US President Donald Trump has signed an executive order imposing a $100,000 (£74,000) annual fee on applicants for the H-1B visa programme, which brings skilled foreign workers to the United States
The order, which cites “abuse” of the programme, will restrict entry unless the payment is made. It takes effect on 21 September and applies only to new applications. However, companies must pay the fee every year for six years per applicant, US Commerce Secretary Howard Lutnick confirmed.
“The company needs to decide… is the person valuable enough to have a $100,000-a-year payment to the government, or they should head home, and they should go hire an American,” Lutnick said, noting that major corporations are supporting the move.
Trump also introduced a new “gold card” visa to fast-track certain immigrants’ applications in exchange for fees starting at £1 million.
Until now, H-1B visas carried around $1,500 in administrative fees. The number of visas has been capped at 85,000 annually since 2004, but applications have dropped to about 359,000 for the next fiscal year — the lowest in four years, according to US Citizenship and Immigration Services.
Amazon was the largest recipient of H-1B visas last fiscal year, followed by Tata, Microsoft, Meta, Apple, and Google. Following the announcement, Amazon advised its H-1B visa holders already in the US to stay put, while urging those abroad to return before the deadline. Those unable to make it back were warned not to attempt re-entry “until further guidance is provided.”
India, which accounted for 71% of H-1B visas last year, voiced concern through its trade body Nasscom, calling the sudden one-day deadline disruptive for businesses, professionals, and students. China came second with 11.7% of approvals.
Immigration attorney Tahmina Watson warned the new fee could be a “nail in the coffin” for small businesses and start-ups. “Almost everyone’s going to be priced out. This $100,000 as an entry point is going to have a devastating impact,” she said, adding that many firms already struggle to find qualified US workers.
Jorge Lopez, chair of the immigration and global mobility practice at Littler Mendelson PC, said the measure would “put the brakes on American competitiveness in the tech sector and all industries,” and predicted some companies may look to move operations overseas.
The H-1B programme has long divided Trump’s allies, with critics saying it undercuts US workers and supporters insisting it keeps top global talent in the country. Trump himself has shifted positions, once proposing green cards for college graduates and acknowledging both sides of the debate earlier this year.
During his first term in 2017, Trump signed an order increasing scrutiny of H-1B applications, which pushed rejection rates to a record 24% in 2018 — up from 5-8% under Barack Obama and 2-4% under Joe Biden. Tech companies strongly opposed those measures at the time.
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