ACT | The App Association is Deeply Concerned About Deleterious Effects of H-1B Visa Announcement

Washington, D.C. – Last week’s announcement of a new $100,000 tax on H-1B visas is a gut punch to small and medium-sized tech companies. For more than 15 years, ACT | The App Association has firmly held the position that access to H-1B visas for specially skilled employees is a huge competitive advantage for our small business members and a driver of their innovation.

“By making H-1B talent financially infeasible for startups and small developers, this policy punishes America’s most innovative companies,” said Morgan Reed, president of ACT | The App Association. “At a time when big tech companies are paying tens, and sometimes hundreds, of millions of dollars for talent, especially in AI, access to a global pool of talent is essential for our members. Giants can afford to pay $100,000 to bring on an employee, but for small technology companies there is no way to make that work.”

The announcement has also generated widespread confusion due to conflicting statements about scope and effect from the White House and Commerce Department. Uncertainty and unpredictability are bad for any business, but especially for small companies who do not have the same capital reserves or multiple lines of revenue as their larger competitors to see them through chaotic periods.

To address both the financial consequences as well as the confusion, the App Association is calling on the Administration to update the Executive Order to maintain the current fee structure of $2,000 – 5,000 per application for an H-1B visa for small companies.

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