H-1B Visa Row: Lawmakers Request Trump Admin to Scrap $100K Visa Fee, Calls it ‘Expensive’ for Early-Stage Startups

Amid the ongoing H-1B visa row, seven US lawmakers including both Democrats and Republicans have written to President Donald Trump and Commerce Secretary Howard Lutnick requesting the government to withdraw the $100,000 fee on H-1B visas. They have stated that the recent changes could harm the country’s innovation-driven economy and weaken its global competitiveness. 

Releasing a joint statement, the seven lawmakers said that while the H-1B visa system does need some changes to better align with American values and workforce needs, the new rules which specially includes the $100,000 annual fee will make it difficult for many employers to hire and retain skilled foreign workers.

The letter was signed by Suhas Subramanyam, the son of Indian immigrant parents as well as several other members of the US Congress, including Sam T Liccardo, Jay Obernolte, María Elvira Salazar, Don Bacon and Greg Stanton, Business Standard reported.

According to the Congress members, the move could especially harm small and early-stage companies that depend largely on global talent to grow. “The $100,000 fee is prohibitively expensive for startups that are not yet profitable. It will stop them from recruiting needed talent, slow their growth, and reduce the number of Americans they employ,” the statement said.

They further mentioned that the uncertainty around the new visa proclamation could disrupt the operations of many innovation-driven employers. Thereby, the members asked for a bipartisan approach to high-skilled immigration reform that strengthens the US talent pipeline, prevents visa misuse and creates more job opportunities for American citizens.

The Congress members have also warned that if US companies fail to bring in the required talent, many skilled workers may return to their home countries like India, China, Israel and start some competing firms.

In addition to that, the letter also mentioned that China already produces nearly half of the world’s top artificial intelligence (AI) researchers, more than twice as many as the US and that America’s leadership in AI and quantum computing depends on attracting and keeping global talent.

The letter to Trump also emphasised on how other countries are making quick moves to attract new talent. Recently, China has introduced a new “K-type” visa for young, skilled professionals in science and technology, and Canada has announced an easier visa programme for high-skilled workers.

Thereby, such moves could make the US less competitive in the global race for innovation.

The H-1B programme has helped US startups with hiring highly skilled immigrants for decades now and many of them also studied in American universities. “Research shows that companies with H-1B workers file more patents, grow faster, and hire more American workers,” the letter further stated.

“Foreign-born entrepreneurs have played a major role in building the US tech economy. Nearly half of all American unicorn startups were founded by immigrants. Many of today’s leading tech firms, now worth a combined $20 trillion, may not have survived early on if such high visa costs existed then,” it added.

From September onwards, the Trump administration imposed a $100,000 fee on H-1B visas, of which over 70 per cent of beneficiaries are Indians.