Bay Area tech leaders sound alarm over new $100,000 H-1B visa fee

By Da Lin

As the Trump administration imposes a new $100,000 fee on H-1B visa applications, many tech leaders in the Bay Area say the policy could deal a serious blow to innovation and economic competitiveness in Silicon Valley and beyond.

The H-1B visa program, which allows U.S. companies to employ foreign workers in specialized fields, has long been a lifeline for startups and established tech giants alike. According to the U.S. Citizenship and Immigration Services, California consistently receives the highest number of H-1B workers each year, with many of them based in Silicon Valley.

Deedy Das, a San Francisco venture capitalist and partner at Menlo Ventures, is a former H-1B visa holder from India. He now helps fund startups and artificial intelligence companies throughout the region.

“One of the advantages America has is the ability to attract global talent,” Das said. “If you stifle even that, it just makes it that much harder to compete on a global level.”

Das believes the new six-figure fee will not only impact software engineers and tech startups, but also healthcare institutions and universities that depend on foreign professionals.

“Let’s say you’re a five-person, 10-person company. You often have $2-$4 million in your bank account,” he explained. “Now, you’re looking at hiring maybe two or three foreign-born workers and all of a sudden, your runway can shorten by three months.”

The United States currently caps the number of H-1B visas at 85,000 per year. From October 1, 2024, to now, California once again topped the list, with major employers like Meta, Apple, and Google hiring thousands of H-1B workers. Meta alone brought in more than 5,000, according to the U.S. Citizenship and Immigration Services department. 

But smaller companies said the new policy could push them out of the competition altogether.

“It diminishes our innovative capacity in the United States,” said a South Bay tech founder who asked to remain anonymous. “It tells other brilliant people around the world that we are not open for innovation.”

That same founder said his company just sponsored an H-1B worker who arrived in the U.S. on Saturday. Now, he said they may never do it again under the Trump administration.

“I can say that as long as this [$100,000 fee] is in place, we are not going to be able to afford to do it anymore,” he said. “It’s a catastrophe.”

The $100,000 fee only applies to new H-1B applicants. But the news has already caused confusion and anxiety among foreign workers living in the Bay Area and their employers.

Sophie Alcorn, an immigration attorney and founder of Alcorn Law in Palo Alto, said her firm has been inundated with calls from concerned clients and tech executives.

“H-1B visa holders, fortunately, now you are safe, you are protected, you will be able to stay in the U.S., you will be able to travel internationally, and you will be able to have your employers renew your H-1Bs,” Alcorn said.

“We’re going to be able to keep people in our country that are going to be very productive people, and in many cases these companies are going to pay a lot of money for that,” President Trump said on Friday.

Many in the tech industry warn it could weaken the United States in the global race for leadership in artificial intelligence and innovation.   

“It’s hard enough as it is as a small company with less than 10 people trying to make your mark on the world,” said Das. “It gets even harder when you have more and more handicaps.”

Mr. Trump also announced Friday the launch of a new visa program offering so-called “Gold Card” visas, with a path to U.S. citizenship for $1 million after a vetting process. The cost for companies to sponsor each employee would be $2 million. Commerce Secretary Howard Lutnick said people approved for the card will be considered lawful permanent residents, more commonly known as green-card holders.

The Trump administration is also considering a “Platinum Card” priced at $5 million. It will allow people to spend 270 days in the U.S. without paying taxes on their non-U.S. income. However, Lutnick said it would not offer a pathway to citizenship.  

Critics said the fees place innovation behind a paywall, favoring large corporations and ultra-wealthy individuals, while startups and smaller players are left behind.