President Donald Trump’s new $100,000 annual H-1B fee presents a multi-billion dollar question for America’s largest technology companies. For giants like Amazon, Microsoft, and Meta, the policy is not just an inconvenience but a significant financial liability that could force a major reassessment of their global staffing and operational strategies.
Consider the numbers: Amazon had over 10,000 H-1B visas approved in the first half of 2025 alone. A $100,000 annual fee on these workers would cost the company a staggering $1 billion per year. For Microsoft and Meta, each with over 5,000 approvals, the annual cost would be around $500 million. These are not trivial sums, even for corporations of their size, and they would directly impact their bottom line.
The administration, represented by Commerce Secretary Howard Lutnick, seems to be counting on this financial pressure. Lutnick stated that “all the big companies” were briefed, suggesting they are expected to absorb the cost for their most essential employees. The implicit message is that if the talent is truly indispensable, the price shouldn’t matter, and for everyone else, companies should “hire an American.”
However, corporations may not simply absorb the cost. They could respond by offshoring entire departments to countries where skilled labor is more accessible. A research division that relies heavily on foreign talent might be moved to Canada or India, resulting in a net loss of jobs and investment in the U.S., a direct contradiction of the policy’s stated goals.
Ultimately, while Big Tech can likely “afford” the fee in a literal sense, the strategic cost may be too high. The impending legal battles will be crucial. These companies will likely fund and lead the charge to block the proclamation in court, arguing that this punitive fee is an illegal overreach that harms their ability to compete and innovate globally.
