US lawmakers urge Trump to scrap $100K H-1B visa fee hurting startups

Seven US lawmakers, including both Democrats and Republicans, have written to President Donald Trump and Commerce Secretary Howard Lutnick, urging them to withdraw the $100,000 fee on H-1B visas. They warned that the recent changes could harm the country’s innovation-driven economy and weaken its global competitiveness.

In a joint statement, they said that while the H-1B visa system needs reform to better align with American values and workforce needs, the new rules — particularly the $100,000 annual fee — will make it difficult for many employers to hire and retain skilled foreign workers.

The letter was signed by Suhas Subramanyam, the son of Indian immigrant parents, along with several other members of the US Congress, including Sam T Liccardo, Jay Obernolte, María Elvira Salazar, Don Bacon, and Greg Stanton.

H-1B fee hike to hurt small firms and startups

The Congress members warned that the move could especially harm small and early-stage companies that depend on global talent to grow. “The $100,000 fee is prohibitively expensive for startups that are not yet profitable. It will stop them from recruiting needed talent, slow their growth, and reduce the number of Americans they employ,” the statement said.

They added that the uncertainty around the new visa proclamation could disrupt the operations of many innovation-driven employers. The members called for a bipartisan approach to high-skilled immigration reform that strengthens the US talent pipeline, prevents visa misuse, and creates more job opportunities for American citizens.

Skilled workers could move to competing nations

The Congress members also warned that if US companies are unable to bring in needed talent, many skilled workers may return to their home countries like India, China, Israel, or Europe to start competing companies.

“China already produces nearly half of the world’s top artificial intelligence (AI) researchers, more than twice as many as the US,” the letter stated, adding that America’s leadership in AI and quantum computing depends on attracting and keeping global talent.

Other countries are racing to attract global talent

The letter also highlighted that other countries are moving quickly to attract new talent. China has recently introduced a new “K-type” visa for young, skilled professionals in science and technology, and Canada has announced an easier visa programme for high-skilled workers.

These moves, it said, could make the US less competitive in the global race for innovation.

H-1B visa programme key to US tech growth

For decades, the H-1B programme has helped US startups hire highly skilled immigrants, many of whom studied in American universities. The letter further noted: “Research shows that companies with H-1B workers file more patents, grow faster, and hire more American workers.”

“Foreign-born entrepreneurs have played a major role in building the US tech economy. Nearly half of all American unicorn startups were founded by immigrants. Many of today’s leading tech firms, now worth a combined $20 trillion, may not have survived early on if such high visa costs existed then,” it added.

Starting September, the Trump administration imposed a $100,000 fee on H-1B visas, of which over 70 per cent of beneficiaries are Indians.