Trump’s H-1B visa changes could ‘kneecap startups,’ experts say
US President Donald Trump is talking with the United Nations Secretary -General Antonio Guterres (not in the picture) during the 80th United Nations General Assembly in New York, New York, dated September 23, 2025.
Alexander Drago | Reuters
It has been a chaotic for the technology industry, and industrial managers and experts still evaluate how the latest immigration prints of US President Donald Trump can shape the future of labor.
The Trump administration created widespread panic on Friday after announcement that employers will pay a new fee of $ 100,000 for H-1B visas, which are temporary working visas given to high-skilled foreign professionals. These visas have supported the US technology labor force for decades.
Some technology managers including Netflix Founding Joint Reed Hastings and Openai CEO Sam Altman praised the changes in the H-1B program, but experts, CNBC, the changes of the Trump administration can prevent some technology companies-that is to prevent the best foreign capabilities of the attempts. These experts, changes to other countries to direct the risk of directing the risk of directing, he said.
“In short, it would be a disaster for America, American companies, American competitiveness, American innovation,” Exequiel Hernandez, an associate professor at the Wharton School of Pennsylvania, said.
TECH rely on the H-1B program
The existing annual cover for H-1B visas is 65,000 and is an additional visa for foreign professionals with advanced degrees.
2025 financial year, Amazon– Microsoft– Meta– Apple And Google It is one of the top 10 companies employing H-1B owners. Microsoft CEO Satya Nadella, Google CEO Sundar Pichai and Tesla CEO Elon Musk was H-1B buyers in his careers.
Technology companies, Trump’s announcement on Sunday at 12: 01, trying to respond before entering, while the White House questioned some concerns on Saturday. explanatory The fee is not annual and it will be valid for new visas, not renewals for existing visa holders.
There may be more changes on the horizon.
Trump Management One Proposed rule On Tuesday, H-1B said that buyers should be selected with a weighted transaction instead of a random transaction. The proposal said that the weighted process exceeds the limit of the existing points and this will be based on wage levels.
The proposed rule will be officially published in the Federal Registration on Wednesday and may still change after reviewing the administration’s first public feedback.
Hastings called the Trump administration’s $ 100,000 fee of “a great solution” A writing At X on Sunday.
“This means that H1-B is only used for very high valuable jobs, which is not needed to lottery, and it means more certainty for these works.”
During an interview with Jon Fortt from CNBC on Monday, Altman from Openai was supported.
“We must take the smartest people in the country, and it seems good for me to facilitate this process and at the same time summarizing financial incentives.” He said.
‘It Dizcecaps’
Historically, H-1B visas have a cost employers of $ 2,000 per application depending on the size of the company, depending on the size of the company.
A new fee of $ 100,000, a big jump for small, cash shortages.
“You will not find many initiatives that will be willing to pay $ 100,000 per H-1B, as well as salary for H-1B, Adam Kovacevich, CEO of the Chamber of Trade Union with the left-leaning technology industry. He said.
Even large technology companies may feel a little bit of pain and have to re-evaluate what they use H-1Bs. However, deep pockets come with advantages.
“A large company like Microsoft or Google, although not ideal for them, has temporary solutions,” Hernandez from Wharton. ” He said. “They can do or buy open sea business.”
Garry Tan, CEO of the popular starter accelerator, criticized the new fee of the Trump administration and wrote in a LinkedIn post This is “a big gift to the” kneeling “and the overseas technology centers”.
Tan said, “In the middle of an AI weapon race, we tell builders to build elsewhere.” “We need American Little Tech to win – not paid cabins of $ 100,000.”
On June 2, 2023, a picture shows the logos of the major technology companies Gafam for Google, Apple, Facebook, Amazon and Microsoft.
Sebastien Bozon | AFP | Getty Images
China and other competitors look big
US technology companies compete with each other – with the rest of the world as they compete to improve their large and small, most advanced AI models and applications. Organizations like Meta have threw billions of dollars to hire the best AI ability to get an advantage.
The changes in the Trump administration in the H-1B program can complicate similar recruitment efforts.
“This is what he does, to places like Asia, Canada, Europe, to places like Asia, Canada, Europe, then to create new innovations,” he said, “this is what he does,” this, as a non -profit organization for immigration advocacy and research. He said.
A great rival in the war of talent is China. The world’s second largest economy has long fought against the United States for technology dominance and more recently AI race.
Earlier this year, the Chinese AI company Deepseek shook global markets after claiming that it created a large language conversation boat that shows better performance from competitors in a portion of the cost. The news revealed questions about the important amounts that American technology companies explode in AI.
Some experts are concerned that visa changes can win victory in China’s hands and send the best skills abroad. Since the movement is hanging uncertainty over after graduation, it can prevent foreign students from going to the university in the USA.
“These students will look at this environment and stay at home,” Cornell Tech assistant Greg Morrisett said. “He gives a leg to both China and India to feed the initial ecosystems.”
For Bradley Tusk, CEO of Tusk Venture Partners, the changes in the H-1B program are simply “terrible”. He said that American companies should have the best abilities to compete at the highest levels.
“America’s competitive advantage has always been the ability to attract the best abilities from all over the world.” He said. “It is unreasonable to limit our ability to hire and compete.”
WRISTWATCH: JPMorgan CEO Jamie Dimon speaks about H-1B visa changes
