Netflix Co-Founder Reed Hastings Backs Trump's $100,000 H-1B Visa Fee Amid Silicon Valley Backlash
Tech leaders across Silicon Valley have sharply criticized President Donald Trump’s new $100,000 H-1B visa fee, warning that it could threaten innovation and limit access to global talent. Yet Netflix co-founder Reed Hastings has broken from the industry consensus, calling the move “a great solution.”
Netflix’s Reed Hastings supports Trump’s $100,000 H-1B visa fee, breaking with Silicon Valley leaders warning of damage to innovation and talent.
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Posting on X, Hastings explained that after decades of working on H-1B policy, he believes the high cost would ensure visas are reserved for “very high-value jobs.” He added that the elimination of the lottery could provide employers with greater certainty when hiring.
Hastings’ position has drawn attention because of his political profile. As one of the Democratic Party’s largest donors, he rarely aligns with Trump, having previously stated that the former president “would destroy much of what is great about America.” His remarks also contrast with the dominant view in Silicon Valley, where leaders including Elon Musk have warned that the fee would stifle competitiveness and cut off crucial talent pipelines.
Venture capitalist Deedy Das, a partner at Menlo Ventures and a former H-1B holder, told CBS News that the fee undermines one of America’s biggest advantages: attracting global talent. He cautioned that smaller startups could lose months of financial runway if forced to absorb the additional cost, with some founders considering ending foreign sponsorship altogether.
The H-1B program was created in 1990 to allow U.S. companies to employ foreign workers in specialized fields such as engineering, medicine, and computer science. Each year, Congress caps new visas at 85,000—far below demand. While defenders say the program fills jobs that might otherwise go vacant, critics argue that outsourcing firms exploit it by undercutting American workers with lower-cost labor. Roughly 70% of visas currently go to Indian nationals, many hired through outsourcing companies such as Infosys, Wipro, and Tata Consultancy Services.
Trump’s Friday proclamation requiring a $100,000 fee per new petition immediately sent shockwaves through the tech industry. Initial comments from Commerce Secretary Howard Lutnick suggested the fee could be annual, intensifying concerns. By Saturday, the White House clarified that it is a one-time payment applied only to new petitions, not renewals.
The clarification eased some uncertainty but left broader worries intact. Reports surfaced of employers rushing H-1B holders into the U.S. before the fee takes effect, while individuals scrambled to adjust travel plans.
The announcement also triggered financial aftershocks in India. Shares of major outsourcing firms, including Infosys, Wipro, Tech Mahindra, HCL Technologies, and Tata Consultancy Services, dropped between 1.7% and 4.2% on Indian exchanges. Citi Research projected the fee could reduce IT sector earnings per share by roughly 6% if reliance on H-1B hiring continues.
Analysts such as JP Morgan’s Toshi Jain warned the policy could deter Indian students from pursuing U.S. education, given the higher costs associated with post-graduation work visas. At the same time, venture investors see potential benefits for India’s domestic startup ecosystem. Accel partner Prashanth Prakash suggested that top graduates may now build careers at home, while SquadStack CEO Apurv Agrawal emphasized that India’s expanding AI-first companies could become a new global hub for returning talent.
