Trump's H-1B fee hike could reshape US industries and global talent flows

Explore the "winners and losers" of the Trump administration's H-1B visa fee

In this episode, experts discuss the rationale behind the new $100K fee, citing concerns about abuse of the H-1B program. Some economists warn that it could spur offshoring, reduce innovation, and create ripple effects on wages and talent supply.

The Trump administration said the new H‑1B fee curbs abuse but still attracts top talent

In announcing a fee on new H‑1B petitions, the Trump administration claimed the visa was exploited to replace American workers and suppress wages. Officials argued that a steep fee would deter abuse while still allowing employers to bring in the "best of the best" temporary foreign talent.

The new H-1B fee will have a major negative effect on India

Because those born in India receive about 70% of H-1B visas, the $100K fee could sharply limit Indian IT firms' access to US markets and redirect skilled Indian workers to other countries.

Study shows H-1B visas depress wages and reduce consumer tech costs

A paper from the National Bureau of Economic Research found that without H-1B workers, American computer scientists would earn 2.6% to 5.1% more and domestic employment could rise by 11%, but consumers would pay more for advanced technology, and output would decrease.

President Trump implemented a $100K fee on new H-1B visa applications

In September 2025, President Trump announced a $100K application fee for new H-1B petitions, framing it as a way to limit misuse of the program. His administration later clarified it was a one-time fee for new applicants, not an annual charge. (Some users may experience a paywall.)

Critics call H-1B the "outsourcing visa"

Large IT firms, especially in India, have used H-1Bs to place workers in US offices, train them on client systems, and then shift the work overseas at lower cost. This practice fuels criticism that the visa facilitates offshoring.

Studies show H-1B workers help address shortages in STEM fields

Research finds that unemployment rates in occupations employing large numbers of H-1B workers remained low between 2004 and 2023, even during the pandemic. Other studies suggest H-1Bs complement US workers in STEM fields and expand job opportunities.

Studies link H-1B workers to patents, innovation, and productivity growth in the US

Research shows that H-1B visa holders boost innovation: Firms that employ many H-1Bs file more patents. Economists estimate that foreign STEM workers helped explain 30% to 50% of nationwide productivity growth from 1990 to 2010, while immigrant inventors disproportionately generated high-value patents.

Only about 70 employers have paid Trump's $100K H-1B fee as of February 2026

Only about 70 employers have paid the $100K fee for certain H-1B hires since it was imposed by presidential proclamation in September 2025, a DOJ attorney said in court, as judges weigh whether the charge requires explicit congressional authorization.

H-1B visas let US employers hire skilled foreign professionals in specialty occupations

The H-1B is the main US program for temporary high-skilled workers, covering roles in technology, engineering, medicine, and finance. Issued for up to six years, it often serves as a pathway to permanent residency.

H-1B approval rates have swung sharply between administrations

Denial rates for new H-1B petitions rose from 6% in 2015 to 24% under the Trump administration as officials tightened standards. Under Biden, approvals rebounded, with denials falling to just 2% by 2022—the lowest since 2009.

Congress temporarily raised the H-1B cap during the dot-com boom

To meet soaring demand for tech talent in the late 1990s, Congress lifted the H-1B cap from 65,000 to 195,000 visas between 2001 and 2003. The increase—tied to the dot-com bubble—lapsed once demand slowed, but an additional 20,000 slots for advanced degree holders were added.

High demand forces H-1B visas into a lottery system each year

Because demand far exceeds the annual cap—65,000 new visas plus 20,000 for US master's graduates—employers must enter a lottery for new H-1B slots. In recent years, several hundred thousand petitions have competed for just 85,000 openings.

Nearly 400,000 H-1B applications were approved in 2024

In 2024, nearly 400,000 H-1B petitions were approved, with about 65% of them renewals for existing workers. Roughly 70% of recipients were born in India, and nearly two-thirds of all H-1B jobs were in computer-related fields.

Employers must apply for H-1B visas on behalf of foreign workers

To hire an H-1B worker, US employers first file with the Department of Labor, then petition the US Citizenship and Immigration Services. They must attest that they won't replace American workers, and that they will implement stricter rules for firms that rely heavily on H-1B visas.

Worth more than $14T, Silicon Valley may be getting too expensive for future founders.

Some argue that restricting illegal immigration would raise wages for lower-income American workers

The Heritage Foundation argues that illegal immigrants' willingness to work for below-market wages suppresses wages for low-skilled American workers—and that reducing illegal immigration would increase wages and job opportunities, particularly for workers without a college degree.

AI investment may be the next major economic bubble

A video examines the massive surge in AI spending—forecast to hit $500B by 2026—and how this may be propping up a fragile US economy. Experts warn that if AI investment slows or under-delivers, the consequences could be felt in markets, jobs and growth.

Track how American tariffs have impacted different countries and industries.

Immigrants generated about $1.7T in economic activity in 2023 and paid roughly $652B in taxes.

The overall economic effect of President Trump's 2025 tariffs remains unclear

Researchers from UCLA and Yale found that tariff revenue and gains to US producers largely offset importers' costs—but the broader picture is murkier, as the trade deficit rose, manufacturing jobs declined, and 90% of tariff costs were passed through to importers rather than absorbed by foreign exporters.

Artificial intelligence might make companies too efficient—which could trigger deflation

AI innovation will likely decrease costs for companies and lead to a large increase in supply. That dramatic increase could conceivably bring prices down but keep supply high. However, AI's real impact will likely be complicated by its impact on human labor and the cost of new technology.

