So, you’ve probably heard the news: a proposed rule wants to slap a $100,000 fee on companies for each H-1B visa worker they hire. Yeah, you read that right. One hundred thousand dollars.

It’s easy to see this as just another immigration headline, but honestly, it’s about so much more. This isn’t just about tech companies and visas; it’s a move that could send shockwaves through your local economy, from the coffee shop down the street to the university training our next generation.

Wait, What Actually Happened?

Back on September 19th, a new proclamation dropped that would jack up the cost of an H-1B visa from the usual few thousand bucks to a cool $100,000 per employee.

Quick details:

• Who pays? Employers, for any new filings after September 21, 2025.
• Any exceptions? Maybe a few for roles considered “in the national interest,” but the details are still fuzzy.
• The goal? To make companies think twice about hiring foreign talent and, ideally, hire more Americans.

On paper, it sounds simple. But the ripple effects? They’re anything but.

The Obvious Impact: Tech and Jobs

Let’s start with the easy stuff. Big Tech might grumble and pay the fee, but they’ll become incredibly picky, only going for the absolute top-tier talent.

For startups? It’s a potential disaster. That killer AI developer from abroad they were counting on? Suddenly, she costs as much as a new hire’s salary. Many simply won’t be able to afford global talent, which is a huge blow to innovation.

And for your average American tech worker? It’s complicated. You might see more job openings, but if innovation slows and companies struggle, those gains might not last.

The Hidden Impact: Your Neighborhood

This is where it gets really interesting. This policy doesn’t exist in a vacuum.

• Housing: Cities like San Francisco, Austin, or Seattle rely on high-earning professionals to keep housing demand and local tax revenue up. Fewer H-1B workers could cool housing markets — good for buyers? Maybe — but it also impacts city budgets.
• Local Banks: Fewer people means fewer mortgages, car loans, and investment accounts — a direct hit to community banks and wealth managers.
• Restaurants & Small Businesses: This one hits close to home. I was in my favorite Indian restaurant recently, and it hit me: many local businesses rely on the H-1B community not just as employees but as customers. Fewer customers means these staples could struggle.

What About Our Schools and Hospitals?

H-1B visa holders aren’t just coders. They’re researchers, doctors, and professors.

I took a cloud computing course at UT Austin a while back. The director, main instructor, and most guest speakers were from India. Their expertise was directly training American students for the workforce.

Cutting off that flow of talent could slow research output and weaken tech education — the exact opposite of the policy’s goal.

Let’s Talk Numbers

A quick reality check on who we’re talking about:

• Who are they? In 2023, 73% were from India, 65% worked in computer-related fields.
• Highly educated: Over 30% held a Master’s or Doctorate.
• Economic impact: Each H-1B position creates ~7.5 additional U.S. jobs. Median salary: $118,000, generating billions in taxes. Immigrants co-founded over half of America’s startup unicorns.

Impact on American Workers

At first glance, a $100,000 fee might seem like a win for domestic tech talent. Companies facing this massive cost could prioritize hiring Americans, opening more positions and potentially raising wages.

But here’s the nuance: it’s not that foreign workers inherently have skills that American graduates from Stanford, MIT, Georgia Tech, or Cal Berkeley lack. The reality is, many U.S. employers have prioritized H-1B workers to save on labor costs and keep salaries lower.

With this fee, companies may be forced to reconsider their cost-driven hiring strategies. Some might genuinely invest in local talent, while others could look for loopholes, outsourcing work or hiring contractors abroad to sidestep the fee.

So, while the policy could create opportunities for domestic workers, the effect isn’t guaranteed. Whether it leads to higher wages or more hiring depends on how employers respond—and whether they actually commit to investing in the U.S. workforce.

The Bigger Picture: Are We Shooting Ourselves in the Foot?

While the U.S. debates this fee, other countries aren’t standing still. China, for example, pours resources into tech with a massive engineering workforce and advanced infrastructure projects.

The U.S. built the foundation for modern tech, but foreign talent has been instrumental in helping us scale and stay competitive. Limiting access isn’t just about keeping people out; it’s a “reverse brain drain”, where we risk sending critical talent — and their innovations — to competitors.

The Bottom Line

This $100,000 fee isn’t just an administrative change; it’s an economic earthquake. Protecting American workers is a valid goal, but we need policies that boost domestic hiring without cutting ourselves off from global talent that fuels innovation, trains the workforce, and supports local communities.

The ripples from this decision extend far beyond Silicon Valley HR departments.

What do you think? Is the fee a necessary protection or a risky gamble? Let me know in the comments.

About the Author

Paul A. Jones Jr. is a software engineer and legal tech founder developing tools for professionals in law and other regulated industries. He writes about systems thinking, modern workflows, and SaaS applications at PaulJonesSoftware.com. Follow him on Twitter: @PaulAJonesJr.

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