Impact of Trump’s H1B Visa Fee Hike on MBA Graduates

What are the Changes Introduced to the H1B Visa in USA?

The Trump administration announced in September 2025 an increased H1B Visa fee of usd 100,000 for international workers. Additionally, the US Department of Homeland Security (DHS) has proposed new regulations that would give preference in the H1B lottery to applications for higher-wage jobs. This means the government is looking to increase the wage levels required for H1B positions, ensuring that these workers are not offered lower-paying jobs that fall below the median wage in the USA. Moreover, the DHS has clarified that the $100K fee will not affect those who already have the H1B status or those changing their status while in the USA. It will only apply to first-time applicants from abroad.

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Benefits of H1B Visa Fee Hike to MBA Graduates

While the hike in the H1B visa fee and the new wage-based selection system might be a major reform in USA for international students, there are few benefits for MBA graduates.

• The new H1B system gives priority to applications that offer higher salaries. Many MBA graduates from top business schools work in fields such as consulting, finance, or tech that offer higher pay packages, making them more likely to be selected for the visa.

• Companies looking to hire international professionals for managerial positions may look for MBA graduates. This could encourage employers to offer higher salaries to meet H1B requirements.

• There will be a decrease in the competition for H1B visa positions as lower-paid roles are not being prioritized under the new rule.

Challenges of H1B Visa Fee Hike for MBA Graduates

There are certain challenges that MBA graduates might have to face after the introduction of H1B visa fee of 100K. These challenges are as follows:

• The increased H1B fee of $100,000 can be a financial challenge for employers looking to hire international talent. Smaller companies and startups might not be able to sponsor H1B visas, which could reduce job opportunities for MBA graduates.

• Many MBA graduates start their careers in marketing, operations, or business development roles that fall below the high-wage level in USA. With the new regulations, these positions might not be given priority in case of an H1B visa. For instance, at one school in the US, the average salary for sales and marketing positions was around $148K, which is lower than the median salary in some cities. Meanwhile, at the University at Buffalo, the median salary was about $81K.

• For international MBA students in the USA on F1 visas, the path to long-term employment after graduation is becoming more uncertain. This also affects their return on investment.

• Some companies might react to the increased costs by pausing H1B sponsorships. This could make it even more challenging for international MBA graduates to enter the US job market, even if they are exceptionally qualified.

• The data indicate that between 2021 and 2024, almost half of the H-1B petitions for individuals with MBAs were for positions classified at the second wage level, which is below the median. Additionally, 21% of these petitions were for entry-level jobs, while only 9% fell into the highest wage category. This suggests that many MBA graduates might end up in roles that are not prioritized under the current new rules, making the competition for visas even tougher and more uncertain.

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