US President Donald Trump signed an executive order imposing a $100,000 fee on H-1B visa applicants. The order cites “abuse” of the system and blocks entry unless the fee is paid.
Critics argue the H-1B programme threatens American jobs. Supporters, including billionaire Elon Musk, say it allows the US to attract top international talent.
Gold card creates premium fast-track option
Trump also unveiled a “gold card” programme to speed up visas for selected immigrants. Entry fees start 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 bringing in workers to take our jobs.”
H-1B limits and costs explained
Since 2004, the programme has capped H-1B applications at 85,000 per year. Previously, administrative fees totaled around $1,500.
US Citizenship and Immigration Services reported applications for the next fiscal year dropped 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 severe consequences
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 crush many.”
She added that companies typically hire foreign workers only when they cannot find qualified Americans.
Experts warn of declining US competitiveness
Jorge Lopez, chair of the immigration and mobility practice at Littler Mendelson PC, criticised the measure. 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 shifting stance on visas
The H-1B debate has long divided Trump’s allies. Some supported the programme, while critics such as Steve Bannon opposed it.
In January, Trump said he understood both sides of the debate. On the campaign trail, 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.”
Earlier restrictions under Trump
In 2017, Trump signed an order tightening scrutiny of H-1B applications to prevent fraud.
Rejection rates rose to 24% in 2018. Under Barack Obama, rates 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 braces for major disruption
The new fee has global consequences. India, the largest source of H-1B applicants, expects significant disruption.
Analysts warn the restrictions could reshape international hiring and redirect investment away from the United States.
