President Donald Trump’s new rule imposing a $100,000 application fee for H-1B visas is drawing sharp criticism from economists, tech leaders, and India, with warnings that the move could stunt U.S. growth and trigger a global talent drain.
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Fee Hike Seen as “Anti-Growth” Policy
The fee, announced Friday, is 60 times higher than the current cost and is aimed at pushing companies to hire more American workers. But economists argue it risks doing the opposite.
Atakan Bakiskan, economist at Berenberg, called it an example of Trump’s “anti-growth policymaking,” saying it would worsen the U.S. brain drain and weigh heavily on productivity. He warned that tariffs, fiscal uncertainty, and loss of skilled workers “may set a path for an even weaker dollar and higher long-term yields.”
Deutsche Bank strategist Jim Reid added the announcement caused “a huge amount of uncertainty” in industries reliant on H-1B visas.
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Big Tech and Beyond Brace for Disruption
Silicon Valley companies, the largest users of H-1B visas, scrambled over the weekend, with some urging staff not to leave the country.
Amazon, which had over 10,000 H-1B visas approved in the first half of 2025, is the top employer of visa holders, followed by Microsoft, Meta, Apple, and Google. While these firms can afford the higher fee, other industries, including healthcare and education, may struggle to recruit needed staff, analysts warn.
The White House later clarified that the $100,000 charge applies only to new applications and will be a one-time payment.
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India Hits Back
India, the biggest beneficiary of the program, accounting for 71% of approvals last year, slammed the policy. Commerce Minister Piyush Goyal said the fee would have “humanitarian consequences” for families and accused Washington of being “a little afraid of our talent.”
Indian tech giants Infosys and Tata Consultancy Services, which deploy thousands of workers to U.S. clients, saw shares drop about 3% on Monday following the news.
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What’s at Stake
The H-1B program grants 65,000 visas annually, with an additional 20,000 for advanced degree holders. Economists warn that pricing out international talent could slow U.S. GDP growth from 2% to 1.5%, or worse. “Investments in AI can’t offset the damage caused by the loss of human capital,” Bakiskan cautioned.
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