If you have plans to expand your business into the United States, a new policy announced by President Donald Trump’s administration could make you think twice about bringing your top talent with you. 

Companies operating out of the US face a major shift in how they hire from overseas after the US government introduced a US$100,000 one-time fee for new H-1B visas. The H-1B programme allows US companies to hire highly skilled foreign professionals in “specialty occupations” such as IT, healthcare, engineering and education. Previously, the cost of applying for an H-1B — paid by the company, not the individual applicant — ran between a few hundred dollars to US$5,000, depending on the size of the company.

US officials say the new six-figure fee is aimed at discouraging companies from using foreign labour to undercut American wages. “Either the person is very valuable to the company and America, or they are going to depart and the company is going to hire an American,” Commerce Secretary Howard Lutnick said when the new policy was announced on 19 September.

There are currently around 730,000 H-1B visa holders in the US, according to a recent report from the immigration advocacy group fwd.us.

Tech firms, which account for about two-thirds of roles under the H-1B scheme, have warned of disruption, and for many smaller companies the increased fee could make it impossible to attract essential workers. 

The Department of Homeland Security estimates that 5,200 small businesses that rely on H-1B workers could face “significant economic impact”, with industry groups saying companies may be forced to delay projects or outsource work to other countries.

“A $100K annual fee won’t bother Big Tech, but it kneecaps startups,” Y Combinator CEO Garry Tan posted on X.

But the US’ loss could be another country’s gain, if the new fees trigger a “brain drain” that sees high-level professionals move to other countries for work, taking with them the estimated US$86bn that H-1B visa holders and their families contribute annually to the US economy.

Several countries have already made or are in the process of making it easier for skilled workers to migrate.

Canada already attracts thousands of H-1B holders each year and recently lowered the cut-off score for its points-based Comprehensive Ranking System to invite more skilled workers for permanent residency, ready to absorb talent that might now bypass the US.

UK Prime Minister Keir Starmer is reportedly exploring the possibility of fast-tracking visa applications and cutting fees for skilled foreign workers, offering an easier pathway for education and science, tech, engineering and maths (Stem) specialists — which could be especially attractive to the Indian nationals who currently make up about 71% of US H-1B recipients. Less than a week after the new fee was announced, tech companies in the UK report that they are already fielding thousands of enquiries from foreign talent looking for an alternative to the US.

China — where more than 11% of current H-1B holders come from — will launch a new K Visa on 1 October, aimed at attracting Stem talent. The visa allows recipients to study and work in China without having a job offer in hand.

And Gulf States such as the United Arab Emirates, Saudi Arabia and Qatar are investing heavily in digital and artificial intelligence services and infrastructure, which could be a big draw for global tech and engineering talent that can no longer head to the US.