The Immigration Act of 1990 created the modern H-1B visa

Signed by President George H.W. Bush, the 1990 Immigration Act split the broad H-1 category into specialized visas, establishing the current H-1B for "specialty occupations" requiring at least a bachelor's degree. The H-1A, for registered nurses, ended in 1997.

See a chart showing how US tariff revenue has grown in recent years.

Trump's 2025 tariffs represent a significant break from the rules-based trade order

The Trump administration imposed broad tariffs on other countries outside WTO rules in 2025, claiming that those countries had long violated trade agreements and that the US was simply leveling the playing field.

An economic evaluation of US tariffs

Most economists agree that the implementation of large-scale tariffs on foreign goods would hurt both the American and global economies. This video from The Wall Street Journal explains the rationale for tariffs as a tool for domestic job creation, but explains why they may hurt the overall economy.

Steve Jobs once explained why iPhones can’t be made in the US

In 2011, then-President Obama asked Steve Jobs, “What would it take to make iPhones in the United States?” Steve Jobs said it wasn’t a viable option, explaining that overseas factories had far outpaced the US’s in terms of skill and speed.

The venture capital mindset is shaping the US into a 'portfolio state'

For decades, the US has operated as a low-regulation, private-sector-driven, globalized economy (also known as neoliberalism). In recent years, the Trump administration has taken direct stakes (rather than providing subsidies) in private companies with strategic products like semiconductors and rare earths. This paper argues the approach allows the US to capture the upside of growth.

The first H-1 visa was created in 1952

Congress established the original H-1 visa in 1952 through the Immigration and Nationality Act of 1952 to let US employers temporarily hire foreign professionals of "distinguished merit and ability" when qualified American workers were unavailable—a precursor to today's H-1B program.

Over 1.9 million Americans—more than a quarter of those unemployed—have been classified as 'long-term' unemployed in a given month in 2026, meaning they've been out of work for at least 27 weeks.

Auto and consumer goods companies absorbed billions in costs due to President Trump's 2025 tariffs.

The US youth unemployment rate jumped from 6.6% in 2023 to 10.4% in 2025.

Data center companies are worsening housing undersupply in some regional markets.

Since 2025, AI data center growth has created shortages and price hikes in graphics processing units and their supporting hardware, including high-speed memory.

In 2025, American tech companies will spend $300B to $400B on AI

That is, in nominal dollars, more than any group of companies has ever spent to do anything. Notably, these companies are not remotely close to earning $400B on artificial intelligence.

Some argue that America is too dependent on consulting

Many major companies in America—not to mention the federal government—spend thousands of dollars a month paying to contract major consulting firms.

A podcast on America’s coming demographic crisis

This podcast explores how America’s coming demographic crisis is bad for employers. According to Bloomberg, businesses still need humans to make the economy work. However, too few workers in the US are actually working, and too few people are...

Policymakers make complex trade-offs when considering tariffs—while they can generate government revenue and encourage the consumption of locally produced goods, they can also lead to higher consumer prices and may negatively impact economic growth.

Listen to legendary investor Marc Andreessen argue against the 'lump of labor fallacy,' the idea that there's a finite amount of work in an economy.

One of the driving forces behind an increase in pay transparency laws is their ability to help close the gender pay gap.

Since 2018, pay transparency laws have been enacted in more than a few states and cities across the US. But what's driving the trend, from a legal perspective? This law review article attempts to answer that question, citing factors such as the Great Recession and the gender pay gap—click here to learn more.

Hormone and peptide compounds imported from China soared in 2025

US customs data indicates that these imports doubled to $328M in the first three quarters of 2025, from $164M in the same period of 2024. The imports include GLPs, among other products. (Some users may experience a paywall.)

Fast fashion companies such as Temu and Shein often took advantage of the de minimis exemption, a US tariff loophole that ended in 2025.

Beyond oil, the Iran war has pushed up costs on fertilizer, prescriptions, and mortgages.

Read about the tax implications of remote work's increasing popularity

Tax complications can arise when a remote employee opts to work from a state where their employer had not previously done business. Demand for remote jobs has remained high since the pandemic accelerated remote work's popularity.

Research shows that increased pay transparency could result in lower wage growth and a potential decrease in worker bargaining power.

Research on pay transparency's impacts has been limited given the short amount of time since American states began passing pay transparency legislation. However, this early study from researchers out of Brown and Harvard found that increasing pay transparency could have the potential to decrease worker bargaining power, resulting in lower average wages for employees. Read the research here.

Nearly 9 in 10 Americans were annoyed by tipping as of 2025

That’s a sharp increase from the 75% who thought tipping culture had gone too far in 2024. One potential culprit? The proliferation of tipping screens in places outside sit-down restaurants, such as coffee shops and hair salon. Three in 10 Americans say they give less when presented with tipping screens.

Listen to Palantir CEO Alex Karp's outlook for how AI will change the economy.

Despite the Supreme Court ruling that President Donald Trump's 2025 tariffs were unconstitutional, billions of dollars in refunds remain unresolved

Over 2,000 lawsuits seeking refunds have been filed by major companies, including FedEx and Costco, but CBP says its systems can't handle the volume. Interest on unpaid refunds is accruing at an estimated $650M per month.

Trump's 2025 asylum suspension departed from a policy framework in place since 1980

In January 2025, President Trump issued an executive order suspending the asylum program and halting application processing at the southern border. This represents a departure from recent American asylum policy traditions and international humanitarian commitments.

The future of higher education in the US

In this episode of Wired’s Have a Nice Future podcast, education journalist Paul Tough joins hosts Gideon Lichfield and Lauren Goode to tackle a big question: Is attending college in the United States still worth it? As tuition climbs and the payoff feels murkier, they dig into what’s broken in higher education, and whether it can be fixed.