US President Donald Trump signed an executive order that imposes a $100,000 fee on applicants to the H-1B visa programme. The order cites “abuse” of the system and blocks entry unless the full amount is paid.
Critics insist the H-1B programme undermines American jobs. Supporters, including billionaire Elon Musk, argue it helps the United States attract world-class talent.
Gold card creates new fast-track option
Trump also announced a “gold card” programme to speed up visas for certain immigrants. The scheme 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 support it,” he said. “Train graduates from American universities. Stop importing workers to take our jobs.”
Limits and fees in the programme
Since 2004, H-1B applications have been capped at 85,000 annually. Previously, applicants paid fees of about $1,500.
US Citizenship and Immigration Services reported that 359,000 people applied for the next fiscal year. That figure represents a four-year low.
Amazon gained the most visas last year, followed by Tata, Microsoft, Meta, Apple and Google.
Warnings from small businesses
Immigration lawyer Tahmina Watson cautioned that the change could crush small firms and start-ups. “Almost everyone’s going to be priced out,” she said. “This $100,000 barrier will devastate many.”
She added that companies usually turn to foreign workers only when they cannot find qualified Americans.
Concerns over competitiveness
Jorge Lopez, chair of the immigration and mobility practice at Littler Mendelson PC, condemned the fee. He warned it “will halt America’s competitiveness in tech and other industries.”
Some businesses may explore moving operations abroad, though such steps remain complex.
Trump’s mixed approach to H-1Bs
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 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.”
Past restrictions under Trump
In 2017, Trump signed an order increasing scrutiny of H-1B applications. The measure aimed to strengthen fraud detection.
Rejection rates rose to 24% in 2018. Under Barack Obama, they stood between 5% and 8%. Under Joe Biden, they dropped to 2% to 4%.
Technology firms fiercely opposed the restrictions, warning they threatened innovation and growth.
Global fallout with India at the center
The new fee carries worldwide consequences. India, the largest source of H-1B applicants, expects major disruption.
Observers warn the restrictions could reshape global hiring and drive investment away from the United States.
