Trump's $100,000 H-1B Visa Fee May Slash US Jobs Instead Of Boosting Them: White House Calls Out 'Massive Abuse'

Experts warn that the Trump administration's decision to raise the H-1B visa fee to $100,000 could unintentionally reduce U.S. jobs and slow economic growth.White House Calls Out ‘Massive Abuse’ Of H1-B Visa SystemH-1B visas allow U.S. companies to hire highly skilled foreign workers when domestic talent is unavailable. The administration says the fee increase encourages companies to hire American workers instead. "No ‘economic study' can change the reality lived by many Americans across the country who bore the brunt of the massive abuse of the H-1B system," White House spokesperson Taylor Rogers told Business Insider.Experts Warn Companies May Offshore Jobs InsteadLabor market researchers argue the policy may backfire. "Unless there is a strong need for them to be in the U.S., companies are probably going to try to offshore them," said Britta Glennon, assistant professor at the Wharton School. Her research shows that for every 10 H-1B visas not issued, large firms often hire four foreign workers abroad. Madeline Zavodny, an economics professor at the University of North Florida, added, "If U.S. employers bring in fewer H-1B workers, that could reduce demand for roles that support those workers — people in HR, marketing, and other IT colleagues."H-1B Visa Fee Sparks Concerns Over US Innovation And Talent DrainLast week, investor Kevin O'Leary, JPMorgan Chase & Co. (NYSE: JPM) CEO Jamie Dimon, and economist Paul Krugman all raised concerns about Trump's $100,000 H-1B visa fee, warning it could hurt U.S. innovation and economic leadership.O'Leary said the fee risked pushing top talent abroad and preventing the next generation of American startups from emerging. He noted that companies like Apple Inc. (NASDAQ: AAPL), Oracle Corp. (NYSE: ORCL) and Alphabet Inc.’s (NASDAQ: GOOG) (NASDAQ: GOOGL) Google, which started in garages, might not have succeeded under current immigration rules, and argued that graduates from top schools should be allowed to stay and build companies.Dimon expressed support for a merit-based immigration system and commended President Donald Trump's focus on border control while urging consideration of "good immigration."He highlighted that visas are critical for moving global employees to new roles and emphasized America's immigrant roots as a source of national strength.Krugman warned that the fee threatened U.S. economic and technological leadership. He said the administration's sudden rollout caused "panic and chaos" among workers and businesses, and that the clarification limiting the fee to new petitions did little to prevent initial disruption.Netflix Inc. (NASDAQ: NFLX) co-founder and former CEO Reed Hastings backed President Trump's controversial $100,000 H-1B visa fee, calling it an "effective way" to reform the program's lottery system. Trump's H-1B Visa Plan Stuns Big Tech, White House Says $100,000 Fee Is One-Time Only Photo courtesy: ShutterstockDisclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.