Paul Krugman: The Trump Administration’s Assault on America’s Technology, Education, and Research Sectors
September 22, 2025
In a troubling development for America’s long-standing global leadership in technology, education, and research, economist and columnist Paul Krugman has sharply criticized recent policies under the Trump administration, highlighting a troubling pattern that threatens the nation’s future prosperity and innovation.
The New H-1B Visa Fee: A Blow to Talent and Innovation
At the heart of Krugman’s critique is the Trump administration’s sudden imposition of a $100,000 fee for H-1B visa holders—a program essential to the United States’ ability to attract some of the world’s best and brightest minds in science, technology, and academia. The announcement, made without warning, triggered widespread panic. Companies, universities, and foreign workers faced uncertainty; some were even advised not to leave the country out of fear they might not return. The confusion was compounded when subsequent clarifications were issued—off the official government channels, on social media platform X—dampening hopes and deepening distrust.
Beyond the immediate chaos, Krugman questions the legal authority of this move, referencing experts like Aaron Reichlin-Melnick of the American Immigration Council who doubt the White House’s right to impose such fees. Lawsuits are already in progress, but a potentially deferential Supreme Court could allow the policy to stand, further undermining the rule of law.
Why H-1B Visas Matter
Krugman stresses that H-1B visas are far more than a bureaucratic detail—they are a cornerstone of America’s economic strength. They enable foreign scientists, researchers, educators, and tech experts to work in the U.S., fueling innovation and growth across key sectors. Importantly, these workers contribute significantly to the economy by increasing GDP and tax revenue, which supports social programs like Social Security and Medicare.
Moreover, the tech industry, where most H-1B visa holders are employed, thrives on "positive externalities." The clustering of companies, mutual sharing of ideas, and specialized labor markets create a virtuous cycle of innovation and success. This is why Silicon Valley remains a global tech powerhouse—thanks to a dense, dynamic ecosystem of talent and capital.
The Broader Impact on Education and Research
Krugman draws parallels to America’s premier universities and research institutions such as MIT, Stanford, Harvard, and the National Institutes of Health. These institutions have long benefited from hiring international faculty and researchers, an advantage that contributes to breakthroughs across STEM fields.
He evokes historical precedent, noting how America’s post-World War II scientific ascendancy owed much to refugees fleeing Nazi Germany, who helped develop pivotal projects from the atomic bomb to the space program. Policies that limit immigration of highly skilled workers now risk repeating the strategic mistakes of the past.
A Misguided Policy Born of Ignorance
Krugman suggests that the new visa fee policy—potentially crafted by figures like Stephen Miller or Steve Bannon—reflects a profound misunderstanding of how the tech industry and innovation ecosystems operate. The assumption that "taking away" tech jobs from foreign workers and giving them to native-born Americans is a straightforward, zero-sum game is fundamentally flawed.
American technological dominance is not guaranteed by natural advantage. Instead, it relies on continual renewal from global talent inflows. Curtailing access to skilled immigrants threatens to unravel the intricate, self-reinforcing network that has made the U.S. the innovation leader—a change that could set off a damaging cycle of decline.
Potential for Corruption and Abuse of Power
Krugman also raises alarms about the policy’s vague provisions granting the Department of Homeland Security sweeping discretion to waive fees for select individuals, companies, or industries deemed to serve the national interest. Such latitude opens the door to abuse, favoritism, and even outright bribery, as wielding visa approvals could become a tool for political leverage rather than fair governance.
Conclusion: A Destructive Assault on American Greatness
While acknowledging that the H-1B program is imperfect and could benefit from sensible reforms, Krugman condemns the Trump administration’s punitive approach as purely destructive. By undermining a vital pillar of America’s innovation-driven economy, these policies threaten not only immediate job growth but the very fabric of the nation’s long-term competitiveness.
In his words, the administration’s actions jeopardize “yet another pillar supporting American greatness” and risk dismantling the very institutions and policies that have historically made the United States a beacon for talent, research, and economic dynamism.
Paul Krugman’s detailed analysis calls attention to the urgent need for policies that support, rather than hinder, the flow of global talent—highlighting the risks of political agendas that disregard the delicate ecosystems underlying the country’s economic and technological leadership.
