H-1B Visa Debacle in the U.S. and Why Canadian Companies Are Poised to Capitalize

The United States’ H-1B visa controversy is rapidly reshaping the future of global talent mobility. On September 19, 2025, U.S. President Donald Trump stunned the tech industry by announcing a $100,000 USD fee for new H-1B applications, alongside the rollout of a new “Trump Gold Card” visa for wealthy investors.

The reaction has been swift. Tech companies, immigration lawyers, and economists warn that this move will restrict access to foreign talent that U.S. companies have long relied on. Reuters notes that the new restrictions have already caused panic, with legal challenges expected. At the same time, both BBC News and CBC News report that Canada is being urged to capitalize on the fallout. With faster processing under the Global Talent Stream and more stable immigration pathways, Canadian companies are seizing the moment to attract top global talent.

What Changed in the U.S.?

The H-1B visa is the primary pathway for skilled foreign workers in the U.S., especially in STEM and tech sectors. Champions of the program include Elon Musk, while companies like Amazon, Apple, and Google often rely on it.  With the new proclamation, some renewals may still be possible, but most new hires are directly affected. U.S. companies are now facing higher expenses and longer delays, with some already talking about offshoring jobs or relocating roles. Reuters reported that July 2025 saw one of the highest monthly numbers of affected workers in a decade.

Why Canada Looks More Appealing

Canada has already positioned itself as an alternative. In 2023, Ottawa launched a temporary program for U.S.-based H-1B holders to apply for Canadian work permits. While not all applicants relocated, many did pivot north after failing to secure renewals in the U.S. Canada has been investing in ways to attract highly skilled workers for years, and the timing couldn’t be better. Programs like the Global Talent Stream allow certain employers to bring in workers in as little as two weeks. Unlike the U.S., there are no sudden six-figure fees, and workers often have clear pathways to permanent residency through Express Entry or provincial programs.

For international professionals, this makes Canada more stable and attractive. For employers, it means faster hiring and fewer policy shocks. Immigration experts point out that Canadian companies are already actively recruiting foreign talent who might otherwise have gone to the U.S. Experts caution that Canada faces its own hurdles. Economist Mikal Skuterud from the University of Waterloo points out that immigration levels in the country have recently been scaled back, and wages are lower than in the U.S. Canada’s Temporary Foreign Worker Program has also come under political fire, with several Ministers calling for it to be scrapped.

What Employers and Workers Should Know

The Canadian tech sector is already eager to move forward. “Think of it like a massive game of musical chairs,” says Martin Basiri, CEO of Passage. “Top talent is looking for a place to sit and America just removed many of their options. Canada can either watch from the sidelines or quickly add new chairs.” Toronto immigration lawyer Andres Pelenur told CBC News that small and medium-sized U.S. firms unable to pay the $100,000 fee may choose to open offices in Canada instead, keeping workers in North American time zones with fewer immigration hurdles. Others urge caution. Daniel Wigdor, CEO of AXL, warned that Canada risked being used as a “holding pen” for workers who ultimately want to go back to the U.S. market. Even so, the consensus among lawyers, recruiters, and economists is clear: the Trump administration’s actions will push skilled workers north, provided Canada moves quickly to streamline pathways like Express Entry and the Global Talent Stream.

If you are an employer, you’ll need to:

• Make sure job offers meet Canadian wage and occupation requirements.

• Be prepared to comply with recruitment and advertising rules under the Temporary Foreign Worker Program or Global Talent Stream.

• Plan ahead for tax and HR considerations if you’re moving staff across borders.
  

If you are a skilled worker (including current H-1B holders), consider:

• Whether your U.S. petition is for renewal or a new entry, the rules differ.

• Looking at Canadian work permit options, including the Global Talent Stream, LMIA-based permits, or provincial nominee programs.

• Mapping out a long-term plan for permanent residency in Canada.
  

While the U.S. may eventually see legal challenges to the proclamation, these cases take time. In the meantime, Canada is positioning itself as a safer, faster, and more welcoming option.

Risks to Keep in Mind

Canadian rules are not a “free pass.” Employers must still prove they meet program requirements, and workers must provide complete, accurate applications. Delays or denials can happen if documents are missing or if eligibility is misunderstood. That’s why having an experienced immigration lawyer on your side is so important.

✅ How Ayodele Law Can Help

At Ayodele Law, we help both employers and international professionals take advantage of Canada’s opportunities in this shifting landscape. Whether you’re:

• A company looking to hire skilled workers quickly under the Global Talent Stream,

• An H-1B visa holder exploring your Canadian options, or

• A professional who wants to move to Canada permanently,

We can guide you through every step, from fast-track work permits to long-term permanent residency strategies.

📞Book a consultation today to give your application the best possible chance of success