Will a $100K H‑1B Fee Gut Silicon Valley’s Hiring?

Silicon Valley’s dependence on the H-1B program is no secret. An abrupt six-figure filing fee for new petitions would be a jolt to the system not because Apple, Facebook and others can’t afford it, but rather because it would rewrite the economics of how U.S. companies bring in specialized talent. The relevant question is not whether Big Tech can afford to pay it — it’s how the fee would reshape hiring, timing and global footprints.

What the $100,000 H‑1B Filing Fee Policy Really Does

The executive order imposes a $100,000 fee on new H-1B petitions. Initial comments from senior administration officials sowed confusion over whether this is meant as a recurring charge or a one-off punch; later, White House clarification characterized the fee as a one-time hit per petition. Travel restrictions for H-1B holders were also confused in advance of officials stating that regular reentry rules continue to apply.

The order has a sunset clause after the next lottery, but it is extendable.

Just that uncertainty will lead both employers and their workers to hedge, even before a dollar is disbursed.

Which Companies Currently Hold the Most H‑1B Visas

USCIS disclosures indicate that the largest recipients are offices of cloud, e-commerce and enterprise software companies — in addition to India-based IT services firms that continuously assign workers on projects at client facilities within the U.S.

Amazon topped recent cycles with about 10,000 approvals in the last year and some 9,300 in the previous one. Amazon Web Services included about 2,300 more and Amazon Data Services, approximately an additional 500. That is just a small slice of its overall corporate headcount, but a large absolute number if each extra petition has a six-figure price tag.

Other top United States tech brands, such as Microsoft, Meta, Apple and Google, all cleared the low-to-mid thousands in the most recent cycle. Oracle, Intel and Nvidia each logged about 1,000 to 2,000. Tata Consultancy Services, Cognizant and Infosys together won tens of thousands on the services side — further evidence that these have been large-volume, long-standing users of the H-1B to place personnel for client engagements.

The cap will continue to be 85,000 new visas each year, although demand has outstripped supply in recent lotteries, according to USCIS. This is echoed by Pew Research’s annual data, which show that India is the birth country of many H-1B professionals, with around seven-in-ten approvals coming from Indian-born workers.

Will This New Fee Actually Gut Silicon Valley Hiring?

Probably not — at least not immediately. Deep-pocketed firms can afford a one-time $100,000 fee for priority roles. If you’re a machine learning engineer making six figures, it’s an uncomfortable but ultimately manageable line item. Big companies will triage: pay for top recruits, pause on marginal cases and double down elsewhere, perhaps via alternative pathways like O-1 “extraordinary ability” visas or employment-based green cards.

The larger near-term blow falls on high-volume H-1B employers. (The India-based IT companies that file thousands of I-129s a year would experience 10-figure or 9-figure outflows if they were to maintain output.) That should all but ensure fewer petitions, more selective filings and more nearshore or offshore delivery. Or, in other words, clients will still have access to the talent — just not on U.S. soil.

Start-ups and midsize companies may be the quiet losers. They don’t have the resources to normalize a six-figure filing fee and the legal muscle to move nimbly. Some will delay hiring, recruit online from overseas or rely on contractors. Others will pursue O-1s, which are more difficult to win in bulk.

The Cost Math CEOs Think They Are Running

For your standard H-1B, the loaded first-year costs (wages, taxes, benefits, moving expenses) are already apt to peak above base salary. Add the upfront $100,000 and first-year costs can rise 30–50% depending on compensation. Multiply that by dozens — or thousands — of new petitions, and you have nine-figure budget decisions. Interviews with tech leaders on CNBC suggest a cautious openness to “streamlining” and “aligning incentives,” but not trade-offs of cash until they have clarity and predictability.

There’s also a timing issue. If the fee is due upon filing, employers take on risk well in advance of lottery results. If it is owed at the time of approval, companies have to absorb lumpy costs that interfere with workforce planning.

Security, Fraud Concerns and Policy Justifications Cited

The administration has cast the fee as a deterrent to abuse and a nudge toward “training Americans.” The order cites some cases of displacement in IT and points to the program’s skew in favor of computer professions. USCIS has said it has broadened investigations of fraud and denied or revoked when appropriate. Critics say that a broad-based price increase unfairly punishes responsible employers along with the bad actors, and does little in the short term to expand domestic training pipelines.

Global Talent Flows Rarely Remain Static for Long

Policy shocks reroute talent. Canada, the U.K. and the U.A.E. have all aggressively pursued tech workers with more flexible programs. If older, more experienced engineers choose to stay or return home, it could be good news for India’s startup ecosystem. India’s Ministry of External Affairs has cautioned about families being torn apart by sudden rule changes — a reminder of human stakes behind policy tinkering.

Bottom Line for Silicon Valley Under a $100K H‑1B Fee

“Gutting” is unlikely, but the fee would drive a reset. Big Tech will pay more for mission-critical hires and push more work to hubs outside the U.S. Services firms will file fewer petitions and change delivery models. Start-ups will feel the pinch more than most. Barring Congressional intervention with broader reform, anticipate a year of legal fine print, budget triage, and an under-the-radar ramp-up for distributed teams.

The U.S. can put a price of access high — or it can compete for the best in the world. A $100,000 gate fee guarantees one thing: fewer bets made on U.S. soil.