Trump's big change to the H-1B visa is a $100,000 hit to entrepreneurs, startups | Fortune
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Trump's big change to the H-1B visa is a $100,000 hit to entrepreneurs, startups | Fortune
"These companies already pay engineers $200,000 or $300,000 a year. Adding another $100,000 to bring on a skilled worker doesn't move the needle for them. But if you're running a small technology company in a city like Raleigh, Austin, Atlanta, or Denver, it's a completely different story. The average salary for a software engineer in these places is closer to $130,000 to $150,000."
"Here we go again. Another policy that lands hardest on the people least able to absorb it: entrepreneurs and small businesses. Last week, the President issued a proclamation requiring a $100,000 payment for each new H-1B visa petition. The intent is to protect American jobs. That's a worthy goal, but if you subtract out politics and look at this from the ground level, the effect is devastating for smaller, fast-growing companies outside of major metro areas."
The President's proclamation requires a $100,000 payment for each new H‑1B visa petition, aiming to protect American jobs. The fee is negligible for large tech firms that already pay engineers $200,000–$300,000 annually, but it dramatically raises costs for smaller companies in cities like Raleigh, Austin, Atlanta, and Denver where software engineers average $130,000–$150,000. For startups, the added fee can double the effective cost of an engineer and make H‑1B hires untenable. Smaller entrepreneurial ventures run on tight margins where every dollar matters; new taxes, rules, or fees risk knocking them out. The policy further tilts the playing field toward the biggest companies and undermines job creation outside major metros.
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