New $100K H-1B Visa Fees Threaten 20 Tech Startups

The recent signing of a controversial executive order by President Donald Trump has rattled Connecticut’s business and tech communities. By raising the H-1B visa application fee to an unprecedented $100,000, this policy change could dramatically reshape how tech startups and established firms in cities like Hartford, New Haven, Norwalk, and Stamford recruit foreign talent.

The administration frames this move as a way to curb the displacement of U.S. workers. The order also introduces a skills-and-wages-based allocation model for visas, moving away from the lottery system that employers have relied on for years.

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Massive Fee Hike Leaves Startups in Turmoil

For tech companies in Connecticut’s innovation hubs like Bridgeport, Danbury, Waterbury, and Middletown, the steep increase in visa costs is a game changer. Leaders are now rethinking hiring strategies from the ground up.

Many startups count on skilled foreign engineers, data scientists, and developers to hit their growth targets. With a $100,000 application fee per candidate, founders are already calculating how to reallocate resources and whether to invest in training existing local staff instead.

Exemptions Offer Little Relief

Certain occupations—like physicians—may escape the fee hike, but most tech firms will feel the full impact. The rapid changes have caught many by surprise, including venture-backed startups that had planned for years of growth fueled by international hires.

Immigration attorneys in New Haven say they’re seeing a flood of calls from worried business owners looking for guidance on compliance and possible legal workarounds. There’s a lot of confusion and, honestly, some panic.

New Allocation: Skills and Wages Over Lottery

The executive order also brings a major shift in how visas are awarded. Instead of a randomized draw, the administration wants to prioritize applicants based on skill level and salary offers.

This could help highly experienced professionals with six-figure salaries. But it might make things much harder for entry-level foreign workers and smaller Connecticut startups.

Industry Leaders React

OpenAI CEO Sam Altman expressed cautious optimism about aligning immigration incentives with high-value talent. Connecticut tech founders, though, remain divided.

Some think rewarding top-tier skills could raise the quality bar for hires. Others worry it’ll squeeze out promising candidates who lack long résumés but bring fresh ideas to innovation-led teams in places like Stamford and Hartford.

Global Talent Pipeline Rethink

With the U.S. becoming less accessible to affordable foreign talent, venture capitalists now advise startups to look at other global hubs. Canada, the U.K., and parts of Europe seem more attractive, offering friendlier immigration policies and a deep pool of skilled workers.

Founders in Norwalk and Bridgeport are already exploring satellite offices abroad. They want to keep access to the talent they need to stay competitive.

Data Insights Show Impact

Business Insider recently examined Department of Labor and U.S. Citizenship and Immigration Services data for 2025 H-1B approvals. The numbers are telling:

Beijing-based firm (1,360 approvals)
Databricks (248 approvals)
Stripe (151 approvals)
Cohesity, Gusto, Plaid, Deel, Magic Leap, Anthropic (20–76 approvals each)

These companies—many with satellite teams or customer bases in Connecticut—employ thousands and have raised billions in venture funding. Their reliance on international talent really highlights how disruptive the fee hike could be for the wider U.S. tech ecosystem.

Compliance and Uncertainty Ahead

Some major companies have refused public comment, maybe to avoid spooking investors while they figure out next steps. Magic Leap confirmed it’s keeping a close eye on the changes and plans to stay compliant with immigration laws.

In Connecticut’s fast-evolving innovation scene, the coming months will show whether this fee increase slows the state’s momentum as a tech hub—or sparks a push to grow more homegrown talent. It’s hard to say which way things will go.

The Road Forward for Connecticut Businesses

Right now, tech leaders from Waterbury to New Haven are bracing for a hiring slowdown. Some are hoping that by adapting, maybe through automation or reskilling local workers, they can offset the steep costs.

But for startups with tight budgets, the reality feels pretty stark. Global competition for talent just got a lot more expensive, and the choices these companies make now could shape Connecticut’s innovation scene for years.

Here is the source article for this story: 20 startups that could be hit hardest by the new $100,000 H-1B visa fees

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