Trump Introduces $100,000 Annual Fee for H-1B Skilled Worker Visa Applicants
US President Donald Trump has signed an executive order imposing a $100,000 annual fee on companies sponsoring foreign workers under the H-1B visa program, a move that could significantly impact the US tech industry and global talent recruitment.
The order, which takes effect on September 21, will apply only to new visa applications. Under the new rules, employers will need to pay the hefty fee for each applicant every year for six years, according to US Commerce Secretary Howard Lutnick.
“The company needs to decide if the person is valuable enough to justify a $100,000 annual payment to the government, or if they should hire an American instead,” Lutnick said, adding that major corporations have been briefed and are prepared to comply.
The H-1B visa program, capped at 85,000 visas annually, allows US companies to hire foreign workers with specialized skills. Until now, associated fees totaled about $1,500 per application. Critics argue the program depresses wages for American workers, while supporters – including tech leaders like Elon Musk – insist it helps the US attract global talent essential to innovation.
White House Press Secretary Karoline Leavitt later clarified that the $100,000 fee could potentially be a one-time payment, though no official amendment to the order has been announced.
Impact on Tech Giants and Global Talent
The change is expected to hit tech giants like Amazon, Microsoft, Meta, Apple, and Google, which rely heavily on H-1B visas. Last fiscal year, Amazon was the top beneficiary, with India accounting for 71% of approved H-1B applications, followed by China at 11.7%, according to government data.
In response to the announcement, Amazon issued an internal advisory urging employees on H-1B visas already in the US to remain in the country, while those abroad were told to return immediately or avoid re-entry until further notice.
India’s largest IT trade association, Nasscom, criticized the move, saying the sudden rollout created “considerable uncertainty for businesses, professionals, and students worldwide.”
Concerns From Legal Experts and Businesses
Immigration attorney Tahmina Watson warned that the order could be devastating for smaller companies and startups.
“Almost everyone’s going to be priced out,” she told the BBC. “This $100,000 requirement will make it nearly impossible for many small and medium-sized businesses to compete for global talent.”
Jorge Lopez, a top immigration attorney, said the policy could “put the brakes on American competitiveness” in the tech sector and beyond, potentially pushing companies to shift operations outside the US.
Background and Political Context
The move marks the latest chapter in Trump’s long-standing criticism of the H-1B program. During his first term, he signed an executive order tightening scrutiny of visa applications, leading to rejection rates spiking to 24% in 2018, compared to 2-8% under previous administrations.
While campaigning, Trump at times expressed support for streamlining the process and even suggested granting green cards to college graduates, acknowledging the need for a strong pool of skilled workers. However, his administration has increasingly leaned toward restrictions, aligning with voices like former strategist Steve Bannon, who have pushed for stricter immigration controls.
The new fee comes amid a broader immigration overhaul, which also includes a proposed “gold card” fast-track visa program with fees starting at £1 million ($1.26 million) for wealthy applicants.
With the H-1B change taking effect in less than two weeks, global businesses and foreign professionals are bracing for a seismic shift in the landscape of skilled immigration to the United States.
