When the Trump administration announced a staggering $100,000 fee for each new H-1B visa application on September 19, 2025, the move sent shockwaves through America’s business, education, and technology sectors. Nearly a month later, the ripple effects are being felt in boardrooms, classrooms, and startup incubators from Wisconsin to Montana and beyond. For many, the policy is more than just a headline; it’s a potential game-changer for talent pipelines, business strategies, and even the future of American innovation.
According to Wisconsin Public Radio, the impact is especially acute in states like Wisconsin, where 372 employers currently hire 2,245 H-1B workers. These visas, designed for highly skilled professionals in specialty occupations, have long been a lifeline for sectors like technology, education, and healthcare. Previously, the cost for employers to sponsor an H-1B worker was just a few thousand dollars, depending on the size of the company. Now, with the fee set at $100,000, the calculus has changed dramatically.
The Trump administration argues that the new fee is a necessary measure to "curb abuses that displace U.S. workers and undermine national security." The White House has suggested that exemptions could be made if a case is deemed "in the national interest." But critics say the policy is both legally questionable and economically disruptive. In fact, a group of employers filed a lawsuit in early October, challenging the administration’s authority to change a visa system established by Congress.
For companies in the Midwest, where profit margins are often slimmer than in Silicon Valley, the fee could be a dealbreaker. Dale Kooyenga, president and CEO of the Metropolitan Milwaukee Association of Commerce, told Wisconsin Public Radio, "The reality is a lot of companies that rely upon these are not high margin tech companies with billions of dollars in capital. Our fear is that it’s prohibitively expensive for companies in the Midwest, where the cost of living is lower and the margin for these mature industries is lower." Kooyenga also worries that international firms like Fiserv, Wisconsin’s top H-1B employer, may choose to keep their talent offshore rather than bring them to cities like Milwaukee. "With that type of fee, does it make sense to bring them to Milwaukee, Wisconsin? Or does it make sense to keep them in a part of the world where nearly all large companies have the ability to outsource parts of their workforce?" he asked.
Legal experts are also raising red flags. Grant Sovern, an immigration attorney at Quarles & Brady in Wisconsin, expressed skepticism that the fee will ever be implemented, citing a lack of clarity about how it would be collected or enforced. "There is no way to pay that fee or to show someone that you paid it so you could get into the country if you have an H-1B," Sovern told WPR. He also questioned the legality of the fee itself: "This $100,000 fee isn’t at all related to the cost of processing the H-1B petitions. The law does require that any filing fee has to be related to what it costs to get it done."
Despite the administration’s claims that the fee will prevent companies from using the program to suppress American wages, Sovern points out that robust regulations already exist. Employers must pay the prevailing wage for each position and post notices for current employees. They’re also required to certify that there have been no recent layoffs or strikes. "Employers are only hiring if they really need somebody because of these extra costs," Sovern said.
The new policy’s impact isn’t limited to established companies. According to CNBC, the $100,000 fee is already disrupting hiring for small businesses and venture-backed startups, particularly in high-tech and AI-related roles. Recruiters and entrepreneurs say the restrictions are shrinking the talent pool and slowing hiring. "For the highly specialized talent in the world of AI, there’s probably like 500 people in the country that understand how to build an LLM model from the ground up. We don’t have enough talent domestically to fill some of those roles," said Somak Chattopadhyay, founder of Armory Square Ventures and a member of New York State’s Emerging Technology Advisory Board.
Some venture capitalists, including LinkedIn founder Reid Hoffman, are lobbying for lower fees for true startups and the removal of visa caps, which currently stand at 65,000 regular H-1B visas plus 20,000 for advanced degree holders. In a recent episode of his "Possible" podcast, Hoffman argued that these reforms are essential for keeping America competitive in the global talent race.
The fee is also pushing highly skilled immigrants to seek jobs at large companies that can absorb the cost, leaving startups and smaller firms at a disadvantage. Eva Yao, founder of Boulder-based Flari Tech and a former H-1B recipient, told CNBC, "I do have American candidates but when I look at post docs and PhD students, so many are foreign students. I am in a very specialized field where we look at scientists, researchers and engineers in cutting edge areas. The first thing I’ll ask is what is your status. It’s an unnecessary distraction." For her company, the fee is a major hurdle to hiring the best talent.
There’s also a growing sense that companies will need to adapt by upskilling current employees, expanding remote work options, or building stronger recruiting pipelines with American universities. Amy Dufrane, CEO of HRC, noted, "This came out of left field." She said companies are now considering long-term strategies like training existing staff and partnering more closely with local schools. Brad Bernthal, director of the Silicon Flatirons Center at the University of Colorado Boulder, sees potential for "near-shoring"—outsourcing work to countries in similar time zones, like Poland.
But perhaps the most overlooked victims of the new policy are rural school districts. NPR reports that many such districts rely on international teachers who use H-1B visas to fill persistent staffing gaps. In Hardin, Montana, for example, Superintendent Tobin Novasio says, "We don’t have candidates." Out of 150 teachers, about 30 are on teaching visas. The new fee, he warns, could "kill the H-1B for education." With average teacher salaries in Montana around $58,600, paying a $100,000 visa fee is simply out of reach. Sasha Pudelski, director of advocacy for the AASA (the School Superintendents Association), called the impact an "unintentional consequence" and is lobbying for educators to be exempted.
Meanwhile, the Trump administration has also proposed shifting the H-1B selection process from a lottery to a system favoring the highest earners, a move that could further disadvantage teachers and other lower-paid professionals. As Pudelski put it, "As you might imagine, education is not a particularly lucrative profession. So we’re very worried that this could present a more significant long-term barrier to utilizing these visas for educators."
As companies, schools, and policymakers scramble to adapt, the debate over H-1B reform rages on. Some see the new fee as a necessary step to protect American workers; others warn it could stifle innovation and cripple industries that rely on global talent. For now, one thing is clear: the $100,000 H-1B visa fee is forcing a reckoning across America’s economic and educational landscape, with consequences that will be felt for years to come.
