Trump’s $100,000 Fee Stuns US Tech, Universities, Foreign Workers

International students and skilled professionals are increasingly having difficulties getting employment in the United States due to the stricter immigration policies and high charges. Large tech companies, startups, and universities are also feeling the pressure as the world is becoming global, with new avenues to attract foreign talent being created in Canada and Germany. Find out how this policy change is transforming the employment opportunity landscape of H-1B visa applicants and the American labour market.

The Trump Administration’s New Fee: Shockwaves Through US Hiring

The new H-1B visa petition fee of $100,000, announced in September 2025, was a surprise financial expense to the industry, particularly to start-ups and medium-sized companies. It is a fee that is only payable to new applications submitted after September 21, 2025, which is an exception to renewals and existing visa holders, but a major cause of uncertainty among applicants who want to transfer or get new positions.

• Stricter audits and a lottery based on wages are also meant for companies suspected of abusing the visa program.

• The policy was positioned as an act to save American jobs, but business leaders and educators note that the policy may lead to the outsourcing of innovation and talented employees.

Also Read: UK Visitor Visa: Complete Application and Guidelines

Visa Sponsorship Collapse and the Impact on International Students

According to the statistics provided by career platform Handshake, which is featured in Bloomberg and Economic Times, the employment opportunities with visa sponsorship dropped by 10.9 per cent in 2023 alone, falling to only 1.9 per cent in 2025, the largest increases in the technology sector.

• There is a high exposure of tech companies such as Amazon, Microsoft, and Meta, which lowers hiring and sponsorship.

• The most affected applicants are the Indian nationals who traditionally consume more than 70% of H-1B visas, although applicants from China and the Philippines are also not spared.

Layoffs in US Tech and Their Ripple Effects

The US tech layoffs have gone up: giant American corporations such as Meta, Microsoft, Salesforce, and Amazon cut tens of thousands of jobs in 2024-2025. Numerous H-1B and L-1 visa holders were not spared by the impact, and up to 80,000 Indian workers could lose their jobs at the end of 2022.

Also Read: US Military Deports Migrants to India: A New Chapter in Immigration Policy

Effects on University Recruitment and Research

Within the financial and academic repercussions of this, the many universities and other public institutions that were formerly dependent on foreign faculty and graduate students are now scrambling. Examples include Columbia University and Stanford, which have experienced declining numbers in applications by foreign students, with the potential of losing as much as $7 billion in revenue and more than 60,000 jobs if the negative trends continue until 2025.

• US citizens have now taken precedence in hiring by Florida state directives, and the chances of international scholars are even further reduced.

• Education analysts fear that such reforms will have the devastating effect of limiting the US research output and academic excellence.

Unemployment Rates Among Recent Graduates Rise

Having limited sponsorship prospects and stricter visa regulations, new college graduates, both domestic and foreign ones, are finding the job market more difficult. As of April 2025, the highest level of unemployed graduates in the age group of 22-27 was 5.8% since 2021. The hardest hit are first-time job-seekers of the Gen Z generation.

This disparity between the unemployment rates of recent graduates and the overall workforce is progressively increasing.

• Policy Changes: Policy on the OPT, EAD Regulations, and Company-specific policy.

Also Read: Trump's AI Ambitions Clash with Immigration Stance: A Dilemma

Policy Shifts: OPT, EAD Rules, and State-Level Directives

October 30, 2025: The Department of Homeland Security terminates the automatic renewal of Employment Authorisation Documents (EADs) of some non-citizens, including H-1B spouses, that result in joblessness and financial burden to two-income families.

In Florida, H-1B is prohibited in the employment of public universities, giving preference to hiring US citizens.

Global Competitors Gain as US Pulls Back

Canada, Germany, and China react to the US freeze on hiring by increasing their own skilled migration programs, which offer competitive options to international talent.

• Canada introduces a fast-track program to H-1B workers, whereas Germany's and China's initiatives are aimed at STEM experts who were considering positions in the US.

• Near sourcing and off-shoring emerge as the trend among US tech firms that are too incensed to meet the high visa charges.

Also Read: US Issues Over 1 Million Non-Immigrant Visas to Indians

Conclusion

The decline in H-1B hiring is altering the US labour market recruitment and retention of skilled workers, causing heightened competition and interest towards foreign markets among new graduates and tech-savvy workers. With the fee of a hundred thousand dollars and new visa regulations forcing employers to re-analyse their hiring choices, the status of America as the place where any talent in the world should go is being challenged by competitors that are only too happy to take the place of America. For official and detailed information on the H-1B visa program, including application procedures and current policies, please visit the United States Department of Labor's H-1B Program page. To know more about H-1B visa visit TerraTern now!