President Trump’s move to impose a new H-1B visa fee of $100,000 and set stricter salary thresholds for foreign workers has redrawn the map of global tech hiring. The policy, outlined in a September 19, 2025 executive order and in effect for new petitions filed on or after September 21, 2025, has a one-year window through September 21, 2026, unless extended. The change does not affect previously issued visas or petitions filed before the effective date. A narrow national-interest waiver exists on paper, but the standards for approval remain unclear.
At the heart of the shift is cost. A $100,000 H-1B visa fee — layered on top of existing legal and processing costs — prices many smaller U.S. employers out of the market. The new stricter salary thresholds, intended to push wages higher for foreign hires, further raise the financial bar. While some large companies can absorb the shock, early-stage firms in AI, biotech, and deep tech say the numbers simply don’t add up for roles they historically filled through global recruitment. The policy aims to boost domestic hiring; however, companies warn it could also push advanced research and product development outside the United States 🇺🇸.
International hiring response and market shifts
London-based founders are signaling they see an opening. Husayn Kassai, cofounder of Quench.ai, told the Financial Times the new rules could end what he called “second-league” hiring in Europe: “We were getting second league picks. These changes open a window to the top tier of talent.” Others echo that view, arguing that when U.S. pathways become too costly or uncertain, top engineers look elsewhere.
The reaction points to a deeper reality: for many sought-after coders and researchers, work location is now flexible, and policy friction can quickly push them toward friendlier destinations.
- Recruiters and relocation services report surges in interest.
- Founders abroad view this as an opportunity to attract higher-caliber hires.
- Engineers increasingly treat offers from outside the U.S. as first-choice options rather than backups.
Policy change context
The White House’s action tightens H-1B issuance on two fronts:
- $100,000 application fee: Applies to new H-1B petitions filed after September 21, 2025.
- Stricter salary thresholds: Raises the wage floors employers must meet when petitioning for foreign professionals.
Officials argue the combined measures safeguard U.S. workers and discourage underpayment. Employer groups counter that the price tag blocks access to specialized workers who are scarce domestically and central to innovation. VisaVerge.com reports that startups already reworking budgets may pivot to hiring abroad rather than paying the heightened costs for U.S.-based roles.
Countries capitalizing: Canada and the U.K.
Canada 🇨🇦 and the United Kingdom quickly moved to capitalize on the moment.
- Canada: Prime Minister Mark Carney praised the opportunity to draw engineers who might otherwise have picked California or New York.
- U.K.: Chancellor Rachel Reeves has floated visa reforms and lower fees to lure highly skilled workers.
These moves follow a “red carpet” approach used by governments abroad:
- Speed up processing
- Keep costs predictable
- Make long-term settlement paths clear
The implicit message: if the U.S. door narrows, other doors will open wider.
Early market signals
Real-world indicators show demand already shifting:
- Immigram, a U.K.-based relocation service for tech workers, reports its call center is overwhelmed after the H-1B announcement.
- Toronto recruiting startup Ribbon says roughly 40% of its team includes people who ran into U.S. visa problems.
- Anecdotes from founders and recruiters suggest more workers are “getting stuck” in Canada or the U.K., which benefits local ecosystems.
When one major hub raises barriers, another hub tends to benefit quickly.
Impact on U.S. startups and hiring math
For U.S. startups the financial impact can be severe.
- Example: A young AI lab hiring three senior machine-learning engineers could face $300,000 in H-1B visa fees alone, before salaries and benefits.
- Add stricter salary thresholds, and total costs rise sharply compared with a remote-first or Canada/U.K.-based model.
Consequences for startups:
- Offshore key roles or open new teams abroad
- Scale back ambitious research plans
- Face long-term impacts on where intellectual property is created and where teams cluster
Larger employers may pay the premium for rare skills tied to critical programs, while smaller firms are hit hardest.
International competition accelerates
Governments outside the U.S. are treating this policy window as a strategic opening to reshape the geography of innovation.
