US President Donald Trump signed an executive order adding a $100,000 fee for applicants to the H-1B visa programme. The order alleges widespread “abuse” of the system and denies entry unless applicants pay the full amount.
Critics argue the H-1B programme harms American workers. Supporters, including billionaire Elon Musk, claim it helps the United States secure top international talent.
Gold card offers a wealthy shortcut
Trump also launched a “gold card” that speeds up visas for certain immigrants. The programme starts with payments of at least £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 importing workers to take our jobs.”
How the H-1B system operates
Since 2004, H-1B applications have been capped at 85,000 per year. Until now, fees for applicants reached about $1,500.
US Citizenship and Immigration Services reported 359,000 applications for the next fiscal year. That figure marks a four-year low.
Amazon benefited most from the programme last year, followed by Tata, Microsoft, Meta, Apple and Google.
Smaller firms feel the pressure
Immigration lawyer Tahmina Watson warned that the fee will cripple many of her clients. Most are small businesses and start-ups. “Almost everyone’s going to be priced out,” she said. “This $100,000 barrier will devastate many.”
She added that companies typically hire foreign workers only when no suitable US candidates are available.
Critics fear damage to US industries
Jorge Lopez, chair of the immigration and mobility practice at Littler Mendelson PC, criticised the measure. He warned the fee “will block America’s competitiveness in tech and other industries.”
Some companies might consider moving operations abroad, though such steps often remain difficult.
Trump’s fluctuating stance on visas
Trump’s circle has long been divided over the H-1B programme. Some favoured it, while critics like Steve Bannon opposed it.
In January, Trump admitted he understood both sides of the debate. During his campaign, he even 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 during Trump’s presidency
In 2017, Trump signed an order that tightened H-1B scrutiny. The measure aimed to detect fraud more effectively.
Rejection rates climbed to 24% in 2018. Under Barack Obama, they stood between 5% and 8%. Under Joe Biden, they fell to 2% to 4%.
Technology firms strongly opposed Trump’s measures, warning they endangered growth and innovation.
India faces serious consequences
The new fee has far-reaching effects abroad. India, the largest supplier of H-1B applicants, expects heavy disruption.
Experts caution that the changes may reshape global hiring patterns and push investment away from the United States.
