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Billionaire VC Mike Moritz slams new H-1B visa fee as ‘brutish extortion scheme’
Billionaire VC Mike Moritz criticizes the Trump administration's new $100,000 fee on H-1B visas, calling it a 'brutish extortion scheme'. He argues that this move will harm U.S. tech companies by incentivizing them to move jobs overseas, contrary to the intent of filling labor shortages. Moritz advocates for increasing H-1B visas rather than restricting them, citing the success of foreign-born tech leaders.
Key points
- Trump administration introduced a $100,000 annual fee on H-1B visas.
- The fee affects companies hiring skilled foreign workers primarily in tech.
- Michael Moritz describes the fee as an extortion scheme aimed at tech companies.
- He explains that tech companies hire foreign workers to address skill shortages, not to replace Americans.
- Moritz warns that the policy could lead companies to relocate jobs to cities like Istanbul and Bangalore.
- He suggests increasing the number of H-1B visas and granting citizenship to foreign STEM PhD graduates.
- Moritz highlights successful foreign-born tech leaders as evidence of the program's benefits.
- Moritz's personal experience with the precursor visa underscores his appreciation for the U.S.
Why it matters
- Visa policies have historically impacted the tech labor market and immigration trends.
- In 2025, the global competition for tech talent will increase, making the H-1B debate even more pertinent.
- Tech companies continue to rely heavily on foreign talent to fill skill gaps as domestic labor remains scarce.
- Responses to immigration policy can shape future workforce diversity and innovation in the tech industry.
Moritz's critique highlights the potential downsides of restrictive immigration policies, advocating for a more inclusive approach that recognizes the value of foreign talent in fostering innovation and addressing labor shortages in the U.S. tech sector.