US Tech Layoffs Renew Calls for $100,000 H-1B Visa Fee as Workers, Lawmakers Question Foreign Hiring Practices

Washington D.C.:
As layoffs continue to ripple across the US technology industry, a renewed political and public debate has emerged over the H-1B visa program, with calls to impose a $100,000 fee on each visa granted to foreign skilled workers.

The move, spearheaded by advocacy groups and now reportedly under discussion among lawmakers, aims to curb what critics describe as an overreliance on foreign labor that is displacing American tech professionals — particularly software engineers, support staff, and entry-level coders.

💼 Layoffs and Visa Policy Connection

The H-1B visa was established to allow US companies to hire foreign professionals for highly specialized roles when domestic talent is scarce. But new data and recent layoffs have raised questions about how the program is being used.

According to federal labor data, nearly two-thirds of all H-1B approvals in 2024 were for jobs in computer and IT services — fields where the median annual salary barely exceeds $100,000.

Kevin Lynn, head of the Institute for Sound Public Policy, says this imbalance is fueling frustration among job seekers and policymakers alike.

“Our voices are being heard now,” Lynn told the New York Times News Service, noting that lawmakers are finally engaging on the issue amid widespread layoffs.

📉 Changing Job Market, Growing Political Pressure

The recent downturn in tech hiring has provided momentum for groups calling for reform.

Right-wing activists, including Laura Loomer, have amplified the debate, arguing that American workers — particularly young graduates — are being squeezed out. Lynn cited anecdotal reports from congressional offices:

“Constituents are asking why their kids can’t get tech jobs — and why so many are being filled by foreign workers.”

Once considered a fringe argument, the demand for an H-1B fee hike now resonates more broadly with politicians facing pressure from unemployed constituents in tech-heavy states like California, Texas, and Washington.

🧑‍💻 Critics Question Employers’ Use of H-1B Workers

Economists and labor experts argue that the system has deviated from its intended purpose.

Kirk Doran, an economist at the University of Notre Dame, explains that many H-1B workers are now hired for routine technical work, not for the advanced innovation roles the visa program was designed to support.

Major tech companies — including Meta, Apple, and Amazon — have faced investigations and lawsuits over allegations of using the PERM (Permanent Labor Certification) process to secure foreign workers while limiting opportunities for US citizens.

🧾 Workers’ Experiences

Several displaced American professionals have shared first-hand accounts of being replaced or underpaid compared to incoming H-1B hires.

One UI designer reported that his entire department was dissolved in 2024 while the company applied for a dozen H-1B visas for similar roles. A machine learning engineer described multiple rounds of layoffs as foreign contractors were brought in to take over simpler tasks.

These stories, Lynn says, are now “driving the emotional and political urgency” behind the push for reform.

🇺🇸 The Proposed $100,000 Fee

Former President Donald Trump, who has revived his “America First” rhetoric, recently announced plans to impose a $100,000 H-1B visa fee for for-profit corporations.

The measure, if implemented, would aim to discourage mass visa applications and ensure that only high-value, specialized roles are filled through the program.

While economists acknowledge that the H-1B system benefits the US economy by bringing in global talent, the tech sector’s layoffs — combined with public resentment over outsourcing — have shifted the political mood sharply against what some perceive as abuse of the visa process.

🌍 The Broader Debate: Globalisation vs Local Employment

The controversy underscores a larger debate about globalisation and economic fairness in the US workforce.

As Kevin Lynn summed it up:

“Globalisation is the trunk of the tree — and offshoring, outsourcing, and H-1Bs are the branches.”

With layoffs showing no sign of slowing, policymakers now face the challenge of balancing innovation-driven immigration with protection for domestic workers — a debate that’s likely to shape tech and labor policy through 2025 and beyond.