Trump’s $100,000 H-1B Visa Fee Sparks Economic Growth Concerns as Policy Takes Effect
Trump’s $100,000 H-1B Visa Fee Sparks Economic Growth Concerns as Policy Takes Effect
A recent proclamation by Donald Trump, introducing a staggering $100,000 application fee for H-1B visas, has drawn sharp warnings from economists who fear it could significantly impede US economic growth. The new fee, a sixty-fold increase from the previous cost, is designed to incentivize companies to prioritize American workers.
The move represents a substantial blow to major tech corporations like Amazon, Microsoft, Meta, Apple, and Google, which heavily depend on H-1B visas to recruit skilled engineers, scientists, and coders globally, particularly from India. Investment bank Berenberg economist Atakan Bakiskan labeled the policy as ‘anti-growth policymaking,’ predicting a ‘brain drain’ that will negatively impact productivity and potentially overshadow gains from AI investments.
Berenberg has already revised its US economic growth forecast downwards from 2% to 1.5% this year, with Bakiskan suggesting even this figure might prove optimistic if the policy remains. He also highlighted broader risks to the US economy, including erosion of trust, loss of human capital, tariffs, and fiscal uncertainties, which could lead to a financial crisis, a weaker dollar, and higher long-term yields.
The announcement initially caused widespread uncertainty within the tech industry, prompting the White House to clarify that the new fee applies only to new applicants and is a one-off payment. India, the primary beneficiary of H-1B visas, accounting for 71% of approvals last year, has expressed strong disapproval, citing potential ‘humanitarian consequences’ and family disruptions. Indian Commerce Minister Piyush Goyal noted, ‘They are also a little afraid of our talent.’
In the first half of 2025, Amazon secured over 10,000 H-1B visas, with Microsoft and Meta Platforms each exceeding 5,000 approvals. Beyond tech giants, sectors like healthcare and education, also reliant on H-1B visas, are expected to face significant recruitment challenges. The H-1B program annually allocates 65,000 visas for specialized foreign workers and an additional 20,000 for those with advanced degrees. Following the news, Indian tech giants Infosys and Tata Consulting Services saw their share prices dip, as both extensively utilize the H-1B program to deploy Indian professionals to US clients.
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