US President Donald Trump signed an executive order imposing a $100,000 fee on H-1B visa applicants. The order claims the programme faces “abuse” and denies entry unless the fee is paid.
Critics argue the H-1B system threatens American jobs. Supporters, including billionaire Elon Musk, say it helps the US attract top international talent.
Gold card introduces fast-track option 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 bringing in workers to take our jobs.”
Limits and fees on the H-1B system
Since 2004, the programme has capped H-1B applications at 85,000 per year. Previously, applicants paid around $1,500 in administrative fees.
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 often sponsor 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 order. He warned it “will slow America’s competitiveness in tech and other industries.”
Some companies may consider relocating abroad, though such moves remain difficult.
Trump’s changing position on visas
The H-1B debate has long divided Trump’s allies. Some supported it, 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.”
Previous restrictions under Trump
In 2017, Trump signed an order tightening scrutiny of H-1B applications to prevent fraud.
Rejections rose to 24% in 2018. Under Barack Obama, rates ranged from 5% to 8%, and under Joe Biden, from 2% to 4%.
Tech firms strongly opposed the restrictions, warning they threatened innovation and growth.
India faces significant consequences
The new fee has global repercussions. 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.
