'Reckless and unfortunate': US lawmakers slam Trump's decision to slap $100,000 fee on H-1B visas

'Reckless and unfortunate': US lawmakers slam Trump's decision to slap $100,000 fee on H-1B visas

Calling the plan “reckless,” Congressman Raja Krishnamoorthi said it amounts to cutting America off from the very talent pool that has helped build the nation’s innovation economy.

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US President Donald Trump said abuse of the H-1B programme is a national security threat.US President Donald Trump said abuse of the H-1B programme is a national security threat.
Business Today Desk
  • Sep 20, 2025,
  • Updated Sep 20, 2025 10:31 AM IST

US President Donald Trump’s latest executive order to impose a $100,000 fee on H-1B visa applications has triggered sharp criticism from lawmakers, policy experts, and community leaders, who warn that the move could have far-reaching consequences for America’s technology sector and global competitiveness.

Calling the plan “reckless,” Congressman Raja Krishnamoorthi said it amounts to cutting America off from the very talent pool that has helped build the nation’s innovation economy. “High-skilled workers have long strengthened our workforce, fueled innovation, and launched industries that employ millions of Americans. Many H-1B holders eventually become citizens and create businesses that generate well-paying jobs. While other nations are racing to attract global talent, the United States should modernize immigration instead of erecting barriers that weaken our economy and security,” he noted.

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Echoing the sentiment, Ajay Bhutoria, a former advisor to President Joe Biden and Asian-American community leader, described the plan as “staggering” and a potential crisis for the U.S. tech sector. He warned that the leap from the current $2,000–$5,000 fee to $100,000 will crush startups and small businesses dependent on skilled international workers. “This will drive talent away from Silicon Valley to Canada and Europe,” Bhutoria said, urging balanced reforms such as exempting startups and prioritizing merit-based selection.

Khanderao Kand of the Foundation for India and Indian Diaspora Studies called the decision “very unfortunate,” stressing its disproportionate impact on U.S.-educated STEM graduates and software professionals already facing job losses from AI disruption and tariffs.

David J. Bier, director of immigration studies at the Cato Institute, pointed out Indian H-1B professionals have contributed enormously to the U.S.—hundreds of billions in taxes, tens of billions in fees, and trillions in services. They are among the most peaceful, talented, and driven individuals to arrive on American shores. "Indian H1Bs contributed an unfathomable amount to America: 100s of billions in taxes, 10s of billions more in fees, trillions in services. Among the most peaceful, intelligent, interesting people to grace our shores. And what do we give back? Demonization & discrimination...," Bier wrote on X.  

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US President Donald Trump has announced a sweeping overhaul of the H-1B visa program, citing abuse by companies replacing American workers with cheaper foreign labor. The executive order highlights rising unemployment among U.S. computer science graduates, layoffs linked to H-1B hiring, and national security concerns. Effective September 21, 2025, employers will be required to pay a $100,000 fee per H-1B petition for workers outside the U.S., with limited exemptions for national interest cases. The order also raises prevailing wage levels and prioritizes highly paid, skilled workers, marking a major shift in U.S. immigration and labor market policy.

The White House defended the overhaul, citing abuse of the H-1B program by firms allegedly replacing Americans with cheaper foreign labour. The order points to rising unemployment among U.S. computer science graduates, mass layoffs tied to H-1B hiring, and national security concerns.

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Data from the U.S. Census Bureau underscores the policy debate: between 2000 and 2019, the number of foreign STEM workers in the U.S. more than doubled from 1.2 million to nearly 2.5 million. In the same period, overall STEM employment rose only 44.5%. In computer and math occupations, the foreign share of the workforce climbed from 17.7% to 26.1%. Critics, however, argue that while misuse exists, a sweeping fee hike risks undercutting the very engine of U.S. innovation.

(With agency inputs)

US President Donald Trump’s latest executive order to impose a $100,000 fee on H-1B visa applications has triggered sharp criticism from lawmakers, policy experts, and community leaders, who warn that the move could have far-reaching consequences for America’s technology sector and global competitiveness.

Calling the plan “reckless,” Congressman Raja Krishnamoorthi said it amounts to cutting America off from the very talent pool that has helped build the nation’s innovation economy. “High-skilled workers have long strengthened our workforce, fueled innovation, and launched industries that employ millions of Americans. Many H-1B holders eventually become citizens and create businesses that generate well-paying jobs. While other nations are racing to attract global talent, the United States should modernize immigration instead of erecting barriers that weaken our economy and security,” he noted.

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Related Articles

Echoing the sentiment, Ajay Bhutoria, a former advisor to President Joe Biden and Asian-American community leader, described the plan as “staggering” and a potential crisis for the U.S. tech sector. He warned that the leap from the current $2,000–$5,000 fee to $100,000 will crush startups and small businesses dependent on skilled international workers. “This will drive talent away from Silicon Valley to Canada and Europe,” Bhutoria said, urging balanced reforms such as exempting startups and prioritizing merit-based selection.

Khanderao Kand of the Foundation for India and Indian Diaspora Studies called the decision “very unfortunate,” stressing its disproportionate impact on U.S.-educated STEM graduates and software professionals already facing job losses from AI disruption and tariffs.

David J. Bier, director of immigration studies at the Cato Institute, pointed out Indian H-1B professionals have contributed enormously to the U.S.—hundreds of billions in taxes, tens of billions in fees, and trillions in services. They are among the most peaceful, talented, and driven individuals to arrive on American shores. "Indian H1Bs contributed an unfathomable amount to America: 100s of billions in taxes, 10s of billions more in fees, trillions in services. Among the most peaceful, intelligent, interesting people to grace our shores. And what do we give back? Demonization & discrimination...," Bier wrote on X.  

Advertisement

US President Donald Trump has announced a sweeping overhaul of the H-1B visa program, citing abuse by companies replacing American workers with cheaper foreign labor. The executive order highlights rising unemployment among U.S. computer science graduates, layoffs linked to H-1B hiring, and national security concerns. Effective September 21, 2025, employers will be required to pay a $100,000 fee per H-1B petition for workers outside the U.S., with limited exemptions for national interest cases. The order also raises prevailing wage levels and prioritizes highly paid, skilled workers, marking a major shift in U.S. immigration and labor market policy.

The White House defended the overhaul, citing abuse of the H-1B program by firms allegedly replacing Americans with cheaper foreign labour. The order points to rising unemployment among U.S. computer science graduates, mass layoffs tied to H-1B hiring, and national security concerns.

Advertisement

Data from the U.S. Census Bureau underscores the policy debate: between 2000 and 2019, the number of foreign STEM workers in the U.S. more than doubled from 1.2 million to nearly 2.5 million. In the same period, overall STEM employment rose only 44.5%. In computer and math occupations, the foreign share of the workforce climbed from 17.7% to 26.1%. Critics, however, argue that while misuse exists, a sweeping fee hike risks undercutting the very engine of U.S. innovation.

(With agency inputs)

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