US President Donald Trump signed an executive order that adds a $100,000 fee for H-1B visa applicants. The order claims the system suffers from “abuse” 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 global talent.
Gold card introduces premium fast-track
Trump also unveiled a “gold card” programme to fast-track visas for selected immigrants. 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 caps and fees explained
Since 2004, the programme has capped H-1B applications at 85,000 per year. Until now, administrative fees totaled around $1,500.
US Citizenship and Immigration Services reported that applications for the next fiscal year fell to 359,000, a four-year low.
Amazon secured the most approvals last year, followed by Tata, Microsoft, Meta, Apple and Google.
Small businesses warn of devastating impact
Immigration lawyer Tahmina Watson said the fee could cripple small firms and start-ups. “Almost everyone’s going to be priced out,” she said. “This $100,000 entry point will devastate many.”
She added that companies usually sponsor foreign workers only when they cannot find qualified Americans.
Concerns over US competitiveness
Jorge Lopez, chair of the immigration and mobility practice at Littler Mendelson PC, criticised the order. He warned it “will stall America’s competitiveness in tech and other industries.”
Some companies may consider relocating abroad, though such moves remain complex.
Trump’s shifting stance on H-1Bs
The visa 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 argument. On the campaign trail, 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.”
Previous restrictions during Trump’s term
In 2017, Trump signed an order tightening scrutiny of H-1B applications to prevent fraud.
Rejections rose to 24% in the 2018 fiscal year. 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 and India at risk
The new fee has worldwide consequences. India, the largest source of H-1B applicants, expects major disruption.
Analysts warn the rules could reshape global hiring patterns and divert investment away from the United States.
