Critics have long argued that some companies abuse the program by using it to replace U.S. workers with cheaper foreign labor. These concerns have merit. Studies have documented consulting and other firms paying foreign H-1B workers less than their U.S. peers in similar roles and even engaging in wage theft .

The Trump administration’s decision to impose a $100,000 fee on new H-1B visa applications stems from legitimate concerns about wage suppression and job displacement.

Critics have long argued that some companies abuse the program by using it to replace U.S. workers with cheaper foreign labor. These concerns have merit. Studies have documented consulting and other firms paying foreign H-1B workers less than their U.S. peers in similar roles and even engaging in wage theft .

Yet the U.S. government’s sledgehammer approach to these real problems will likely produce consequences far worse than the abuses it seeks to address. Rather than encouraging companies to hire more Americans, the dramatic fee increase—from roughly $1,000 to $100,000—will drive high-skilled work overseas and accelerate the decline of U.S. technological leadership. In addition to the fee, Washington will replace the current H-1B lottery with a new system that strongly benefits the largest employers instead of favoring startups and universities, where foreign workers would contribute more to innovation and future job growth.

When we first wrote The Immigrant Exodus in 2012, we detailed how unfriendly and irrational immigration policies were preventing the best and brightest from staying in the United States. Since then, the rationale for building a U.S. career has steadily eroded. Not only has it become much harder to legally bring your expertise to the United States, but other countries have grown far more attractive for talented individuals. Many offer essentially a free ticket to foreign researchers, including a clear path to citizenship.