President Donald Trump signs an executive order on Sept. 19, 2025, introducing a $100,000 fee for H-1B visas that allows foreign nationals permanent residency and a pathway to U.S. citizenship. (Photo by Andrew Harnik/Getty Images)

A proclamation signed by President Donald Trump last week seeking to restrict entry of non-immigrant workers to the U.S. and apply a $100,000 fee to H-1B visa applications created confusion and concern within the tech industry over the weekend. 

Immediately after Friday’s announcement, companies of all sizes, including tech giants Microsoft and Amazon and smaller startups, began calling any workers with H-1B visas who were traveling outside the U.S. to return to the country by the proclamation’s deadline of midnight Sunday. 

“It’s been seismic, to say the least,” said Nicole Gunara, a principal immigration lawyer with Manifest Law. “People are trying to fight to get out of planes, cancel flights, fly back as quickly as possible, privately chartering boats and planes in the night.”

The Trump administration has since clarified that only new H-1B visa applications would be subject to the fee. Officials also said the proclamation would not impact the ability of visa holders to travel to and from the U.S., but the announcement sent many companies and their foreign workers into a “panic,” Gunara said.

H-1B visas are given to non-immigrant foreign candidates with college degrees who fill highly skilled positions that U.S. companies struggle to hire for. Each year, the U.S. caps the number of new visas to about 85,000, and there were about 730,000 H-1B workers in the U.S. at the start of 2025. 

The visas have traditionally cost between just under $1,000 to a few thousand dollars a year, and are paid by the companies. Companies must pay their H-1B workers at least an average wage for their geographical area, to not undercut the cost of wages for other workers. In 2023, the median wage for H-1B workers was $118,000, on par with the 90th percentile ($121,000) of all U.S. wages.

Many of these roles are in information technology, with Amazon, Microsoft and Meta leading the top Fortune 500 companies with the most H-1B visa workers, with 12,391 workers, 5,189 workers and 5,123 workers respectively. About 70% of H-1B visas went to Indian workers and nearly 12% went to Chinese workers last year. 

Trump’s proclamation calls for American companies to rely on American workers for these roles, saying there is “abuse” of the H-1B program. But domestic educational institutions just aren’t preparing Americans for the type of skilled labor that many of the tech companies are seeking, said Elizabeth Ricci, immigration attorney and partner at Rambana & Ricci.

Trump has cut science funding to its lowest level in at least 35 years, and his cuts to the National Science Foundation and other research organizations are having direct effects on K-12 and college tech education. 

“It’ll have a huge effect,” Ricci said of the cost of fees on the industry. “We can’t have it both ways, where we’re not educating the people we need and also having such an incredibly high fee to be able to get a visa to bring someone in to do work for places like Apple and Google.”

U.S. companies have faced a shortage of skilled tech workers for years. Recruiting and talent firm Robert Half reported 87% of tech leaders said they faced challenges finding skilled talent earlier this year. And Silicon Valley tech giants have long sought global talent to help build American companies.  

“There is a dire shortage of extremely talented and motivated engineers in America,” X CEO Elon Musk posted on the platform, earlier this year. He compared tech companies to a pro sports team scouting players. 

“If you force the world’s best talent to play for the other side, America will LOSE,” he wrote.

But large tech companies will not be the only ones to feel the effects of the change if it is upheld. Startup companies, many of whom are responsible for new technology advances, also rely on H-1B visa workers. 

Pedro David Espinoza, a Peruvian-American entrepreneur and investor, said that many of the startups he works with in the Bay Area have hired H-1B workers to their small teams of 20 or 30 people. 

“We probably are going to skip on many foreign hires altogether, because it’s really expensive, and this will definitely, to a certain degree, stifle innovation,” he said.

Ricci said she thinks the $100,000 fee will result in fewer jobs, and may make America’s global competitors more attractive to these highly-skilled workers. 

“People aren’t going to want to come here if the rules are changing day by day, and they’re going to be put in jeopardy just by going home for a vacation or to see a loved one and not know if they’re going to be able to come back. It’s too tenuous,” she said. “And if they can have promises of continuity in places like the UK, they’re going to go there, and they’re going to make those countries better.”

Gunara said she’s unsure that Trump’s proclamation will have the desired effect of hiring more American workers. In the last few days, she’s heard from clients that they’re considering offshoring tech teams, or setting up entities outside of the U.S., maybe in Canada or somewhere with similar time zones. Companies may also pursue alternative plans for these foreign workers, like a J1 visa, which allows people to research in the U.S. for a temporary period of time. 

Gunara said she believes many people are aligned on the idea that America needs the “best and brightest” talent, but that we could be more mindful of cultivating domestic talent where possible. She suspects there will be legal challenges to the action, but that it speaks to the larger Trump administration attitude toward immigration. 

