While OBBB covers a broad range of policy areas, here’s a focused look at what matters most to the international startup ecosystem in the U.S.
Higher immigration fees raise the cost of international teams
One of the most immediate effects for international founders and startups will be the hike in immigration-related fees.
The bill imposes a new $250 charge on each nonimmigrant visa application — including popular startup work visas like H-1B, O-1, and L-1.
Employment Authorization Documents (EADs), which many founders and employees rely on, will now cost $550 per application.
For startups already juggling tight budgets, these higher costs will add up, especially for those sponsoring multiple international employees or founders.
The financial burden could slow hiring plans and add a layer of complexity to global talent acquisition.
Stricter public benefit verifications could impact employee families
The bill also tightens rules around access to public benefits like Medicaid, requiring more frequent immigration status verifications and extending waiting periods for green card holders.
While founders on work visas (O-1, H1-B, etc.) themselves are generally not eligible for Medicaid, their spouses and children might be affected.
This could translate into more pressure on startups to offer comprehensive private health insurance packages, adding to operational expenses.
Employee wellbeing, particularly for international hires with families, may become an area requiring more attention and support.
Clean energy and tech incentives face an uncertain future
For startups and investors in cleantech, the bill signals a major shift. Several clean energy tax credits — previously cornerstones of federal support for renewable projects — are being phased out faster than expected.
Credits for solar, wind, hydrogen, and nuclear projects now require rapid construction timelines to qualify. Electric vehicle incentives and residential energy credits are set to expire as soon as the end of 2025.
These changes compress project timelines and increase execution risks for cleantech startups.
Foreign investors backing green tech ventures will need to reassess returns in light of shrinking incentives and stricter eligibility criteria.
No relief on visa caps or startup-specific visas
Perhaps most notably, OBBB does not address visa quotas or create any new visa categories for entrepreneurs. The much-discussed H-1B cap remains unchanged, and there is no new “Startup Visa” pathway.
International founders will have to navigate the same limited and competitive visa system they always have, complicating plans for scaling their companies in the U.S.
Increased immigration enforcement funding may slow processing
The bill dedicates $170 billion to immigration enforcement and court operations. While this funding doesn’t target startup founders specifically, it could slow down visa adjudications and increase scrutiny across the board.
According to the American Immigration Council, the bill includes:
-
$45B for new detention centers — a 265% increase, enough to detain 116,000+ people daily.
-
$29.9B to ramp up ICE deportations — tripling its current budget.
-
$46.6B for border wall construction — 3x more than Trump’s first-term spend.
-
$10B slush fund for DHS, with few restrictions on how it’s spent.
-
Immigration judges capped at 800, despite record case backlogs.
Startups reliant on timely visa approvals may face longer waits and more Requests for Evidence (RFEs), potentially delaying crucial hires or forcing costly legal interventions.
Good news for global investors: Section 899 has been scrapped.
The so-called “revenge tax”—Section 899—has been removed from the “One Big Beautiful Bill Act.”
This controversial provision would have imposed retaliatory taxes on foreign investors and companies from countries that the U.S. deemed to be imposing “unfair foreign taxes” on American firms (so, likely EU countries, Canada, the UK, and others.)
Its removal is a strategic move to avoid disrupting foreign investment in the U.S., which could have triggered job losses and broader economic fallout.
For investors, this is a welcome signal of continued stability and predictability in cross-border capital flows.
What founders and investors should do
Budget for higher immigration fees. Factor these increases into hiring and expansion plans.
- Review employee benefits. Anticipate possible gaps in public support and consider private insurance options for international hires and their families.
- Reassess cleantech investments. Understand the new incentive timelines and adjust project milestones accordingly.
- Prepare for visa delays. Apply early, anticipate extra documentation requests, and maintain legal support.
While OBBB does not overhaul the immigration system or provide new startup-specific visas, its fee hikes, benefit restrictions, and shifting energy incentives introduce new challenges.
International founders and investors will need to navigate a more complex, costly, and uncertain U.S. landscape in the years ahead.
