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VCs and founders warn that the $100K fee will make H-1B sponsorship prohibitively expensive for startups, not Big Tech, and drive talent outside the US

Longtime entrepreneurs and venture capitalists are sounding the alarm over President Trump's new H-1B fee that would impact tech companies and the workers they hire from abroad.

GeekWire Taylor Soper

Discussion

  • @christinapushaw Christina Pushaw on x
    1. The true competition with China is at the highest levels and the cutting edge of technology. That's why Zuckerberg is paying 8-figure salaries to bring AI engineers from China to the USA. The H1B program & rule change are irrelevant to this; H1B in tech is mostly lower & mid
  • @atalovesyou Atal Agarwal on x
    One H-1B worker who can't return = → Startup can't launch = → 50 American jobs not created = → Tax revenue lost = → Investors move to other countries = → Next Google built in Toronto Small policy change. Massive downstream effects.
  • @andrewgutmann Andrew Gutmann on x
    @ChristinaPushaw There are 3 credible and reasonable arguments against this policy: 1. It will make U.S. tech companies less competitive vis a vis foreign (especially Chinese) tech companies 2. It will lead to more outsourcing and even fewer high tech jobs for Americans 3. It fav…
  • @natpmanning Nathaniel Manning on x
    I've spent my career building startups that require unique talents. Often on a team or 10-20 10-20% of the team is on h1-bs. I've always felt it my duty as an American who has one side that came over pre-1776, to have the company sponsor and pay to bring the best and brightest to
  • @kevinh_phd Kevin Hall on x
    I was sponsored by a biotech startup on a H-1B visa in 1999. What's the plan to offset the impending collapse of highly skilled legal immigrants? Robust investment in American higher education? Nah, AI will probably obviate the need for these foreigners, right?
  • @speaksamuel Sam Peak on x
    It's not just about whether firms can afford to pay this new H-1B fee (though you should care a lot about this question if you're worried about startup growth). Even for the many firms you can afford to pay this, they will respond by offshoring more of their operations abroad, [i…
  • @sethbannon Seth Bannon on x
    AMERICAN CITIZENS who relied on H1-Bs to work here: Eric Yuan, Zoom founder Eren Bali, Udemy cofounder Sundar Pichai, Alphabet CEO Sanjay Mehrotra, Micron CEO Satya Nadella, Microsoft CEO Gustaf Alströmmer, YC Partner François Locoh-Donou, F5 CEO Andrew Ng, Coursera cofounder
  • @juicesharp Sergii Guslystyi on x
    I have almost the same view on the issue but a remark. The early teams (and other mid-size businesses) had almost no a chance to bring anybody for the last 5-7 years because of bodyshops (registered tones of applicants as they don't care who pass who does not) because of lottery
  • @lettieridc John Lettieri on x
    This is a crucial, overlooked fact about the H1B rule: it's yet another way the policy landscape will be biased in favor of entrenched incumbents. Which is terrible for American innovation. Lutnick even said as much in the Oval Office: “All of the *big companies* are on board.”
  • @honorabledredd @honorabledredd on x
    I would think this will also bottleneck big tech in that it will force them to seek a smaller number of talent, and focus more on quality over quantity. It would also incentivize them to build stronger teams abroad. Like Apple built China's tech sector, that could happen
  • @garrytan Garry Tan on x
    If you want America. startups to win this is not a secondary issue. It's a meaningful effect.
  • @lilianbuilds Lilian on x
    While in London I spent time at some of the best-run startups and I always asked about the advantages of building outside the US: Being outside the US means top startups get all the best people (because there aren't many alternatives). The $100k H-1B fee will only amplify this,
  • @harjtaggar Harj Taggar on x
    Startups should feel like an external grind where you're always fighting to get customers, not an internal grind where you're always fighting with your co-founders.
  • @atalovesyou Atal Agarwal on x
    VC PERSPECTIVE on H1B: Startups typically raise $2-5M seed rounds. Imagine telling investors: “We need $500K just for H-1B fees for our 5-person engineering team.” VCs will ask: “Why not just build the company in Toronto?” Brain drain via cap table economics.
  • @garrytan Garry Tan on x
    A $100K H1B annual fee won't bother big tech but it kneecaps startups and bodyshops the same, and that's a mistake. Early teams can't swallow that tax. Bodyshops who abuse H1B should be stopped. There are ways to do that without entrenching big tech and throttling startups.
  • @johnsmillie42 John Smillie on bluesky
    www.cnn.com/2025/09/19/p...  The all out war on Academia, and quest to further embed tools of corrupt favoritism, continue
  • @skimlines @skimlines on bluesky
    isn't twitter like a skeleton crew of h1b workers since it's latest sale www.cnn.com/2025/09/19/p...
  • @scholten.house.gov Rep. Hillary Scholten on bluesky
    Make no mistake: President Trump's latest proclamation on H-1B visas is an attack on our economy, and a further assault on health care.  —  apnews.com/article/h1b-...
  • @omicron416 Peter Jansen on bluesky
    Of course they warn that, they want to operate in the US but pay foreign wages and the fee interferes with that.  —  Personally?  I don't buy it.  [embedded post]
  • @barbaricus @barbaricus on bluesky
    Just pay the man (they enthusiastically voted for and donated to).
  • r/jobs r on reddit
    Trump administration to add $100,000 fee for H-1B visas
  • r/Economics r on reddit
    Trump signs proclamation imposing $100K annual fee for H-1B visa applications
  • r/politics r on reddit
    Trump to impose $100K fee on H-1B visas in new immigration action
  • r/news r on reddit
    Trump signs proclamation imposing $100K annual fee for H-1B visa applications
  • r/redscarepod r on reddit
    Trump to implement a 100k fee for h1-b visas