TechNet, the industry association representing Apple, Amazon, Alphabet, Meta, as well as leading AI firms including OpenAI and Anthropic, submitted an official opposition letter by the public comment deadline, urging the government to withdraw the proposed rule.

Summary

The public comment period for the proposed steep H‑1B fee rule has just concluded. This new version was rolled out by the U.S. government through formal legislative procedures after the prior policy was ruled unlawful by courts. The tech industry has issued a collective warning that the sky-high filing fee will erode America’s talent competitiveness in the global AI race. Startups will bear the most immediate brunt, and the already fiercely competitive tech job market for international students in the U.S. may undergo another round of reshuffling.

On September 24 local time, the public comment window for the Department of Homeland Security (DHS) proposal to impose an additional $103,265 surcharge on H‑1B visas officially closed.

This proposed charge would mark the highest immigration-related fee ever put forward by U.S. Citizenship and Immigration Services (USCIS). It has also brought the long-running conflict between the White House and Silicon Valley over high-skilled immigration policies to a new bargaining stage.

Many are familiar with this eye-watering fee. Back in 2025, the Trump administration attempted to introduce a $100,000-level H‑1B fee via presidential proclamation. Once the policy was announced, it sent shockwaves across the tech sector. Many companies rushed to adjust travel arrangements for their foreign staff, fearing overseas technical talent would struggle to return to U.S. roles.

That executive order was ultimately struck down by a federal judge as an overreach of authority and an unauthorized de facto tax without congressional approval, forcing the plan to be scrapped.

Now DHS has changed its implementation approach and launched formal rulemaking under U.S. administrative law.

According to the proposal’s explanatory statement, the fee is intended to offset administrative costs of the immigration system and applies exclusively to new H‑1B petitions subject to the annual cap. Petitions filed by universities and nonprofit research institutions are exempt from the fee.

Industry observers widely believe the government is relying on this full public consultation rulemaking process to avoid the legal flaws that sank the previous iteration.

Even after the public comment phase wraps up, if the rule is finalized and takes effect, lawsuits brought by businesses and industry associations remain highly likely. The policy trajectory carries substantial uncertainty.

Rare Unified Stance Across the Tech Sector: Major Players Publicly Oppose the Rule

TechNet, the industry association representing Apple, Amazon, Alphabet, Meta, as well as leading AI firms OpenAI and Anthropic, submitted an official opposition letter by the comment deadline, directly urging the government to withdraw the proposed rule.

Notably, large U.S. tech companies have often aligned with the Trump administration on issues including taxation and industry regulation. Yet on high-skilled immigration, the industry has formed nearly a unified front of opposition.

The core policy objective is to push U.S. domestic firms to prioritize hiring American workers and safeguard local employment.

Silicon Valley enterprises, however, hold a clear core argument: many cutting-edge technical roles carry extremely high barriers to entry, and the U.S. domestic labor market cannot supply enough qualified specialists. If employers must shoulder an extra visa cost exceeding $100,000 for every high-skilled foreign hire, America’s tech firms will suffer a direct blow to their global competitive standing.

TechNet warned in its official filing that the proposal would cut off a critical channel for U.S. companies to recruit top global talent. In the long run, it would undermine U.S. innovation capacity and economic dynamism, and may even cost the U.S. its talent edge in the worldwide artificial intelligence contest.

Among all affected groups, startups with limited cash reserves face the most acute risks.

Many founding teams in AI, semiconductor and software sectors draw core R&D talent from international students and global engineers.

Startups operate on tight cash flow and possess far weaker risk buffers than big tech giants. The new six-figure per-head visa cost will directly constrain their ability to recruit foreign talent. Many small innovative teams will be forced to pass up outstanding overseas candidates, scale back R&D teams and slow the pace of technological iteration.

The global race for AI talent is already well underway.

Canada, Singapore, the United Kingdom and other nations have streamlined visa and immigration pathways for high-skilled workers in recent years, simplifying residence and employment procedures for foreign engineers to actively attract global STEM talent.

If the U.S. sharply raises the cost of H‑1B access, top researchers and engineers will increasingly treat other countries as their preferred career destinations, and America’s decades-long draw for global talent will keep fading.

