It’s official: the fee on H-1B visas is back in the headlines, and not in a good way.
In what’s being called a renewed immigration crackdown, President Donald Trump (yes, he’s back in 2025) has turned his focus once again to the H-1B visa program, targeting skilled foreign workers with increased costs, red tape, and a flood of executive orders that seem more political than practical.
If you’re an employer in the U.S. trying to hire from abroad, particularly in tech or specialized roles, this is more than just news. It’s a costly headache that threatens your ability to compete.
Let’s break down what’s happening, why it matters, and what smart businesses are doing instead.
Immigration Policy or Political Theater?
Since taking office again in January 2025, President Donald Trump has been rolling out a familiar playbook: appeal to the base by “protecting American jobs”, which, apparently, still means making life difficult for highly skilled foreign workers.
In July, Trump signed an executive order proposing a significant fee for H-1B visas that could affect both new applications and renewals or current visa holders.
The Numbers:
A new annual fee on H-1B visa applicants, projected at $5,000 per petition.
This applies prior to filing an H-1B and is non-refundable even if the petition is denied.
It affects tech companies, startups, and enterprises alike, with no exemptions for nonprofits or small businesses.
White House spokesperson Karoline Leavitt stated the measure is intended to “ensure American companies prioritize American workers.” But for many in the startup and tech communities, it feels like déjà vu, and not the good kind.
The H-1B Program
For decades, the H-1B visa program has been a lifeline for U.S. companies seeking foreign workers in specialized fields. Think software engineers, AI researchers, cybersecurity analysts roles where U.S. talent is scarce.
But the Trump administration (both then and now) continues to paint it as a loophole, one exploited by companies to undercut American workers. In reality, H-1B workers are filling critical talent gaps that, frankly, would remain empty otherwise.
Let’s be real: if it were easy to find a senior-level data engineer in Oregon right now, we wouldn’t be here.
Instead, businesses are staring down:
- Lottery systems
- Delayed processing times
- Unpredictable policies
- And now, a fresh fee on H-1B visas that punishes companies for even trying to hire qualified global talent.
H-1B Visa Applicants vs. the White House
According to CBS News, the new policy has sent a chilling message to visa applicants and companies alike. One executive from a major SaaS company told reporters anonymously, “We’re trying to build the future of tech, not run a political gauntlet just to hire a machine learning engineer from India.”
And here’s the thing: India and China account for the vast majority of H-1B visa holders. That’s not a coincidence, it’s a reflection of where the talent lives. Imposing heavy costs on these highly skilled workers won’t make more American engineers appear. It’ll just make companies look elsewhere and not to the next U.S. city, but to another country entirely.
Which brings us to the rising star of 2025: Employer of Record services.
Smart Employers Are Skipping the Visa Drama Altogether
Here’s what nimble companies are doing now: hiring global talent without the visa process.
That’s where Empleyo comes in.
As an Employer of Record (EOR), Empleyo allows U.S. companies to hire international employees legally and compliantly without requiring a visa, and without setting up a foreign entity.
No lottery.
No immigration lawyers.
No six-month wait.
And, crucially: no $5,000+ in visa fees per employee.
This is the modern workaround to a very outdated problem.
What’s the Cost of Doing Nothing?
Let’s say you’re a startup trying to bring on a brilliant backend developer from Bangalore. You:
- Enter the H-1B lottery.
- Pay legal fees.
- Get hit with Trump’s H-1B visa fee.
- Wait 6–8 months.
- And still might get rejected.
Meanwhile, your competitor used an EOR to onboard a similar developer in 10 days, who’s already building your competitor’s core infrastructure.
Not exactly a fair fight, is it?
What Does the New Fee Mean for H-1B Holders and American Workers?
For H-1B holders, this isn’t just another form to fill out, it’s a financial and emotional gut punch. Many are already living and working in the U.S., contributing to the economy, paying taxes, and building lives here. This new fee for an H-1B petition adds stress, uncertainty, and in some cases, forces talented professionals to look for opportunities elsewhere.
The message? “You’re welcome here… but only if you can afford it.”
And for American workers, the outcome isn’t the job security the White House claims it is. While bills like the Keep Call Centers in America Act make for good headlines, they don’t address the core issue: U.S. companies still struggle to find specialized talent domestically. When businesses can’t access the skills they need, they don’t stop hiring, they just start hiring elsewhere.
In short: this policy doesn’t protect jobs, it pushes them away.
The Immigration Crackdown Is Hurting U.S. Innovation
The White House insists this is about putting American workers first, but studies from the American Immigration Council and other research orgs tell a different story.
H-1B workers in FY 2025 are not “replacing” Americans. They’re complementing teams, scaling operations, and driving innovation in AI, cybersecurity, healthtech, and beyond.
By raising the fee for H-1B visas, the Trump administration is doing the opposite of strengthening the workforce, it’s weakening U.S. companies’ ability to compete globally.
Supporters of the new H-1B visa fee often point to older policies like the HIRE Act bill, which proposed a 25% tax on companies that outsource jobs overseas, especially call centers.
