U.S. President Donald Trump has signed an executive order introducing a $100,000 (£74,000) annual fee for applicants to the H-1B visa programme, dramatically increasing the cost of bringing skilled foreign workers to the United States.
The proclamation, issued Friday, cites alleged “abuse” of the H-1B system and warns that entry will be restricted unless payment is made. Trump, joined in the Oval Office by Commerce Secretary Howard Lutnick, defended the move:
“A hundred thousand dollars a year for H-1B visas, and all of the big companies are on board,” he said. “Train Americans. Stop bringing in people to take our jobs.”
The H-1B programme, capped at 85,000 visas annually since 2004, has historically carried administrative fees totaling about $1,500. The jump to $100,000 is the most dramatic overhaul since its creation, and applications had already fallen to a four-year low of 359,000 for the coming fiscal year, according to U.S. Citizenship and Immigration Services.
The new order also establishes a “gold card” visa fast-track for select immigrants willing to pay fees starting at £1 million.
Supporters and Critics Clash
Critics argue H-1B visas undercut U.S. workers, while supporters—including Elon Musk—say they allow the U.S. to attract top global talent. Tahmina Watson, an immigration attorney, called the new fee “a nail in the coffin” for small businesses and startups:
“Almost everyone’s going to be priced out… This will have a devastating impact,” she said, noting that many employers sponsor foreign workers only after failing to find qualified Americans.
Jorge Lopez, chair of Littler Mendelson’s immigration practice, warned the fee “will put the brakes on American competitiveness in the tech sector and all industries,” potentially pushing companies to shift operations overseas.
The greatest beneficiaries of H-1B visas last year included Amazon, Tata Consultancy Services, Microsoft, Meta, Apple, and Google. India, by far the largest source of applicants, is expected to be heavily affected.
Political Context
Trump has sent mixed signals on H-1Bs over the years. While courting the tech industry during past campaigns, he proposed easier paths to green cards for college graduates. But his first term saw tighter scrutiny and record-high rejection rates for H-1B applications, drawing strong criticism from Silicon Valley.
The new fee is expected to trigger legal challenges and reignite debate within Trump’s own camp, where factions have long been divided between protecting U.S. workers and maintaining America’s competitive edge in technology and innovation.
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