Two Sides of the H‑1B Debate: Constant Tug-of-War Between Domestic Job Protection and Global Talent Demand

Launched in 1990, the H‑1B visa is the primary work visa pathway for foreign professional specialists to take up specialty occupations in the United States. H‑1B holders may later apply for green cards and long-term U.S. residency. For decades, it has served as a cornerstone of Silicon Valley’s innovation boom.

Still, the visa program has long proved divisive within the U.S.

Advocates of tighter restrictions argue that some companies abuse the H‑1B program to replace American workers with foreign staff and suppress wages, harming U.S. jobseekers.

Tech companies counter that most H‑1B roles sit in highly technical fields such as algorithm development, chip design and large model training. These positions pay market-rate industry salaries and are not vehicles for hiring cheap labor. Many advanced niche fields suffer from severe shortages of qualified domestic talent.

In practice, major tech employers including Amazon, Google and Meta sponsor thousands of foreign engineers through H‑1B each year to support global R&D projects.

Should the new rule take effect, the massive visa cost will largely fall on employers. When evaluating candidates, foreign applicants will carry substantially higher hiring costs than domestic applicants, making employers far more conservative in recruitment.

Practical Implications for Overseas Jobseekers and Chinese International Students

One critical caveat must be clarified: the close of the public comment period does not mean the policy will immediately go into force.

DHS will collect and review all public feedback received before deciding whether to revise provisions, shelve the proposal, or issue a final version.

Even after finalization, opponents may still legally challenge the rule. The entire process will remain mired in protracted negotiations and will not be enforced anytime soon.

Nevertheless, the policy signal sent by this proposal merits close attention from international students planning to seek jobs in the U.S. Its potential impacts fall into three key areas:

First, as employer sponsorship costs for H‑1B surge, hiring managers will exercise greater caution when extending offers requiring H‑1B lottery participation.

All else equal, companies will prioritize candidates who do not require visa sponsorship, raising the bar for international students competing for tech roles.

Second, startup opportunities for international students will shrink markedly.

Unlike cash-rich large corporations, early-stage ventures can barely absorb the added visa fees. Yet startups are a vital source of first full-time U.S. employment for many graduating international students, meaning the overall talent pool of openings will contract.

Third, diversified career planning becomes essential.

More U.S.-based students are no longer treating America as their sole destination. They are proactively researching high-skilled immigration routes in Canada, remote overseas roles, and overseas divisions of Chinese global firms, building multi-pronged job search strategies to mitigate risks from shifting visa policies in a single country.

Many international students are rethinking their job-hunting mindset.

Previously, numerous students focused exclusively on landing roles at top U.S. tech firms, taking H‑1B eligibility for granted as a route to stay and work.

Continuous immigration policy turbulence reminds jobseekers that overseas employment depends on more than just technical skill; national talent policies constantly reshape job availability and hiring preferences.

Closing Thoughts

Beneath the proposed sky-high H‑1B fee lies a fierce clash between demands to protect domestic U.S. employment and the global talent needs of the tech industry.

This small work visa is far more than an identity document for foreign nationals; it has become a pivotal lever in great-power tech competition.

For the U.S. government, immigration policy must balance the demands of domestic voters and industrial priorities, and competing interests can rarely be fully satisfied at once. For Silicon Valley, the free flow of global talent underpins innovative vitality. Raising barriers to talent entry may ultimately come at the cost of industrial competitiveness.

Two key milestones bear continued monitoring:

1. DHS’s revisions and next steps for the fee proposal after compiling public comments;

2. Whether industry associations and companies file fresh lawsuits to delay or overturn the rule if it is finalized.

For international students aiming to enter global tech careers, betting solely on U.S.-based roles carries risks. Broaden your job search horizons, explore overseas teams of Chinese global enterprises and tech openings in Canada and other markets. While honing technical skills, prepare multiple career pathways to seize the initiative amid a volatile international job market.

If you know an international student hoping to capitalize on peak recruiting windows yet struggling to map out a clear strategy — for instance, refining resumes, building project portfolios, or identifying suitable tracks — feel free to reach out. MentorX’s team of specialized advisors can help clarify priorities, craft customized plans, and support students in securing their ideal U.S. job offers.