Potential costs could reach $40 billion? Sky-high H-1B visa fees may severely impact the profitability of American tech companies

According to the Zhitong Finance APP, technology companies that currently dominate the major benchmark indices in the U.S. stock market are being forced to confront a significant spending decision. Recently, U.S. President Trump signed an announcement raising the fees that companies must pay for H-1B visa applicants from several thousand dollars to $100,000 per year. This new regulation took effect at 12:01 AM Eastern Time on September 21.

As a result, as of the time of publication, the three major U.S. stock index futures have declined, with Dow futures down 0.14%, S&P 500 futures down 0.13%, and Nasdaq futures down 0.14%.

The Trump administration's decision aims to encourage companies to hire American workers. Trump stated when signing the announcement that if companies do not want to pay $100,000, they can hire Americans instead, claiming that the new policy "effectively gives companies the incentive to hire Americans." U.S. Secretary of Commerce Wilbur Ross stated that this fee is "annual" and applies to both initial applications and renewals, and companies need to decide whether this person is worth paying the government $100,000 each year. If not, they should send them back to their home country and hire Americans. Ross added that the core of immigration policy is to hire Americans while ensuring that only top talent is brought in.

However, this decision by the Trump administration will impact tech giants such as Amazon (AMZN.US), Google (GOOGL.US), Tesla (TSLA.US), Microsoft (MSFT.US), and Meta (META.US). These companies have relied on the H-1B visa program to hire foreign employees, including software development engineers. Reports indicate that in the first three quarters of the fiscal year 2025, which ended on June 30 of this year, Amazon alone had over 14,000 approved H-1B visas, while Microsoft and Meta each had over 5,000 approved.

On September 20, several large U.S. tech companies, including Microsoft, Amazon, and Apple (AAPL.US), urgently sent emails to internal employees advising those holding H-1B visas to remain in the U.S. and suspend any travel plans to avoid difficulties returning after the policy takes effect. Google reminded employees in an email that if they hold a valid H-1B visa and are currently outside the U.S., they should return and enter the U.S. by September 21.

In response to the collective panic among companies, the White House issued a statement on social media on September 20 clarifying that the new policy only applies to future visa applicants and does not affect existing visa holders, visa renewals, or even those who have participated in the 2025 lottery. The White House also emphasized that the $100,000 fee is a one-time charge, not an annual fee. This statement is in stark contrast to Ross's earlier remarks.

The question remains whether this executive order from the Trump administration can truly be implemented. Currently, like tariffs, this is a reality until challenged in court According to Pew Research data, there are currently about 400,000 H-1B visa holders in the United States, including new applicants and those continuously renewing their visas. The ultimate goal for H-1B visa holders is usually for their employers to apply for green cards (EB2 or EB3 category for outstanding talents). This effectively "locks" employees with their employers until they obtain a green card. Due to the severe backlog in this category of green cards, even if an application is submitted, actually obtaining a green card is almost just a dream. Employers are also aware that submitting green card applications for these backlog categories can extend their employees' tenure. H-1B visas can typically be extended for up to 6 years, but green card applications allow them to submit additional I-140 forms, enabling employees to work indefinitely while waiting for their green cards.

Considering that there are 400,000 H-1B visa holders in the U.S., and Lutnik hinted that this fee may eventually apply to everyone (regardless of current status), this means employers would need to bear an additional $40 billion in new annual application fees. Although the White House has clarified this statement, details will emerge as the debate over the new executive order unfolds this week.

Moreover, cultivating a sufficient number of domestic talents in the U.S. to replace H-1B visa holders is equally expensive. This means that whether companies retain all H-1B employees or not, it will become a significant cost consideration.

In an already highly valued U.S. stock market, companies (especially large tech firms) are expected to operate perfectly. This additional expenditure and potential slowdown in project development could weigh on short-term profits until a solution is found. Additionally, rental income from properties in tech-heavy areas (such as Silicon Valley) largely comes from this foreign talent pool. If they were to leave quickly, it could negatively impact the yields of residential and office real estate.

Analysts point out that some recent compensation packages (including stock compensation) can reach $500,000 or more annually. H-1B fees could serve as a bonus incentive to replace stock compensation or other performance rewards. This is the most likely scenario. U.S. tech companies still offer the most generous compensation globally, so talent will continue to flock in. If an average fee of $100,000 is spread across the compensation pool, reducing stock compensation or performance bonuses, these employees would still receive the most generous compensation globally.

Another measure from the Trump administration is also noteworthy. The Trump Enterprise Gold Card is issued to corporate sponsors for one or more employees. When applying, companies must pay a non-refundable processing fee for each employee. Corporate sponsors can apply for multiple employees at once. After each employee completes the review, a "gift" of $2 million must be paid to prove that the employee will bring significant benefits to the U.S. The advantage of the corporate gold card is that companies can stop sponsoring one employee and transfer the previously paid gift to a new employee without having to pay the $2 million again. The corporate gold card requires a small annual maintenance fee and transfer fee.

This $2 million gift corresponds to the EB2 green card application. This may be the Trump administration's attempt to block the "backdoor" method of indefinitely retaining H-1B employees through I-140 applications. Now, retaining an outstanding employee after the 6-year H-1B period may cost up to $2 million. The regular "gold card" allows individuals to directly gift $1 million to the U.S. government to obtain permanent residency—if someone happens to have that amount of money and finds it economically viable (perhaps they will) Most large tech companies will have employees bear this cost themselves, and employees will still accept it. Some workforce reductions will occur, but artificial intelligence can replace some non-top talent. It is questionable whether this executive order may force large tech companies to establish vocational schools to train a large number of domestic American workers. The Trump administration also seems unlikely to stop the restrictions on H-1B employment. If the desired results are not seen, more obstacles from the Trump administration may be on the way