Billionaire venture capitalist Mike Moritz, former head of Sequoia Capital, has unleashed a fiery critique of the Trump administration's newly imposed $100,000 H-1B visa fee, labeling it a 'brutish extortion scheme' in a recent Financial Times op-ed.
Comparing the White House to Tony Soprano's pork store, Moritz argues that the fee, introduced via a presidential proclamation on September 19, 2025, unfairly targets tech companies reliant on global talent.
The Context Behind the H-1B Visa Fee Hike
This drastic fee, applied to new H-1B petitions, marks a significant departure from previous costs, which were already a point of contention at around $5,000 plus legal expenses.
Historically, the H-1B visa program has been a cornerstone for U.S. tech firms, enabling them to hire skilled foreign workers, particularly from countries like India, to fill specialized roles.
Impact on Startups and Tech Giants Alike
Startups and smaller firms, already strapped for resources, may bear the brunt of this policy, potentially stifling innovation by limiting access to global talent.
Even tech giants, while better equipped financially, are expressing concerns over the precedent this sets for future immigration policies.
A History of Controversy Surrounding H-1B Visas
The H-1B program has long been criticized for alleged abuse by some IT consulting firms accused of undercutting American wages, a concern that fueled past reform efforts.
Proponents of the fee argue it prioritizes domestic hiring, but critics like Moritz warn it risks alienating the very international expertise that has driven Silicon Valley's success.
Looking Ahead: What This Means for the Future
Looking forward, this policy could reshape the U.S. tech landscape, potentially pushing companies to relocate operations to countries with more favorable visa regulations.
Legal challenges are already brewing, with immigration attorneys preparing suits against what they call a 'pay-to-play' barrier for foreign workers.
The broader implications may include a brain drain, as skilled professionals seek opportunities elsewhere, weakening America’s position as a tech innovation hub.
Alfred Lee
