Canada Sees Opportunity as Trump’s $100K Visa Fee Redirects Talent

(CANADA) Canada is moving fast to attract global tech talent after the Trump administration announced a new H-1B fee of $100,000 for first-time applicants, a sharp cost increase set to start with new filings in 2026. Officials and industry leaders in 🇨🇦 say the change could shift engineers and computer scientists away from the 🇺🇸, especially at startups and smaller firms that can’t absorb such a high price for recruiting.

The fee applies only to new H-1B cases, not renewals, and the White House says the goal is to favor higher-paid roles and reduce lower-wage hiring. Tech executives warn the plan will drive workers and investment elsewhere.

U.S. policy shift and industry reaction

According to public statements, the Trump administration framed the H-1B fee as a way to protect U.S. jobs and target higher skills. The policy has already sparked worry across American tech and engineering employers that depend on international hires.

Industry voices have been vocal. Y Combinator’s Garry Tan called the plan a “massive gift to every overseas tech hub,” saying it creates a “toll booth” that hurts smaller U.S. firms. Canada’s major tech hubs—Toronto and Vancouver—could see faster hiring as multinationals like Amazon, Microsoft, and Alphabet grow teams north of the border.

Salaries in Canada are typically lower than in the U.S., which reduces costs for companies while keeping roles attractive for workers.

The administration has signaled a narrow healthcare exception: doctors may be exempt from the fee to avoid harm to the U.S. medical system. That is an early sign that strict rules can backfire in sectors facing shortages.

For official basics on what the H-1B program covers, see the U.S. Citizenship and Immigration Services guide on H-1B specialty occupations:
USCIS H-1B overview

New H-1B petitions are filed by employers using Form I-129:
Form I-129.

The announced fee would attach to new filings, not to already approved workers or standard extensions.

Canada’s response: balancing attraction and limits

Canada is eager to capture talent that might rethink a move to the 🇺🇸, but it is also tightening its own intake.

Key numeric targets and changes:
– 395,000 permanent resident admissions in 2025 (planned reduction).
– Further reductions planned through 2027.
– Temporary migration (foreign workers and international students) is being capped.
– Target to bring temporary residents down to 5% of the population by the end of 2026.
– By 2027, the economic class is expected to reach about 62% of permanent resident admissions.

These limits could slow the scale of any surge caused by the U.S. rule.

At the same time, Canada is refining programs to support workers already in the country and those tied to growth sectors. The 2025–2026 strategy includes:

• Making the Economic Mobility Pathways Pilot permanent.
• Launching new work permit streams.
• Supporting smoother transitions from temporary status to permanent residence.

VisaVerge.com reports that this mix—tighter caps but targeted programs—will likely filter who benefits from the U.S. change. Workers with strong resumes and in-demand skills may find doors still open in Canada, even as overall numbers come down.

Policy uncertainty remains on both sides of the border. In the U.S., business groups argue the H-1B fee will undercut growth and push investment abroad. In Canada, officials want to attract global tech talent while responding to public worries about housing and services. That tension could keep the scale of redirection in check.

What employers and workers should watch

• Costs and timelines
  • In the 🇺🇸, a $100,000 price tag on a new H-1B filing in 2026 will change the math for startups and midsize firms.
  • Larger companies may pay the fee but could also grow more in 🇨🇦 where salaries are lower and permits may be quicker under existing pathways.
• Corporate strategy
  • Multinationals with footprints in Toronto and Vancouver can increase hiring there to avoid the fee.
  • Firms may move roles planned for U.S. cities to Canada while keeping cross-border product and leadership teams linked.
• Canada’s caps
  • Lower targets and a stricter temporary resident share mean not every worker displaced by the U.S. policy will find a spot in Canada.
  • Those already in Canada may have an advantage due to prioritization of transitions to permanent status.

• Sector exceptions
  • The possible H-1B carveout for doctors shows how sector needs can shape policy.
  • Tech does not appear to have such an exception, increasing pressure on companies and workers to seek alternatives.
• Application mechanics
  • In the U.S., employers sponsor H-1B candidates with Form I-129 (Form I-129).
  • The administration’s fee would apply to new cases tied to that petition; renewals and existing holders are not covered.

Practical implications — people and employers

For individuals and small firms the change is concrete and personal:

• A startup founder in San Francisco who once hired an H-1B software engineer might now find $100,000 per new hire impossible. That could push them to:
  1. Post roles in Toronto.
  2. Open a small office in Vancouver.
  3. Contract teams in Canada while keeping leadership in the U.S.
• A mid-career developer in India or Brazil may prefer an offer in 🇨🇦 if the American route looks slow, expensive, or uncertain.

• For families, moving to a Canadian city with a clearer path from work permit → permanent residence → citizenship can feel more stable than waiting out policy fights in Washington.

For Canada, the opportunity is real but limited:
– Lower national targets and a cap on temporary residents serve domestic goals and reduce the number of open seats for newcomers.
– Policymakers are balancing growth with pressure on housing, transit, and health care.
– Employers warn that a tighter Canadian intake could still create bottlenecks if too many roles shift north at once.

Business groups across North America are urging both governments to keep doors open for high-skill workers, arguing that future jobs, patents, and startups follow people. If the U.S. imposes a large H-1B fee and Canada closes intake too far, talent could flow to Europe or Asia instead.

For now, the clearest near-term shift appears to be south-to-north, especially in software, AI, and cloud engineering. Whether that continues depends on how strictly both countries enforce their new plans and how fast companies change their hiring playbooks.