Silicon Valley Rep. Ro Khanna says the H-1B visa needs change — but a 'blanket' $100k fee isn't the solution

Representative Ro Khanna, a prominent voice from Silicon Valley, recently expressed his concerns regarding the proposed reforms to the H-1B visa system. Speaking on the "All In" podcast, Khanna emphasized that while the system requires adjustments, the blanket $100,000 fee introduced by the Trump administration is not the right solution. The new fee, aimed at skilled foreign workers seeking employment with major U.S. multinationals, has sparked significant debate. Alongside this fee, the administration's proposal includes altering the lottery selection system to favor candidates based on their skill level and wages, a move intended to prioritize American job preservation. Khanna articulated his objections, stating, "I don't love the blanket $100,000 fee; I think that's not the best way to reform it." He pointed out that such a fee disproportionately impacts startups, which may struggle to compete for talent against larger tech firms that can easily absorb the costs. As a member of Congress since 2017, Khanna also highlighted the need for a more nuanced approach to H-1B reforms. He suggested the implementation of a prevailing wage standard as a more equitable alternative, indicating his willingness to explore reforms that truly address the challenges without stifling innovation. Concerns surrounding the proposed fee have resonated with startup founders and employees, who fear losing skilled workers to larger companies. Khanna noted that certain tech giants were among the most significant employers of H-1B visa holders in the past year, exacerbating the competition for talent. In his discussion, Khanna also raised issues of misuse within the H-1B lottery system, where some companies apply multiple times or use shell entities. He pointed out the global competition for AI talent, citing that a significant portion resides in China. "I want some of those folks to come to the United States so we can stay ahead of AI," he stated, reinforcing the legitimate need for the H-1B program. This sentiment was echoed by LinkedIn cofounder Reid Hoffman, who also criticized the blanket fee approach, arguing for a system that accommodates startups unable to pay such high fees. Hoffman proposed that there should be an unlimited number of H-1B visas available, with fee structures that reflect the varying capacities of different companies, particularly startups. Hoffman noted, "Actually, Trump's idea resembles an idea that I've been pitching for eight plus years. You have to do the whole idea otherwise it's a disaster," underscoring the complexity of the issue at hand.