What Does Trump’s $100,000 H-1B Visa Fee Mean for Tech Hiring?

On September 19, 2025, the White House announced a stunning policy shift: a $100,000 fee on new H-1B visa applications. Until now, fees ranged from $2,000 to $5,000 depending on company size. While the fee does not apply to existing visas or renewals, it immediately changes the calculus for the many US businesses that have long relied on international talent to fuel growth.

As CEO and co-founder of Terminal, I have seen firsthand the value global engineers bring to US companies. These changes will make life harder for businesses already battling a tight labor market. But the reality is, the H-1B visa program has been broken for years, and this moment may finally force companies to confront that truth.

How the H-1B Visa Works and How It Has Been Distorted

The H-1B visa was created to allow US employers to fill roles in “specialty occupations” when domestic talent was not available. By design, it was supposed to be a lifeline for hard to find technical skills.

But over time, too many companies have gamed the system. Outsourcing firms and high volume IT contractors flood the lottery with applications, securing thousands of visas not necessarily for critical innovation roles but for cost driven placements. This practice has crowded out smaller employers who truly need specialized talent. In some cases, American workers have even been displaced, training their replacements before being laid off.

The new $100,000 fee is framed as a deterrent to these abuses. But let us be clear: it will not fix the structural flaws. It will simply raise the barrier for everyone, including the companies that use the program responsibly.

Why Paying the Fee Is Not the Only Option

Many companies cannot afford to pay $100,000 per hire, nor should they be forced to. But they still need specialized skills to compete. The answer is not doubling down on a flawed system.

Instead, the smarter play is to go directly to where the talent is. Remote work has made this more viable than ever. With the right infrastructure, companies can hire brilliant engineers in Mexico, Colombia, Spain, or Romania — no visas, no lotteries, no bloated fees.

And here is the philosophical shift:

At Terminal, we believe you do not need to bring people to opportunities, you can bring opportunities to people.

That is the power of remote work. It is not just a workaround for broken immigration policy, it is a better and more equitable way to connect the best opportunities with the best people worldwide.

Browse Terminal’s global engineering talent or visit our Remote Software Engineer Salaries Center to see how competitive global markets have become.

The Next Phase of Tech Hiring

Even before this new fee, the H-1B cap was a bottleneck. Demand vastly exceeded supply, and the lottery was increasingly gamed by intermediaries. Now, with this abrupt change, companies must face a new reality: dependency on H-1B visas is a fragile long term strategy.

The companies that thrive in the next decade will be the ones that stop chasing visas and start building global talent strategies. That means exploring nearshore markets, leveraging remote infrastructure, and rethinking what it means to have a global team.

I have worked with international talent for years. I have seen businesses transform when they tap into engineers who would never uproot their lives to move to Silicon Valley but who can deliver world class impact from where they are.

The new fee may feel like a shock, but it is also an opportunity. It is an inflection point to leave behind an H-1B visa program that has long been compromised and embrace a future where geography no longer defines access to opportunity.