US President Donald Trump’s push to overhaul the H-1B visa programme is gathering support from some corners of the US tech industry, as concerns grow over job prospects for American graduates.
In an interview with Fox News, Skillstorm CEO Justin Vianello said there were “big challenges” in how the current visa system affects college hiring, especially for new graduates in computer science and engineering. He said there was a “concerning” level of unemployment among young IT professionals in the country.
The Trump administration unveiled its new H-1B visa policy in September, introducing a one-time fee of $100,000 for fresh visa petitions filed on or after 21 September. The previous application fee was about $1,000.
‘Three-headed monster’ facing US graduates
Vianello described a tough hiring environment for American graduates entering the tech industry, calling it the “three-headed monster.”
He told Fox News that employers often pay “significantly less” to H-1B visa holders for similar roles, which gives companies a financial reason to choose them over local hires.
The second challenge, he said, comes from Optional Practical Training (OPT), an extension available to F-1 visa-holding STEM graduates. Because OPT workers do not pay Social Security or Medicare taxes, he said they are “automatically 15% cheaper.”
He added that companies can avoid hiring within the US altogether by offshoring jobs.
According to Vianello, the original goal of H-1B was to attract and retain skilled workers, particularly those graduating from US universities. He said the impact on American graduates has been “really bad.”
He also noted his own experience. “The reason I’m in America, along with so many critical people who built SpaceX, Tesla and hundreds of other companies that made America strong, is because of H1B,” he said.
What the changes involve
The administration says the new rules will push employers to pay higher wages or reserve visa petitions for advanced-skill roles.
Vianello told Fox News Digital, “Certainly I think that the $100,000 fee on any new applications is gonna go a long way toward changing behaviour, but that’s focused on H-1B.”
He said he supports worker visa programmes provided they bring in top-tier talent and do not leave American workers behind. “I fully support using visas to attract top-tier technologists to the US,” he said. “What I oppose is the misuse of programs like H-1B and OPT as tools for labour arbitrage, which undercuts entry-level opportunities for US tech graduates and distorts the talent market.”
Support from tech leaders
Several high-profile business leaders have backed the fee increase.
Nvidia CEO Jensen Huang told CNBC, “We want all the brightest minds to come to the US and remember immigration is the foundation of the American Dream,” adding that he was “glad to see President Trump making the moves he’s making.”
OpenAI CEO Sam Altman said that “sort of outlining financial incentives seems good to me,” noting that the “smartest people” should still be able to enter the country.
Netflix co-founder Reed Hastings also welcomed the move. He wrote on X, “Trump’s $100k per year tax is a great solution. It will mean H1-B is used just for very high-value jobs, which will mean no lottery needed, and more certainty for those jobs.”
Legal pushback
However, business groups are pushing back strongly. The US Chamber of Commerce has sued the administration, calling the policy “plainly unlawful.”
Neil Bradley, executive vice president of the Chamber, said the fee “will make it cost-prohibitive for US employers, especially start-ups and small and midsize businesses, to utilise the H-1B programme.”