Trump’s $100,000 H-1B Fee and TikTok Deal Raise Strategic Stakes for U.S. Tech and Immigration
New executive actions could reshape how foreign talent enters the U.S. and who controls a key social media platform
IMMIGRATIONECONOMY
Image by Drazen Zigic on Freepik
In a dramatic move this week, President Donald Trump signed a proclamation that imposes a $100,000 supplemental fee on new H-1B visa applications, effective for submissions made after 12:01 a.m. Eastern Daylight Time on September 21, 2025, according to official guidance from U.S. Citizenship and Immigration Services.
The change immediately sent ripples through the U.S. tech and immigration sectors: many companies now face the prospect of investing heavily just to sponsor skilled foreign workers. “Very few employers would be willing to shell out that kind of money,” noted an immigration attorney in a CBS News analysis.
Crucially, the directive does not apply to existing H-1B visa holders or renewals, per the USCIS FAQ: it’s a one-time fee on new petitions only.
TikTok Deal: American Control, Chinese Algorithm
In parallel, Trump also signed an executive order finalizing a divestiture deal for TikTok’s U.S. operations, enabling American investors to gain majority control while ByteDance retains less than 20% ownership.
Under the agreement, TikTok’s recommendation algorithm will be licensed to the new U.S. entity, effectively insulating day-to-day control from ByteDance’s Chinese ownership.
Vice President JD Vance described it as a move to “protect American data privacy” and confirmed that Oracle and other U.S. investors—including Rupert Murdoch and Michael Dell—will play key roles.
Strategic Impacts and Industry Reactions
The $100,000 H-1B fee is being criticized as a potential barrier for startups and companies that depend on global talent for innovation. Business Insider+2Business Insider+2 In the healthcare sector, experts warn it could hamper the hiring of international medical graduates, especially in underserved regions.
Meanwhile, the TikTok divestiture signals a turning point in the battle over data sovereignty and foreign influence in tech platforms. However, skeptics question whether licensing the algorithm truly severs control.
As the U.S. seeks to recalibrate its immigration and tech policies, both moves may define its digital economy for years to come.