Become a member

Get the best offers and updates relating to Liberty Case News.

― Advertisement ―

spot_img

38 And Behind On Your Finances? Here’s How To Turn It Around

It's never too late to build up your nest egg and put yourself in a better position by the time you retire. A...
HomeFinanceRattled by Trump's Chaotic H-1B Policy, US Firms Quietly Wait Out Changes

Rattled by Trump’s Chaotic H-1B Policy, US Firms Quietly Wait Out Changes

The Trump administration’s steep new visa fees for highly specialized H-1B work visas have rattled US businesses, but most big companies are staying quiet as they wait to see how the policy plays out.

The White House’s announcement Sept. 19 of a $100,000 fee sparked panic among employers and workers, particularly in the tech sector, which uses it to bring in trained engineers and programmers. A separate proposal released Tuesday would overhaul the annual lottery for H-1B visas, giving applicants with higher-paying job offers a better chance of being chosen.

Most Read from Bloomberg

Together, the changes amount to one of the most sweeping shifts for a program that’s long served as a pipeline for global talent to the US.

The initial frenzy has eased after officials clarified the fee wouldn’t apply to existing visa holders or renewals. But unease persists ahead of the 2026 lottery, even with a White House proposal for a national-interest exception that could cover doctors and certain other workers.

For businesses, one advantage of the wait-and-see approach is to avoid drawing the ire of the Trump administration, said Kathryn Wylde, chief executive officer of the Partnership for New York City.

“The president has the business community spooked with regard to any public criticism of his policies,” she said. The concern isn’t just the price tag, she added. “It’s the whole question of, ‘Is America withdrawing from the global economy?’”

Behind the scenes, companies including Microsoft Corp., Amazon.com Inc. and Google parent Alphabet Inc. have advised current H-1B holders and employees with pending petitions to return to the US immediately and avoid foreign travel.

The $100,000 fee, which took effect Sept. 21, and the new wage-based visa selection process are likely to face legal challenges. If the fee survives, it’s likely to reallocate visas toward higher-wage positions in sectors such as technology, finance and health care, while pushing out lower-wage positions in areas like education, Bloomberg Economics said in a report.

“Immigration has always been and will continue to be a very politically charged topic,” said Paul Argenti, professor of corporate communication at Dartmouth College’s Tuck School of Business. “Wading into these waters carries incredible reputational risk, which is why companies don’t do it.”

There are a few prominent exceptions. JPMorgan Chase & Co. CEO Jamie Dimon said the new fee left companies struggling to quickly determine the potential impact.

“For us, visas matter because we move people around globally — experts who get promoted to new jobs in different markets,” Dimon said in an interview with CNBC-TV18. “The challenge is that the US still needs to remain an attractive destination.”

Snowflake CEO Sridhar Ramaswamy, noting that he’s an immigrant himself, said the visa change isn’t an immediate problem for his company but cautioned that workers from around the world “have a lot to add” to US tech companies.

WATCH: Bloomberg’s Hadriana Lowenkron breaks down President Donald Trump’s crackdown on the H-1B visa process, with the administration poised to add a $100,000 fee for applications.Source: Bloomberg
WATCH: Bloomberg’s Hadriana Lowenkron breaks down President Donald Trump’s crackdown on the H-1B visa process, with the administration poised to add a $100,000 fee for applications.Source: Bloomberg

“There are a ton of folks like me that come in and create massive amounts of value and then become proud citizens,” he told Bloomberg Television.

Some business leaders have come out in support of the proposed fee. Netflix Chairman Reed Hastings took to X on Sept. 21 to say he has “worked on H-1B politics for 30 years. Trump’s $100k per year tax is a great solution. It will mean H-1B is used just for very high value jobs, which will mean no lottery needed, and more certainty for those jobs.”

Large companies with ample resources have long crowded the competitive H-1B visa applicant pool. Smaller companies could benefit if the pool shrinks even slightly, said Ben Johnston, chief operating officer at Kapitus, a small and mid-sized business lender. But he added that the costs tied to the policy changes are unlikely to discourage the biggest players from employing H-1B holders.

“If it was a great value before it cost $100,000 to bring a highly skilled employee in, I still think it’s a decent value even after the $100,000 price tag,” Johnston said.

Watch: The Middlemen Gaming the US Work Visa Lottery
Watch: The Middlemen Gaming the US Work Visa Lottery

 

–With assistance from Annika Inampudi, Paayal Zaveri, Jaewon Kang, Eric Fan, Denise Lu, Zachary R. Mider and Alex Newman.

Most Read from Bloomberg Businessweek

©2025 Bloomberg L.P.

Source link