Elon Musk defended H-1B visa fee hike system

Elon Musk defended H-1B visa fee hike system

H-1B Visa Fee Hike: Elon Musk’s Past Defense of the System Resurfaces

The recent announcement of a steep increase in the H-1B visa fee has sparked global debate, particularly in India and the U.S. tech sector. On September 19, 2025, the U.S. administration unveiled a policy that raises the cost of a new H-1B visa application to an unprecedented \$100,000. This marks a dramatic jump from the previous system, where total costs for filing and processing were only a fraction of that amount.

Why the Fee Was Raised

The White House has argued that the hike is meant to curb misuse of the H-1B program. Officials have long criticized cases where companies allegedly replaced American workers with foreign hires at lower wages. By drastically raising the cost, the government says it hopes to ensure that the visas are reserved for only the most highly skilled, well-paid roles. Supporters of the change also claim it will push firms to prioritize hiring locally and reduce reliance on overseas workers.

Clarifications and Exemptions

Soon after the announcement, confusion spread among visa holders and applicants. The government later clarified that the \$100,000 fee applies only to new H-1B petitions. Workers already in the United States under the program, as well as those seeking renewals or extensions, will not be affected. The fee will also not apply retroactively, but only during the next lottery cycle. This clarification eased some of the panic in the tech sector, though concerns remain high.

Global Reactions

The strongest backlash has come from India, whose citizens make up a majority of H-1B visa holders. Indian officials and industry groups warned that the hike could disrupt families, burden businesses, and affect the flow of skilled workers. NASSCOM, India’s top IT industry body, said that while the exemption for existing holders brought some relief, the new cost is still prohibitively high for new applicants. Stock prices of several Indian IT companies fell sharply after the policy was announced, reflecting fears of reduced overseas deployment opportunities.

Elon Musk’s Old Defense

In the midst of the controversy, an old social media post by Tesla and SpaceX CEO Elon Musk has resurfaced. In the post, Musk passionately defended the H-1B program. He pointed out that many of the engineers and innovators who helped build major American companies came to the country through H-1B visas. Musk himself acknowledged that the system was crucial in bringing talent that enabled breakthroughs at firms like Tesla and SpaceX.

He also criticized opponents of the program, expressing that restricting H-1B visas would damage America’s competitive edge in technology and innovation. In his blunt style, Musk reportedly declared that he would “go to war” to defend the program, underscoring how vital he believes it is to the future of U.S. innovation.

Looking Ahead

The new fee structure is likely to reshape the future of H-1B usage. For companies, the massive financial burden may deter them from sponsoring foreign workers, particularly early-career hires. For workers abroad, the pathway to U.S. opportunities may now seem far more distant. While the government maintains the hike protects American jobs, critics argue it could choke off a vital pipeline of global talent. As the debate continues, Musk’s words serve as a reminder that some of America’s greatest technological successes have been built on the foundation of immigrant contributions.