Silicon Valley Investor Warns Trump’s H-1B Fee Hike Will Backfire
The imposition of a $100,000 charge on new H-1B visa applications by US President Donald Trump has drawn harsh criticism from Silicon Valley billionaire Michael Moritz, who warns that the action will backfire and harm America’s technological advantage. Moritz, an early supporter of Google, PayPal, and various other tech giants, expressed his views in an opinion piece published in The Financial Times. He stated that the executive order signed by Trump reflects a fundamental misunderstanding of the factors that drive success in US technology.
On September 19, Trump signed an order imposing the new fee and proposed changes to the lottery system to prioritize higher-paid workers. The administration contended that the programme has been “deliberately exploited to replace, rather than supplement, American workers.” The announcement sparked concern throughout Silicon Valley. It has been reported that companies including Amazon, Google, and Microsoft advised their H-1B employees to return to the US prior to the September 21 deadline. Expressing his endorsement for skilled immigrants, Moritz stated that engineers hailing from Eastern Europe, Turkey, and India possess qualifications on par with those of their American peers. He contended that the US ought to assist tech firms in growing within the country instead of dispersing their operations overseas.
“Like other Trump schemes, this H-1B caper will backfire,” Moritz wrote. Advancements in technology allow for much of the work to be conducted remotely — in Istanbul, Warsaw, Prague, or Bengaluru — with the same ease as in San Francisco or Austin. He stated that large tech companies employ foreign nationals due to their specialized skills and to address shortages in sectors where US talent is limited. Moritz cautioned that the policy might drive innovation abroad and rob the US of a new wave of entrepreneurs. “If companies change their policies out of fear of Trump’s next move, foreign economies will get a boost,” he wrote.
Anupam Mittal encouraged Indians in the US to contemplate a return, while Sridhar Vembu stated, “Do not live in fear.” Take the decisive step. “You will do well.” The H-1B programme permits 85,000 skilled foreign workers to be employed in the US each year for a duration of up to six years. Nearly 71 per cent of those employed under the scheme are Indians, a fact that highlights its widespread use among tech and IT consulting companies.
