On This Page You Will Find
- What the $100,000 H-1B visa fee means
- Key impacts on U.S. and Canadian tech labour markets
- Why Canada may not benefit from the policy shift
- The role of Global Talent Stream and wage pressure
- How both countries are becoming less welcoming to tech immigrants
- Future outlook for offshore hiring and global competition
The Trump Administration recently unleashed a sweeping overhaul of the H-1B visa program by imposing an unprecedented $100,000 application fee on new visa petitions, effective September 21, 2025. This dramatic fee increase is more than 20 times the previous average and aligns with the annual salary of the typical visa applicant. The policy aims to prioritize American workers by discouraging companies from broadly recruiting foreign talent.
The Administration framed the new move as a necessary intervention to curb longstanding program abuses that critics claim have depressed wages and displaced U.S. workers. While the new fee applies only to initial H-1B applications – not renewals – it has sent shockwaves through the technology sector and immigrant communities that rely heavily on this skilled worker visa pathway.
Could Canada Benefit?
Many opportunists might expect Canada to reap benefits from this policy shift, especially through programs such as the Global Talent Stream. They are well advised however to avoid drawing such a conclusion, as many assumptions overlook the complexity of labour markets and immigration controls on both sides of the border.
In 2024, about 140,000 new H-1B visas were issued, predominantly to workers from India who accounted for 103,000 visas. Despite claims that these workers fill critical skills gaps, many H-1B holders earn relatively modest salaries ranging from US $97,000 to US $108,000 annually. Future wage requirements will likely rise alongside the prohibitive application fee, compounding costs and deterring employers from seeking this pool of foreign talent.
Typically, H-1B workers hold temporary status and only about 50% to 65% eventually secure green cards, often after several renewals spanning multiple years.
Permanent Residence Incentive
Canada has historically used permanent residence as an incentive to attract foreign talent who might otherwise pursue U.S. immigration pathways. However, since the COVID-19 pandemic, increased admissions to Canada under temporary and permanent immigration programs, resulting in more than three million temporary immigrants in Canada by January 2025, have led to challenges such as rising housing costs, healthcare strain, and high youth unemployment.
In response, Canada has scaled back its annual immigration levels across all programs by 20% for 2025, leaving a pool of temporary workers already in Canada, struggling to pivot towards more secured immigration status. Most will likely fail.
Moreover, the Canadian Global Talent Stream, a specialized program for high-skilled tech workers, similar to H-1B technology workers, mandates median salaries up to $150,000 annually in Toronto and Vancouver – a level few startups or mid-sized companies can afford.
As both Canada and the U.S. erect protectionist barriers to foreign labour, offshore work is poised to increase. Under current policies and labour market conditions, the costly new U.S. H-1B fee will likely eliminate the bulk of new non-essential applications.
But Canada’s gain from this shift is far from guaranteed.
FAQ
What is the new U.S. H-1B visa fee introduced in 2025?
As of September 21, 2025, the U.S. has imposed a $100,000 fee on new H-1B visa applications. This fee is intended to reduce reliance on foreign workers and prioritise American hiring.
Will the new H-1B fee lead to more tech talent coming to Canada?
Not necessarily. Although the U.S. fee may deter some applicants, Canada is also limiting immigration numbers and has its own wage and cost barriers, especially in tech hubs.
How has Canada responded to its rising temporary immigrant population?
Canada reduced its annual immigration levels by 20% for 2025, following pressure from housing, healthcare, and high youth unemployment strained by more than 3 million temporary residents.
What is the Global Talent Stream and how does it compare to H-1B?
Canada’s Global Talent Stream allows fast-track hiring of skilled tech workers but often requires median wages of up to $150,000 in major cities, which can be too high for many firms.
Could offshore hiring increase due to U.S. and Canadian restrictions?
Yes. With both countries tightening access and raising costs, companies may increasingly turn to offshore talent solutions to meet their tech hiring needs affordably.
