Silicon Valley Rep. Ro Khanna says the H-1B visa needs change — but a 'blanket' $100k fee isn't the solution

Published on October 3, 2025

Silicon Valley Rep. Ro Khanna says the H-1B visa system needs reform but warns that a proposed $100,000 blanket fee on new applications would punish startups and stifle innovation. Instead, Khanna calls for targeted changes like raising wage floors, cracking down on shell companies, and ensuring merit-based selection.

Silicon Valley Rep. Ro Khanna says the H-1B visa needs change — but a 'blanket' $100k fee isn't the solution

Why Rep. Ro Khanna Opposes a “Blanket” $100K Fee for H-1B Visas

The U.S. immigration debate is heating up again. Rep. Ro Khanna, whose Silicon Valley district is home to many tech startups and innovators, has publicly criticized a proposed $100,000 flat fee on new H-1B visas, arguing that while reform is needed, a one-size-fits-all approach would do more harm than good.

In a recent interview, Khanna was clear:

“We need reform of the H-1B visa system, but a blanket $100,000 fee is not the solution. That would hurt startups and smaller companies that don’t have the resources of big tech. We should be cracking down on abuse, not punishing innovation.” — Rep. Ro Khanna

The Context: What’s Proposed & Why It Matters

In September 2025, the Trump administration announced a sweeping change to the H-1B visa regime. Among the most controversial: a $100,000 fee levied on new applicants. Officials also proposed scrapping the traditional lottery system in favor of a merit- or wage-based allocation.

Critics warned that the measure would disproportionately impact smaller firms and startups, which often lack the financial cushion of large tech giants. Some have already started exploring offshoring or hiring alternatives due to the sudden cost shock.

The White House later clarified that existing H-1B visa holders and renewals would be exempt from the $100,000 fee, which is meant only for new applications.

Khanna’s Take: Reform, Not Shock Therapy

Khanna didn’t oppose reform—far from it. He recognizes that the H-1B system has flaws. But he believes the proposed blanket fee is a blunt instrument that will:

Stifle startups’ growth: Many new and small firms rely heavily on skilled foreign talent. A steep upfront cost could prevent them from competing.
Favor big tech over innovation: Established companies can absorb such costs; nascent players may not.
Create unintended chilling effects: Global talent might choose other countries with more welcoming visa regimes.
Fail to target abuses precisely: A blanket fee doesn’t distinguish between legitimate hires and exploitative practices.

As Khanna put it:

“We need to raise wages, prevent shell companies from gaming the system, and ensure merit-based selection. But let’s not destroy the startup ecosystem with a misguided fee.”

Reactions from Across the Tech Sector & Beyond

The $100K rule has drawn fire from many quarters:

Tech leaders: Some support visa reform in principle, but call the fee excessive. Even Nvidia’s Jensen Huang said the fee was “too high.”
Startup founders: Several argue the policy places an unfair burden on small companies with limited capital.
Legal & governmental pushback: California is exploring legal action against the fee’s enforcement in its state, questioning whether the policy is arbitrary.
Congressional moves: Senators like Chuck Grassley and Dick Durbin have reintroduced bills aimed at reforming H-1B and L-1 visas more holistically.

What Needs to Happen for Balanced Reform

Khanna’s objections underscore a path forward: reforms that are targeted, evidence-based, and sensitive to the reality of innovation ecosystems. Key steps include:

Income/Wage thresholds — Ensure H-1B holders earn enough to avoid undercutting local labor
Merit-based selection with transparency — Leverage skills, education, experience
Stricter enforcement against abuse — Crack down on shell companies and repeated filings
Tiered or scaled fees — Fees calibrated to company size, maturity, or revenue
Protections for startups — Exemptions or sliding scales to prevent crushing new entrants
Bipartisan legislative backing — Reforms authorized through Congress rather than by executive fiat

Why This Debate Matters

Innovation depends on global talent. The U.S. tech ecosystem’s edge has long been its ability to attract top minds worldwide. Overly harsh visa rules could chip away at that advantage.
Economic ripples: Startups create jobs, grow economies, and fuel future breakthroughs. If their access to talent is hampered, the broader tech economy could suffer.
Global competition is real: Countries such as Canada, Singapore, Germany, and India are vying to be talent havens. Policy missteps may push aspirants elsewhere.
Policy correctness & fairness: Visas aren’t just economic tools—they’re about fairness, equity, and maintaining a system that rewards merit and integrity.

Conclusion

Rep. Ro Khanna’s critique offers a timely reminder: in policymaking, nuance matters. The H-1B system shouldn't be upended by simplistic cures. If done well, reform can protect American workers, curb abuse, and continue to make the U.S. a magnet for talent. If done poorly, it risks pushing innovation—and promising startups—out of reach.