Trump’s $100,000 H-1B fee sparks business backlash

Trump’s $100,000 H-1B fee sparks business backlash

Industry groups warn Trump’s new $100,000 H-1B fee endangers skilled worker pipeline, risking unfilled critical jobs across key sectors.

Business Groups Push Back on Trump’s $100,000 H-1B Fee

President Donald Trump’s decision to slap a massive $100,000 fee on H-1B visa applications has sparked a rare wave of unity among U.S. businesses. From chipmakers and software giants to retailers and hospitals, companies across the country are warning the administration that such a steep price tag will choke off access to skilled workers, damage innovation, and ultimately hurt the American economy.

In a letter sent to the White House on Friday, a coalition of about a dozen industry groups — representing some of the country’s most powerful sectors — voiced their alarm. The organizations, which include chip industry body SEMI, the Business Software Alliance, the National Retail Federation, and the Information Technology Industry Council, told Trump that the new fee could cripple a vital pipeline of global talent.

“These changes threaten to leave critical jobs unfilled and undermine U.S. competitiveness,” the groups cautioned.

The Talent Pipeline at Risk

The H-1B program has long been a flashpoint in U.S. immigration policy. Critics claim it allows companies to rely too heavily on foreign workers, while supporters insist it is essential for filling jobs that Americans cannot. For decades, industries from tech to medicine have leaned on H-1B visas to bring in high-skilled workers — coders, engineers, and doctors — that help drive innovation and keep essential services running.

By raising the application fee to $100,000, companies say, the administration risks shutting the door on exactly the type of talent the country needs most. Major tech companies, including Intel, TSMC, Samsung, Applied Materials, and KLA Corp., all with leadership tied to SEMI, have built their global edge on access to world-class engineers and researchers.

“Cutting-edge sectors like artificial intelligence, semiconductor manufacturing, and biomedical research will suffer if access to skilled workers is blocked,” the groups wrote.

Praising Investment, But Warning on Policy

Interestingly, the letter did not come across as combative. Instead, the organizations carefully praised Trump’s broader efforts to encourage investment and strengthen U.S. industry, framing themselves as allies in the effort to keep America competitive.

employers already face recruiting, training, and retaining top talent,” they wrote.

Their message was clear: don’t throw away America’s leadership in technology and innovation by making it harder to hire the very people who fuel it.

Retailers Join the Fight

It isn’t just Silicon Valley and the chip industry raising red flags. Major retailers, including Walmart, Target, and Macy’s, are also part of the opposition. All three companies sit on the executive board of the National Retail Federation, which helped craft the letter.

Big-box retailers may not be the first names that come to mind when thinking about H-1B visas, but the reality is that they, too, rely heavily on tech workers. From designing sophisticated supply chain systems to powering e-commerce platforms, these companies compete with tech giants for the same pool of skilled workers.

According to reports, after the $100,000 fee was announced, several large corporations even urged H-1B employees not to leave the United States, fearing they might not be able to re-enter under the new rules.

Hospitals and Rural America

The opposition isn’t limited to the private sector. On Friday, the administration faced its first major court challenge over the H-1B changes. A nurse-staffing agency and several labor unions filed suit in federal court to block the new fee, arguing it would devastate hospitals already struggling to recruit doctors and nurses.

For rural communities in particular, the H-1B program is often the only lifeline to fill chronic shortages of healthcare workers. Doctors on H-1B visas play an outsized role in serving underserved areas. The administration has acknowledged this to some degree, saying that as of September 22, physicians could qualify for exemptions from the new fee. But health industry groups argue that carving out narrow exceptions is not enough.

Industry at a Crossroads

The coalition’s letter makes one thing very clear: businesses see this as more than just another policy change. They believe it cuts to the heart of whether the United States will remain a global leader in innovation.

“The new approach to H-1B visas, as it stands, will harm the Administration’s goals to ensure the U.S. remains a leader in AI, revitalizes manufacturing growth, and propels U.S.-developed energy,” the groups wrote.

The fear is that by making it dramatically more expensive to hire skilled international workers, companies will either move operations overseas or simply lose their competitive edge. If engineers, doctors, and researchers can’t come to America, they’ll go elsewhere — to Europe, Canada, or Asia — where governments are actively courting them.

A Rare Unified Voice

What makes this episode stand out is the rare unity among industries that often disagree on policy. Tech companies, retailers, hospitals, and trade associations don’t usually sign the same letter. But Trump’s $100,000 H-1B fee has managed to bring them together.

For now, the White House hasn’t publicly responded to the coalition’s concerns. But with lawsuits already filed and pressure mounting from some of the country’s biggest employers, the administration may be forced to revisit its approach.

What’s at stake isn’t just paperwork or fees. It’s the question of whether America remains a magnet for the world’s best and brightest — or whether those people will decide their futures lie somewhere else.