- Canada: Well-established pathways for skilled workers and favorable North American time zones.
- U.K.: Actively marketing London, Cambridge, and Manchester for AI, fintech, and life sciences.
Policy tweaks include:
- Faster permits
- Streamlined recognition of credentials
- Lower fees or friendlier visa terms
Industry groups in the U.S. warn of knock-on effects:
- Suppliers, investors, and support services follow talent
- Venture capital may encourage multi-country builds to hedge policy risk
- University partnerships and lab spinoffs might orient to more stable destinations
The worry is a slow drift: year by year, top teams could form elsewhere, and the next decade’s breakthroughs might carry non-U.S. roots.
National-interest waiver: possible but uncertain
The policy includes a possible national-interest waiver, but employers say the path is unclear.
- Likely areas for exceptions: healthcare and critical infrastructure
- Problem: No clear, public standards for approval yet
Until guidance is provided, most employers will budget as if no waiver exists, nudging hiring plans outward — to satellite offices, partner labs, or new teams overseas.
Important: Until waiver standards are clarified, companies should assume they cannot rely on predictable exemptions.
On-the-ground effects abroad
Abroad, the tone is opportunistic and practical:
- Founders in Europe and Canada discuss access to “top tier” engineers who historically defaulted to Silicon Valley.
- City leaders see chances to seed new clusters and attract anchor companies.
- Spillover effects include apartment leases, school enrollments, and local service jobs — signs that tech workers are planting roots.
Recruiters in Canada now pitch roles as first-choice offers, not backups. That psychological shift matters when top candidates compare offers.
Why candidates and families may choose outside the U.S.
For engineers and researchers, offers in Toronto or London may now include:
- Simpler immigration steps
- Comparable pay after currency adjustments
- Credible paths to permanent residence
- Reduced risk of visa setbacks for families
These points are persuasive for candidates prioritizing stability and long-term planning.
Where to find official H-1B information
Employers seeking background on H-1B rules can review the U.S. government overview at:
– U.S. Citizenship and Immigration Services (USCIS) H-1B Specialty Occupations
While the new H-1B visa fee and stricter salary thresholds stem from the President’s September 2025 action, the USCIS page remains the central reference for general eligibility and program mechanics.
Employer responses and likely near-term strategies
Many companies are already adjusting:
- Shift roles to Canada and the U.K.
- Accelerate distributed teams across time zones
- Pause roles requiring H-1B sponsorship pending policy changes before September 21, 2026
VisaVerge.com analysis shows job postings increasingly specify non-U.S. locations for core engineering roles and prefer candidates who already hold U.S. work authorization for U.S.-based roles.
How success of the policy will be judged
Outcomes will take time to assess. Possible measures of success or failure include:
- Supporters’ metric: U.S. wages for specialized roles rise without starving startups of talent.
- Critics’ metric: Critical projects move abroad and early-stage firms can’t compete, undercutting long-term tech leadership.
What is clear today: the immediate cost reality creates a hiring filter few startups can pass.
- The $100,000 H-1B visa fee plus stricter salary thresholds favors the deepest-pocketed employers.
- That filter triggers a chain reaction in where people work, where companies root, and where future innovations emerge.
This Article in a Nutshell
The September 19, 2025 executive order introduces a $100,000 H-1B application fee and stricter salary thresholds for petitions filed on or after September 21, 2025, lasting through September 21, 2026 unless extended. Intended to protect domestic workers and push wages higher, the policy raises hiring costs substantially, particularly for resource-constrained startups in AI, biotech and deep tech. Large firms may absorb the charges, but many startups plan to offshore roles or build teams in Canada and the U.K., where governments are offering faster processing, predictable costs and clearer settlement pathways. A national-interest waiver exists but lacks clear approval standards, prompting employers to assume it’s unavailable and adjust hiring plans accordingly. Early indicators include surging demand for relocation services and recruiters reporting that engineers now view non-U.S. offers as primary options. The long-term effect could be a reorientation of innovation hubs if top talent relocates and venture capital follows.
