H-1B Visa Fee Debate Heats Up After Wave of Tech Layoffs

The U.S. technology sector is reeling from a wave of layoffs, and with it has come a renewed political and public demand for a $100,000 H-1B visa fee increase. Advocates argue that the program, once designed to fill niche roles in specialized industries, is now contributing to the displacement of American workers in software development, coding, and support jobs.

Kevin Lynn, head of the Institute for Sound Public Policy, has long pushed for stricter controls on the H-1B system. He told the NYT News Service that momentum is finally building. “Our voices are being heard,” he said, noting that the issue has gained fresh traction with lawmakers after the surge in tech job losses.

Tech Layoffs and the H-1B Visa Connection

The H-1B visa program was originally created to help U.S. employers fill roles requiring advanced technical expertise when no qualified American workers were available. But federal data reveals that nearly two-thirds of all approved H-1B applications in 2024 were in computer-related occupations—jobs with a median salary just above $100,000.

For software developer Stephen Schutt, who collaborates with Lynn, the system has strayed far from its purpose. “We see how everything is abused,” Schutt said. “If this continues, there’s a real chance that people who are born in America won’t be able to get jobs.”

According to census data, roughly 20% of the 2.3 million U.S. software developers are foreign-born. While this presence wasn’t considered a threat during the tech boom years, mass layoffs in recent times have triggered sharp scrutiny of the visa program.

Political Momentum Grows in a Changing Job Market

For years, campaigns calling for H-1B reform—including Lynn’s ad campaigns in San Francisco and efforts to block outsourcing at the Tennessee Valley Authority—failed to resonate. The issue barely surfaced during President Trump’s first term.

That changed after the 2024 election cycle, when right-wing figures aligned with Trump’s nationalist agenda began spotlighting the H-1B debate. According to Lynn, the combination of layoffs and economic uncertainty created fertile ground for discontent. “Legislators are hearing from constituents saying, ‘Why can’t my kid get a job? And why are there so many Indians?’” he told the NYT News Service.

Employers’ Use of H-1B Visas Under Scrutiny

Critics argue that the majority of H-1B holders are not employed in high-level innovation, but in routine coding and technical support roles. Kirk Doran, an economist at the University of Notre Dame, echoed that view, saying the system encourages companies to use foreign workers for tasks that could be filled by U.S. graduates.

Concerns also extend to the permanent labor certification (PERM) process. Investigations have found that major firms—including Facebook and Apple—posted job openings they never intended to offer to American candidates, a tactic used to sponsor foreign workers for green cards.

Voices from the Ground: U.S. Tech Workers Speak Out

Several displaced tech workers told the NYT News Service that they lost jobs while employers simultaneously filed for H-1B visas. A UI designer revealed his entire department was eliminated in 2024, only for his employer to request a dozen H-1B visas for similar positions. A machine learning engineer also described being laid off twice, each time replaced by contractors working on H-1B visas for routine tasks.

Also Read : UK Rules Out Visa Relaxation for Indians Amid Trade Boost