Small Businesses Fear H-1B Visa Changes Could Stifle Innovation

Mon Nov 10 2025 23:39:24 GMT+0200 (Eastern European Standard Time)

Recent executive orders imposing a $100,000 fee for H-1B visa applications are causing concern among small businesses and startups, highlighting the potential adverse effects on the US economy and innovation landscape.

President Trump’s recent initiative to enforce a substantial fee for H-1B visa applications is raising alarms for small businesses across sectors, especially startups. Leaders in various fields express that such financial burdens could stifle innovation and growth, ultimately leading to a negative impact on the labor market and economic expansion. Some companies may even consider offshoring talent to avoid the costs associated with hiring foreign skilled workers.

When US President Donald Trump signed an executive order to add a $100,000 fee for H-1B visa applications, concerns grew among small firms and startups that rely on foreign talent. Abhishek Singh, a software engineering manager in Seattle, feared his startup couldn't absorb such costs, indicating that many firms may face similar challenges. While the White House clarified the fee would initially apply only to future applicants, the potential implications loom large for businesses, especially those focused on innovation.

The H-1B visa program is crucial not only for major technology giants like Amazon and Microsoft, but also for smaller enterprises and startups struggling to meet workforce demands. Industry experts worry that the added fee could prove crippling, pushing companies to redirect their hiring efforts abroad rather than investing in domestic talent.

Many sectors are affected, with leaders like Karen Brady, CEO of a Seattle behavioral health nonprofit, indicating they simply cannot afford the $100,000 fee. For organizations that have relied on H-1B workers to meet workforce shortages, especially in healthcare and education, the implications could stall employee hiring and negatively impact service providers in desperate need of skilled workers.

Economists have adjusted their growth forecasts, citing the administration's anti-immigration policies as factors in expected declines in workforce size and productivity. Critics of the executive order, including scholars and business leaders, argue the move may inadvertently push small businesses toward offshoring to mitigate the financial strain of the new visa fees.

As uncertainty looms, many affected are considering relocation for employment opportunities outside of the US, demonstrating the far-reaching consequences of the Trump administration's immigration policy changes.