Box CEO Warns Trump’s $100K H-1B Fee Could Crush Startups

Box CEO Warns Trump’s $100K H-1B Fee Could Crush Startups

Three points you will get to know in this article:

1. Box CEO Aaron Levie warns the proposed $100,000 H-1B fee will crush startups by giving big tech an unfair advantage in securing international talent.

2. Startup founders and investors fear the high fee will drive foreign workers to Big Tech or push digital innovation and jobs overseas.

3. Levie’s reform proposal advocates for flexible H-1B visa caps and a focus on attracting “the absolute best” to increase, not decrease, American wages.

The $100K Fee: A ``Spending Game`` Startups Can't Win

Aaron Levie, the CEO of Box, is protesting President Trump’s $100,000 H-1B visa cost, claiming it will unfairly favor big tech firms over financially challenged startups in the race for international talent.  Together with Andreessen Horowitz partners, Levie made the case on “The A16z Podcast” that the high cost structure effectively makes recruiting people abroad “a spending game” that smaller businesses cannot win.  Starting on September 21, the new regulation will drastically increase costs from the current $2,000 to $5,000.

The CEO of the Box supported Keith Rabois of Khosla Ventures’ far lower $20,000 price, arguing that it wouldn’t stop smaller businesses from bidding for qualified personnel.  Trump’s fee may “kneecap their hiring in the talent wars,” according to startup founders who have already told Business Insider, driving foreign workers to Big Tech firms that can more readily stomach the costs.

The Risk of Driving Talent Overseas

The issues are not limited to the startup scene in Silicon Valley.  Since competent programmers can now work remotely from places like India and Eastern Europe, billionaire investor Michael Moritz, whose portfolio includes Google and PayPal, has cautioned that the policy could backfire by pushing digital innovation overseas.

An Alternative: Levie's Six-Point H-1B Reform Strategy

Levie presented a more comprehensive six-point strategy for H-1B reform that went beyond the price structure.  He advocated for flexible visa caps that may range from 5,000 to 80,000 each year, depending on the real availability of talent.  “There’s not a fixed number of the world’s best talent,” he said.

His plan places a strong emphasis on luring “the absolute best in the world” while making sure that H-1B programs increase American wages rather than decrease them.  Citing instances such as state school Master’s grads becoming AI engineers as “positive sum” contributors to the economy, Levie cautioned against disregarding junior-level foreign talent.

Beyond Startups: The Bigger Picture for U.S. Competitiveness

Given that successful immigrant CEOs like Google’s Sundar Pichai and Microsoft’s Satya Nadella have come to represent the potential advantages of the H-1B program, the issue raises more general concerns about America’s ability to compete in luring talent from around the world.

Start typing and press Enter to search

Shopping Cart