Former US President Donald Trump signed a proclamation on Friday imposing an annual $100,000 fee on H-1B visa applications, a move that could profoundly impact America’s technology industry, which depends heavily on skilled workers from India and China.
Announcing the measure at the White House, US commerce secretary Howard Lutnick said major corporations had already been briefed. “A hundred-thousand dollars a year for H-1B visas, and all the big companies are on board,” Lutnick said, adding that firms should focus on training American graduates instead of bringing in foreign workers.
The H-1B program, which offers 65,000 visas annually plus 20,000 more for advanced degree holders, is widely used by tech giants like Amazon, Microsoft, and Meta, each securing thousands of approvals this year. Two-thirds of H-1B roles are computer-related, but the visa is also used in engineering, education, and healthcare.
Critics of the program argue that it depresses wages for US workers, while supporters—including Tesla CEO Elon Musk, once an H-1B holder himself—insist the program fills critical talent shortages and keeps America competitive. Venture capitalist Deedy Das warned that the new fee “creates a disincentive to attract the world’s smartest talent.”
Immigration experts, however, questioned whether Trump has the legal authority to impose such a steep fee, noting that visa costs are typically limited to recovering processing expenses.
The Guardian reported that the policy, if enforced, could price out smaller tech firms and startups, forcing companies either to absorb massive costs or cut back on foreign hires.
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