US President Donald Trump signed an executive order imposing a $100,000 fee for H-1B visa applicants. The order cites “abuse” of the system and blocks entry unless the fee is paid.
Critics say the H-1B programme threatens American jobs. Supporters, including billionaire Elon Musk, argue it helps the US attract top global talent.
Gold card offers fast-track for wealthy immigrants
Trump also introduced a “gold card” programme to accelerate 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 hiring outsiders to take our jobs.”
H-1B programme 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 severe 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 crush many.”
She added that companies typically 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 warned 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 visa policies
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. 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.”
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.
Global impact with India most affected
The new fee has worldwide consequences. India, the largest source of H-1B applicants, expects major disruption.
Analysts warn the restrictions could reshape international hiring and divert investment away from the United States.
