US President Donald Trump signed an executive order imposing a $100,000 fee on applicants to the H-1B visa programme. The order cites “abuse” of the system and blocks entry unless the full amount is paid.
Critics argue the H-1B programme harms American workers. Supporters, including billionaire Elon Musk, say it helps the US attract the best global talent.
New premium visa option for the wealthy
Trump also launched a “gold card” that accelerates visas for certain immigrants. Entry costs for this programme start at £1m.
Commerce Secretary Howard Lutnick stood with Trump in the Oval Office on Friday. “A hundred thousand dollars a year for H1-B visas, and big companies are on board,” he said. “Train graduates from American universities. Stop relying on outsiders to take our jobs.”
How the H-1B system works
Since 2004, the United States has capped H-1B applications at 85,000 per year. Administrative fees until now amounted to around $1,500.
US Citizenship and Immigration Services reported applications for the next fiscal year dropped to 359,000. This marks the lowest figure in four years.
Amazon topped the list of beneficiaries last year, followed by Tata, Microsoft, Meta, Apple and Google.
Lawyers warn of devastating consequences
Immigration lawyer Tahmina Watson cautioned that the change could cripple small firms and start-ups. “Almost everyone’s going to be priced out,” she said. “This $100,000 entry fee will devastate many.”
She explained that businesses often sponsor foreign workers because they cannot find qualified staff at home.
Critics fear loss of competitiveness
Jorge Lopez, head of the immigration and mobility practice at Littler Mendelson PC, condemned the measure. He warned it “will halt American competitiveness in tech and across industries.”
Some companies may move abroad, though establishing operations overseas can be difficult.
Trump’s evolving position on visas
The H-1B programme has long divided Trump’s allies. Some supported the system, while critics such as Steve Bannon opposed it.
In January, Trump said he understood both sides of the issue. On the campaign trail, he promised easier recruitment and even suggested green cards for graduates. “You need a pool of people for companies,” he told the All-In Podcast. “You must recruit and keep them.”
Past restrictions during his first term
In 2017, Trump signed an order that tightened oversight of H-1B applications. The move aimed to strengthen fraud detection.
Rejection rates rose to 24% in the 2018 fiscal year. Under Barack Obama they averaged 5% to 8%, and under Joe Biden between 2% and 4%.
Tech firms strongly opposed the measures, warning they endangered innovation and growth.
Global concerns and India’s response
The new fee raises alarm far beyond the US. India, the largest source of H-1B applicants, expects major disruption.
Experts warn the restrictions could reshape global tech recruitment and drive investments away from America.
