Billionaire VC Mike Moritz Denounces New $100K H-1B Visa Fee
The Trump administration announced a controversial new policy last Friday: an annual $100,000 levy on companies hiring skilled foreign workers under the H-1B visa program. This program permits 85,000 foreign professionals to enter the U.S. annually, predominantly fueling the technology sector’s talent pool.
Michael Moritz Slams Policy as ‘Brutish Extortion Scheme’
Michael Moritz, a veteran venture capitalist and former Sequoia Capital partner, sharply criticized the fee in a recent Financial Times op-ed. He likened the White House’s move to “Tony Soprano’s pork store,” branding it a “brutish extortion scheme” that fundamentally misunderstands the dynamics of tech hiring.
“Engineers with undergraduate degrees from the better eastern Europe, Turkish and Indian universities are every bit as well qualified as their American counterparts,” Moritz wrote, emphasizing the critical skill shortages that H-1B visas address.
Moritz warns that this punitive fee will backfire by incentivizing companies to relocate engineering and development work to cities like Istanbul, Warsaw, or Bangalore, rather than maintaining these jobs within the United States.
Misunderstanding the Purpose of H-1B Visas
According to Moritz, the policy’s premise—that foreign workers replace or undercut American labor—is flawed. Instead, H-1B visas fill essential skill gaps, enabling innovation and maintaining the competitiveness of U.S. technology firms.
He highlights the success stories of foreign-born leaders such as Microsoft’s Satya Nadella, Google’s Sundar Pichai, Elon Musk, and Instagram co-founder Mike Krieger as testaments to the program’s importance.
Proposed Alternatives to the New Fee
- Doubling or tripling the number of H-1B visas issued annually.
- Automatically granting U.S. citizenship to foreign nationals earning STEM PhDs from top American universities.
Moritz draws on his own experience as a beneficiary of the precursor to the H-1B visa in 1979, expressing gratitude for the opportunities the United States afforded him. He argues that expanding talent access, rather than imposing punitive fees, better serves the nation’s economic interests.
FinOracleAI — Market View
The introduction of a $100,000 annual fee on H-1B visa holders marks a significant regulatory shift with potential far-reaching impacts on the U.S. tech sector. Industry leaders warn this could accelerate the offshoring of tech jobs and inhibit innovation by restricting access to global talent.
- Opportunities: Could prompt domestic workforce development initiatives and incentivize automation.
- Risks: Increased relocation of tech operations abroad, talent shortages, and diminished global competitiveness.
- Policy uncertainty: May discourage foreign STEM graduates from pursuing careers in the U.S.
- Investor concerns: Potential slowdown in venture capital activity targeting tech startups reliant on international talent.
Impact: Negative — The new H-1B fee risks undermining the U.S. technology sector’s ability to attract and retain critical talent, potentially accelerating offshoring trends and weakening innovation leadership.
