The $100,000 H-1B Visa Dilemma: Small Businesses in a Bind

Tue Oct 21 2025 01:56:48 GMT+0300 (Eastern European Summer Time)

Small businesses face immense challenges as new visa fees threaten their ability to hire skilled foreign workers, impacting innovation and growth.

Recent changes in the H-1B visa program have introduced a hefty $100,000 application fee, raising fears among small companies and startups about their future in hiring skilled foreign workers. Experts warn that such costs could hinder innovation and drive companies to relocate abroad, all while impacting critical industries like technology and healthcare. With many companies left grappling with financial limitations, the ramifications of these policies could significantly reshape the labor market.

When US President Donald Trump signed an executive order on Friday to add a $100,000 (£74,000) fee for applications for H-1B visas, many in the startup sector, like software engineering manager Abhishek Singh, felt immediately concerned.

Singh, who has worked in the US for a decade, feared his employer wouldn’t be able to cover this new fee. Fortunately, the White House clarified that the charge applies only to future applicants for now. However, this executive order could create a significant burden for small businesses that rely on hiring skilled foreign workers.

The H-1B programme has predominantly benefited larger tech companies like Amazon and Microsoft, but it’s not just them who will suffer from the steep application cost. Startups and smaller firms could face crippling financial burdens that limit their hiring abilities. John Skrentny, a professor at the University of California, emphasized that many companies cannot afford such high fees.

“If you're a startup with new technology and you’re concerned about your funds, you could be hit hard by this,” he stated.

Similarly, Karen Brady, CEO of Ryther, a behavioral health nonprofit, shared her organization's struggles with staff shortages while striving to adhere to the new regulations. “There’s no way we can afford $100,000,” Brady lamented, indicating that such financial strain would hinder future hiring through the H-1B programme entirely.

In various sectors, including education and healthcare, leaders voice ongoing concerns surrounding workforce gaps exacerbated by new visa policies. If firms cannot afford to hire internationally, they might seek talent out of the country, fostering a potentially harmful trend of offshoring talent instead of employing local workers.

These policies, while aiming to safeguard American jobs, may inadvertently push companies to reconsider their operating locations entirely, leading to wider economic consequences. Many worry that youthful innovation could stagnate as visas for skilled workers become increasingly inaccessible.

As the debate over the H-1B visa program unfolds, workers like Singh are left contemplating their uncertain futures in the US job market.