US President Donald Trump signed an executive order imposing a $100,000 fee on H-1B visa applicants. The order claims the programme suffers from “abuse” and denies entry unless the full fee is paid.
Critics argue the H-1B programme undermines American jobs. Supporters, including billionaire Elon Musk, say it allows the US to attract top international talent.
Gold card offers fast-track for wealthy immigrants
Trump also unveiled a “gold card” programme to accelerate visas for selected immigrants. Entry fees begin at £1m.
Commerce Secretary Howard Lutnick joined Trump in the Oval Office on Friday. “A hundred thousand dollars a year for H1-B visas, and major companies are on board,” he said. “Train graduates from American universities. Stop importing workers to take our jobs.”
H-1B limits and fees
Since 2004, the programme has capped H-1B applications at 85,000 per year. Previously, administrative fees totaled about $1,500.
US Citizenship and Immigration Services reported applications for the next fiscal year fell to 359,000, a four-year low.
Amazon received the most approvals last year, followed by Tata, Microsoft, Meta, Apple and Google.
Small businesses warn of major impact
Immigration lawyer Tahmina Watson said the fee could devastate small firms and start-ups. “Almost everyone’s going to be priced out,” she said. “This $100,000 entry cost will destroy many.”
She added that companies usually hire foreign workers only when they cannot find qualified Americans.
Experts warn of US competitiveness risks
Jorge Lopez, chair of the immigration and mobility practice at Littler Mendelson PC, criticised the order. He said it “will slow America’s competitiveness in tech and other industries.”
Some companies may consider relocating abroad, though such moves remain challenging.
Trump’s evolving stance on H-1Bs
The visa debate has long divided Trump’s allies. Some supported it, while critics like Steve Bannon opposed it.
In January, Trump said he understood both sides of the debate. During his campaign, he proposed 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 under Trump
In 2017, Trump signed an order increasing scrutiny of H-1B applications to prevent fraud.
Rejection rates rose to 24% in 2018. Under Barack Obama, they ranged from 5% to 8%, and under Joe Biden, from 2% to 4%.
Tech companies strongly opposed the restrictions, warning they threatened innovation and growth.
India faces significant disruption
The new fee has global consequences. India, the largest source of H-1B applicants, expects major disruption.
Analysts warn the restrictions could reshape global hiring and divert investment away from the United States.
