Top U.S. senators are formally questioning major technology companies, including Amazon, Meta, and Google, about their extensive use of the H-1B visa program to hire foreign workers shortly after laying off tens of thousands of American employees. The inquiry focuses on whether these firms are replacing domestic talent with lower-paid foreign labor, a concern amplified by a new executive order imposing a $100,000 fee on companies sponsoring new H-1B employees.
Key Takeaways
- Senators Chuck Grassley and Dick Durbin have sent letters to leading tech firms demanding data on their hiring practices following mass layoffs.
- The inquiry questions whether H-1B visa holders are paid less than their American counterparts for similar roles.
- Amazon is highlighted for sponsoring 14,000 H-1B visas in 2024 after dismissing thousands of workers, citing AI adoption.
- A recent executive order now requires companies to pay a $100,000 fee for each new H-1B employee sponsorship.
- The new fee has raised concerns among smaller tech firms and startups, who argue it favors large corporations and could stifle innovation.
Bipartisan Scrutiny on Tech Hiring
In a series of letters addressed to the leaders of Amazon, Meta, Apple, Google, and Microsoft, Senators Chuck Grassley (R-Iowa) and Dick Durbin (D-Ill.) have requested detailed information regarding the companies' recruitment and hiring processes. The bipartisan effort seeks to understand the relationship between recent mass layoffs in the tech sector and the simultaneous submission of thousands of petitions for H-1B skilled labor visas.
The senators are specifically asking for data on any differences in salary and benefits provided to H-1B visa holders compared to American employees in comparable positions. They pointed out that the unemployment rate within the American technology sector remains significantly higher than the national average, making the preference for foreign workers a point of contention.
"With all of the homegrown American talent relegated to the sidelines, we find it hard to believe that [you] cannot find qualified American tech workers to fill these positions," the senators wrote in their letters to the tech firms.
The companies have been given a deadline of October 10 to provide the requested information. This move signals a renewed focus from lawmakers on the practices of some of the largest sponsors of H-1B visas in the country.
Company-Specific Allegations
The senators' letters detailed specific instances of what they consider questionable hiring patterns. Amazon, in particular, drew significant attention. According to U.S. Citizenship and Immigration Services data, Amazon sponsored the most H-1B visas in 2024, with 14,000 petitions.
This occurred after the company laid off tens of thousands of employees, with some reports indicating the company attributed the job cuts to the adoption of generative AI tools. The senators noted that Amazon proceeded to hire over 10,000 foreign H-1B employees in 2025.
H-1B Visa Sponsorships in 2024
- Amazon: 14,000
- Microsoft: 5,000
- Meta: 5,000
Source: U.S. Citizenship and Immigration Services data cited by The Wall Street Journal.
Meta also faced criticism. The company, which underwent a self-proclaimed "year of efficiency" that saw it reduce its workforce by a quarter between 2022 and 2023, continued with another round of 3,500 layoffs in 2025. During this period, Meta received approval to hire more than 5,000 H-1B employees. Similarly, Google was asked to explain its decision to lay off tens of thousands of workers despite reporting record profits.
New Executive Order Imposes Hefty Visa Fee
The congressional inquiry coincides with a significant policy shift from the White House. An executive order issued by President Donald Trump last week introduced a mandatory $100,000 fee for any company sponsoring a new H-1B employee. This new rule, which took effect on Sunday, represents a dramatic increase from the previous fees, which ranged from approximately $1,700 to $4,500.
The administration stated the fee is designed to prevent the H-1B program from being used to "replace, rather than supplement, American workers with lower-paid, lower-skilled labor." The executive order emphasized that the program's original intent was to allow companies to fill highly skilled positions for which qualified American workers are unavailable.
A History of Reform Efforts
Senators Grassley and Durbin have a long history of trying to reform the H-1B visa system. In 2023, they introduced the H-1B and L-1 Visa Reform Act, which aimed to close legal loopholes that they claimed allowed companies to displace American workers. The bill, which had support from Senator Bernie Sanders (I-Vt.), sought to implement stricter wage and education requirements but ultimately did not pass after being referred to the Committee on the Judiciary.
Rationale Behind the New Policy
To justify the new fee, the executive order cited government data showing a sharp rise in the number of foreign STEM workers in the U.S. The number more than doubled from 1.2 million in 2000 to nearly 2.5 million in 2019, while overall STEM employment grew by only 44.5% in the same period.
The order also highlighted a trend within the Information Technology sector. The share of IT workers in the H-1B program increased from 32% in 2003 to an average of over 65% in the last five years. The administration argues this shows an incentive for companies to outsource IT jobs to lower-paid foreign workers.
The order also mentioned reports of American IT workers being forced to train their foreign replacements as a condition of receiving severance packages, suggesting the program is not being used as intended.
Impact on the Tech Industry and Innovation
The immediate impact of the $100,000 fee has sent ripples through the technology industry, particularly among smaller companies and startups. While large corporations like Google and Microsoft can likely absorb the new cost, smaller firms have expressed panic, stating the fee gives Big Tech an unfair advantage and could stifle innovation.
Critics of the policy argue that Silicon Valley's ecosystem relies on a constant influx of new ideas and talent, often brought in by startups. By making it prohibitively expensive to hire specialized foreign talent, they claim the U.S. risks losing its competitive edge in technology leadership.
The White House has clarified that the fee only applies to new H-1B applicants and will not affect existing visa holders. President Trump suggested that the funds collected from the fees could be used to reduce taxes or pay down national debt. The order also proposed a weighted lottery system that would prioritize visa applications for higher-wage jobs.
Most major tech companies have remained silent on the new policy. One notable exception is Netflix founder Reed Hastings, who has publicly voiced support for the change. It is also worth noting that several prominent tech leaders, including Alphabet CEO Sundar Pichai and Microsoft CEO Satya Nadella, were once H-1B visa holders themselves.