But critics argue that policies like this, while catchy, are completely out of sync with how modern hiring works.
In 2025, the issue isn’t companies rushing to offshore cheap labor, it’s companies racing to find highly skilled workers, wherever they are.
Tying global hiring to tax penalties or outdated laws like the HIRE Act does little to solve the real challenge: talent scarcity, not talent disloyalty.
Elon Musk Even Weighed In
In a recent X (formerly Twitter) post, Elon Musk called the new visa fee “short-sighted and anti-innovation.” And while you don’t have to agree with Musk on everything, he’s not wrong here.
The Real Alternative for U.S. Employers
Using the H-1B program in 2025 is like trying to drive a Tesla through a swamp – expensive, stressful, and bound to get stuck.
Employers looking to grow, innovate, and scale can’t afford to be bottlenecked by broken systems. Especially when tools like Empleyo exist to hire workers from abroad legally, without risking noncompliance.
Here’s How It Works:
- You find the talent wherever they live.
- Empleyo becomes their legal employer in that country.
- You manage the day-to-day like any other employee.
- We handle contracts, payroll, compliance, benefits, taxes, and local labor laws.
And you avoid the fee for an H-1B visa, the processing wait, and the uncertainty altogether.
What's Next for U.S. Immigration and Worker Visas?
The White House says more worker visa reforms are coming. There’s talk of:
- Raising visa fees further.
- Limiting the number of nonimmigrant workers.
- Tightening renewal conditions for current visa holders.
- And potentially making tech companies “prove” they couldn’t find a U.S. worker for every role.
This isn’t about fixing the H-1B visa program in order to address the abuse. This is about politicizing a process that should be built for business.
For FY2025, USCIS received more than 470,000 H-1B registrations, but only around 120,000 were selected to move forward, leaving the vast majority of employers and skilled workers in limbo.
Don’t Let a Broken System Break Your Business
If there’s one takeaway here, it’s this:
You don’t need to fight through bureaucracy to build a world-class team.
While President Donald Trump and the White House focus on raising barriers, you can focus on building your business, with the right partners.
At Empleyo, we help you hire the best talent in the world, without waiting for the next administration to change course.
Don’t let your next star hire get buried under paperwork and policy shifts. Book a free strategy session with us. We’ll show you how to:
- Stay 100% compliant
- Avoid costly visa delays
- Hire anywhere fast
Frequently Asked Questions About the H-1B Visa
What is an H-1B visa?
The H-1B visa is a nonimmigrant worker visa that allows U.S. companies to employ high-skilled foreign workers in roles that require specialized knowledge, especially in STEM and technology sectors.
It’s one of the most in-demand visa programs in U.S. immigration policy, and is widely used by technology workers, engineers, and researchers. But with rising political scrutiny, particularly from the White House under President Donald Trump, the program is facing increasing restrictions, including a controversial fee on H-1B visas proposed earlier this year.
How do you apply for an H-1B visa?
To begin, a U.S.-based employer must initiate the process by filing an H-1B petition on behalf of the foreign worker. This includes:
- Submitting a Labor Condition Application (LCA) to the Department of Labor.
- Filing Form I-129 with U.S. Citizenship and Immigration Services (USCIS).
- Awaiting approval before the visa applicant can complete consular processing.
Each fiscal year, there is a cap on new H-1B visa applications, which triggers a lottery system. Companies seeking to use the H-1B program are increasingly burdened by regulatory hurdles, including a non-refundable fee for H-1B filings, which Trump signed into policy during his previous administration.
Is the H-1B visa an immigrant or nonimmigrant visa?
The H-1B is a nonimmigrant visa, designed for temporary foreign workers in specialty occupations. However, it allows for dual intent, meaning visa holders can apply for permanent residency (green cards) without violating immigration law.
Despite being nonimmigrant, H-1B is often viewed by the Trump administration and White House officials as part of a broader debate around legal immigration, especially in terms of how it impacts American IT workers and the domestic labor force.
How long does the H-1B visa last?
Typically, the H-1B visa is valid for an initial three-year period, with the option to extend for another three years, making a total stay of six years. After that, visa holders must either transition to another legal status, such as permanent residency, or leave the country.
President Donald Trump previously implemented policies to limit renewals or current visa holders, arguing the H-1B program in order to address the abuse had to be reformed. While some changes were rolled back, the White House in 2025 has once again raised concerns over temporary foreign workers and their long-term presence in the U.S.
Can the spouse of an H-1B visa holder work?
Spouses of H-1B visa holders are eligible to apply for an H-4 visa. However, they cannot work unless they obtain an Employment Authorization Document (EAD). To qualify for this work permit, the primary H-1B holder must have already started the green card process.
This provision has been under fire from the Trump administration, with White House press secretary Karoline Leavitt stating in a July press briefing that the administration may revisit restrictions on work permits for nonimmigrant workers – the White House claims are “displacing American jobs.”
For many families, this means the spouse is unable to contribute financially while still bearing the cost to pay the fee associated with maintaining legal status – a pain point for both the families and the employers hiring them.
