big Tech, but it kneecaps startups and body shops the same, and that’s a mistake.” Experts also warn it could backfire — catalyzing US firms to simply hire more remote employees abroad or discouraging foreign companies from setting up shop in America and bringing talent with them… an opening competitors like China could capitalize on.
Prediction: In the future, nearly every new H-1B visa holder will likely work for a major firm… making the visa even more competitive to secure.
Together with Brad’s Deals
Think You Know Amazon Prime? These Nine Perks Will Surprise You
You may think you know Amazon Prime, but these nine hidden perks might surprise you.
From exclusive savings to unique features, these benefits could take your membership to the next level.
Don’t miss out on perks you’re already paying for — unlock the full potential of Prime today.
PARTNERSHIPS | COMMUNITY | PODCAST | FRIENDS
Today’s email was written by David Vendrell.
Edited by Nick Comney. Polled and Copy-edited by Kait Cunniff.
Published by Darline Salazar.