Trump Thinks a $100,000 Visa Fee Would Make Companies Hire More Americans. It Could Do the Opposite.

“The fee will affect workers in fields far beyond tech. Health care providers, religious groups, and educators are among those suing the Trump administration over the fee, “saying it would harm hospitals, churches, schools and industries that rely on the visa,” reports the Associated Press. The fee could exacerbate teacher and physician shortages, especially in rural areas that struggle to attract American workers. “About a third of H-1B workers are nurses, teachers, physicians, scholars, priests and pastors, according to the lawsuit,” according to the Associated Press.

 Though the Trump administration argues that its visa fee will address the “large-scale replacement of American workers,” it might not lead to companies hiring American workers instead of foreign workers after all. “Firms respond to restrictions on H-1B immigration by increasing foreign affiliate employment,” found a 2020 National Bureau of Economic Research working paper. “For every visa rejection,” the average multinational corporation hires 0.4 employees overseas, while the most globalized firms “hire 0.9 employees abroad for every visa rejection.” Federal Reserve Bank of Richmond economist Nicolas Morales observed that “tighter immigration rules don’t just limit U.S. hiring, but they can also accelerate relocating jobs to other countries.”

Other countries are trying to attract foreign talent that might be deterred by U.S. visa policies, Roll Call reported in October. Germany’s ambassador to India and Bhutan compared the country’s immigration policy to a German car: “It’s reliable, it’s modern and it is predictable….We do not change our rules fundamentally overnight.” Canadian Prime Minister Mark Carney argued that “not as many people are going to get visas to the United States,” which represents “an opportunity for Canada.”

The H-1B program is imperfect. Many supporters of high-skilled immigration suggest fundamentally changing the visa or scrapping it altogether, arguing that it limits foreign workers’ mobility and long-term prospects and doesn’t prioritize the highest-skilled workers for the U.S. economy. But a $100,000 fee won’t fix those issues.”

https://reason.com/2025/12/07/what-would-a-100000-h-1b-fee-do

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