Maple News reports that the U.S. government’s decision to raise the application fee for new H-1B visas to an eye-popping $100,000—effective September 21, 2025—may be one of the most consequential immigration policy shifts for the North American tech labor market in recent years.
The Biden administration has framed the move as a safeguard against perceived abuses of the H-1B system and a bid to prioritize American workers. The fee, over 20 times the previous average, mirrors the annual salary of many H-1B applicants and is anticipated to price out most small to mid-sized employers, effectively restricting access to foreign tech talent.
On the surface, this appears to open a door for Canada to capitalize on redirected global talent flows, particularly through programs like the Global Talent Stream (GTS). However, experts caution against assuming a windfall for Canada. The reality is more complex. While H-1B visa holders—predominantly from India—continue to seek alternative destinations, Canada’s own immigration system is feeling strain.
Canada has welcomed over 3 million temporary immigrants as of January 2025, leading to mounting public concerns over housing shortages, healthcare capacity, and youth unemployment. In response, the federal government has reduced immigration targets across all categories by 20% for 2025, limiting future pathways to permanent residency for many already in the system.
Meanwhile, Canada’s GTS, though faster and more predictable than the U.S. H-1B, comes with its own hurdles. Positions often require median salaries of $150,000 or more in cities like Toronto and Vancouver—well beyond what many startups and mid-tier tech firms can afford. These salary benchmarks are unlikely to attract companies facing budget constraints, especially as wage inflation continues.
The combination of restrictive U.S. visa policy and Canada’s growing immigration limitations may lead to an increase in offshore hiring. Companies looking for specialized talent while managing costs may increasingly opt to build remote teams in more affordable jurisdictions outside North America.
Traditionally, Canada has attracted global tech workers by offering a clearer pathway to permanent residence than the United States. But the rising cost of living, capped immigration intakes, and stringent wage requirements may dampen its competitive edge. As both countries steer toward economic protectionism, the talent landscape is shifting toward decentralized, remote-first models that transcend borders.
In short, while the U.S. H-1B policy change will undoubtedly challenge American employers, it doesn’t mean Canada will be the automatic winner. Unless Canadian immigration and talent acquisition policies adapt swiftly, the real beneficiaries may be countries with more agile remote work infrastructure and friendlier visa environments.