“Innovation moves immediately, right? Innovation doesn’t wait for that talent to already be trained,” Gunara said. “And I think that that’s going to be the inflection point between the initiatives of the government versus what companies are going to be able to do.”

As power-hungry data centers proliferate, states are searching for ways to protect utility customers from the steep costs of upgrading the electrical grid, trying instead to shift the cost to AI-driven tech companies. (Dana DiFilippo/New Jersey Monitor)

Two environmental groups are warning state residents about the amount of energy and water that is set to be used following the construction of AI data centers in southern Wisconsin. 

In an analysis released Tuesday, Clean Wisconsin found that two data centers approved for construction in Ozaukee and Racine counties will consume enough energy to power 4.3 million homes — nearly double the 2.8 million housing units in the state. 

The first AI data warehouse, operated by Microsoft, is set to open next year in Mount Pleasant. The company has promised it will support 500 jobs. The $3.3 billion project is located at the site initially planned for Foxconn’s massive manufacturing plant. 

Further north in Ozaukee County, Denver-based Vantage Data Systems has acquired 700 acres of land in rural Port Washington. The company has planned a campus that will hold 11 data center buildings and five substations, according to concepts approved by the local government. 

Clean Wisconsin’s analysis found that these two projects will require a combined 3.9 gigawatts of power and hundreds of thousands of gallons of water to keep the buildings cooled. 

“To put this in perspective, that is more than three times the power production capacity of Wisconsin’s Point Beach nuclear plant,” Paul Mathewson, Clean Wisconsin science program director, who conducted the analysis, said in a statement. “And because only two of the data center projects have disclosed their power needs, we know this is really just a fraction of what the energy use would be if all those data centers are ultimately built.”

The power needs of the two sites are just the tip of the iceberg for the energy and water needs of data centers, which house the servers used to host chatbots such as Chat GPT, stream video and use social media. Microsoft has plans for a smaller data center in Kenosha County. Work is also underway on a data center on 830 acres in Beaver Dam reportedly for Facebook owner Meta. In addition, a Virginia-based company has eyed a site in Dane County, Wisconsin Rapids has plans for a $200 million data center and Janesville is seeking to build a center in a former General Motors assembly plant. 

A proposed project in Caledonia has been delayed following  local resistance to the project’s proposed rezoning of 240 acres of farmland. The community’s plan commission postponed a July vote on the proposal until later this month. 

Environmental advocates say local officials and the state’s power companies are rushing to attract data centers to Wisconsin based on the ambiguous promise of jobs without accounting for the effect they could have on a community’s water sources and energy needs. Increases in the amount of power used by the state could result in the state relying more heavily and for longer periods on non-renewable sources of energy and raise energy rates for households. 

‘More questions than answers’

“If data centers come to Wisconsin, they must benefit  — not harm — our communities. But right now, we have far more questions than answers about their impacts. How much energy and water will a project use? How will those demands be met? Will there be backup diesel generators on site and how often will they be fired up for testing? Our communities don’t have the transparency they need and deserve,” Chelsea Chandler, Clean Wisconsin’s climate, energy and air director said. 

Data centers also often emit a constant humming sound as the servers work inside, creating an irritating noise pollutant for neighbors.

Both the Mount Pleasant and Port Washington projects are close to Lake Michigan, raising further complications about the centers’ use of water and the protection of the Great Lakes. The Foxconn site in Mount Pleasant was already at the center of a controversial plan to divert 7 million gallons of water per day from Lake Michigan. 

“There has been very little transparency about the amount of water that will be used on site at these proposed data center campuses. Add to that a lack of transparency about energy use, and it’s impossible to know what the impact on Wisconsin’s water resources will be,” Sarah Walling, Clean Wisconsin’s water and agriculture program director said. “Communities need to know what the on-site demand will be on the hottest, driest days of the year when our water systems are most stressed. And we need to understand how much water will be needed off site to meet a data center’s enormous energy demands.”

Demanding water-use information from Racine

Earlier this week, Midwest Environmental Advocates filed a lawsuit against the city of Racine for records about the Mount Pleasant center’s projected water usage. Water for the center will be provided by the Racine Water Utility under an agreement with the village of Mount Pleasant. 

The lawsuit, filed on behalf of Milwaukee Riverkeeper, is seeking to force Racine to hand over information about projected water usage requested through an open records request in February. In a news release, MEA noted that many companies constructing data centers across the country require that local governments sign non-disclosure agreements. 

The legal advocacy group noted that data centers can use as much water as a small to medium sized city and the public has a right to know the scale of water use. 

“Wisconsin law requires public officials to respond to public records requests ‘as soon as practicable and without delay.’ Yet more than six months after making their request, our clients are still waiting,” MEA legal fellow Michael Greif said. “This blatant disregard for the Public Records Law violates their rights and deprives them of the transparency they deserve. Community members have a right to know how much water a data center will use before it is built.”