Anti-Growth Policymaking and H-1B Visas
Is it really an anti-growth mindset to encourage companies to hire American talent over foreign talent?
By Katelyn Livorse
The Trump Administration introduced a $100,000 fee to obtain an H-1B visa on Friday, September 19 to encourage companies to hire American talent rather than look overseas. The Executive Order, and a proposal released September 23 by the Trump Administration to rework the visa selection process. were designed to “protect Americans from unfair wage competition from foreign workers.”
The move prompted a massive scramble by immigration lawyers and visa holders as fears of non-return rose. Some decried the action as indicative of an anti-growth mindset and worried over how it jeopardizes the economy. One question remains – Is it really an anti-growth mindset to encourage companies to hire American talent over foreign talent? (READ MORE: Is the AI Boom Headed for a Bust?)
Understanding the Policies
It’s important to note that individual workers do not pay the new $100,000 fee. Rather, the multi-million- or billion-dollar companies hiring them pay it. In addition, this new policy only applies to new visa holders, not existing ones, and the increased fee would only be a one-time payment. White House Press Secretary Karoline Leavitt issued a clarification on this matter after many raised concerns over the status of current visa holders. (READ MORE: The Trump Administration and Gen Z Social Media)
H-1B visas have always had a yearly regular cap. There are 730,000 plus visa holders in the U.S. today, with over half a million dependents. Indians make up the majority of visa holders, followed by China. Amazon.com ranks as the #1 company user of the visas, followed by Tata Consultancy Services. For the 2026 Fiscal Year, the regular cap was 65,000 and an advanced degree exemption cap of 20,000. By July of 2025, both caps were reached.
The fee went into effect on September 21, 2025, two days after the Executive Order, and will only affect those who apply after that date. Applicants will also only be subject to the fee for one year (until September 2026) unless it is extended. Exceptions on an individual basis are possible if it would be in the “national interest.” The latest proclamation also includes changes in the treatment of H-1B visa workers. These include raising minimum salaries for H-1B workers and prioritizing higher-paid and highly skilled foreign workers in the lottery process.
Reasoning
The Trump Administration modified visa requirements to encourage companies to produce, invest, and hire in America. The White House provided reasoning for this which included, but not limited to,
“The H-1B nonimmigrant visa program was created to bring temporary workers into the United States to perform additive, high-skilled functions, but it has been deliberately exploited to replace, rather than supplement, American workers with lower-paid, lower-skilled labor.”
The White House also cited national security concerns in addition to concerns over harm to American graduates and skilled workers seeking jobs. (READ MORE: SCOTUS UPDATE: The Supreme Court Protected Families in Paxton v. Free Speech Coalition)
Affecting Growth
On one hand, the new fee will not affect current H-1B visa holders, nor will it change their visa status, thereby preserving current workers and contributors to the economy. Visa holders will also benefit from a higher minimum salary, prompting them to spend more, which will also boost the economy. The new policy also benefits American workers and recent graduates who, theoretically, will be tapped first for jobs. The Trump Administration would also argue that it boosts national security and would curb exploitation of the visa program.
On the flip side, there is a chance companies will be less likely to hire skilled workers from other countries because of the visa fees. As such, there is a possibility some companies may be left wanting for workers with specific skills.
Some may argue, however, that the move is relatively neutral and will have little to no impact on the economy. As illustrated earlier, H-1B visa holders make up a small portion of the workforce. Out of 163 million plus workers, visa holders make up less than .5% of the total workforce. While the Trump Administration argues the new visa policy will encourage companies to prioritize American over foreign talent, the true numbers of workers affected will likely be quite small.
Anti-Growth?
At this time, it’s hard to come to a conclusion on whether or not the executive order will affect the number of H-1B visa applications or the hiring of H-1B workers. However, the Trump Administration’s new policies certainly are not anti-growth. They aim to improve conditions and opportunities for the American worker, though any effect it will have will likely be quite minimal.
The new policies on H-1B visas, which provide excellent opportunities for skilled immigrants, improve many aspects of work for visa holders, including raised salary so companies cannot take advantage of them. The new fee also forces companies to consider American workers first, instead of pushing them aside for the “cheaper” option. While we won’t fully understand the real effects of the new policies for some time, we certainly cannot call them “anti-growth.”
About the Author
Katelyn Livorse is a marketing fellow at the Institute for Faith and Freedom and the editor-in-chief of Checkpoint News. A senior political science and French major, Katelyn is also a member of the AEI Executive Council at Grove City College.
In the summer of 2025, Katelyn interned at the U.S. House of Representatives in Rep. Mike Kelly’s office (PA-16). There, she had the opportunity to learn about constituent relations, attend briefings, and foster American-Irish relationships.
Katelyn has also previously worked as a translator for the Jews of the Somme Project. There, she translated French documents written during the Nazi occupation of France detailing the persecution of the Jewish population. Upon graduation, she hopes to pursue a career in international relations.
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Disclaimer: The views and opinions expressed are those of the writer alone and do not necessarily reflect the official policy or position of Grove City College, the Institute for Faith and Freedom, or their affiliates.
Cover Image: Photo by Waldemar Brandt on Unsplash (Cropped)
Image 1: Kelob2678, taken from Wikimedia Commons (License) (Cropped)