US President Donald Trump signed an executive order imposing a $100,000 fee on H-1B visa applicants. The order cites “abuse” of the system and denies 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 elite international talent.
Gold card offers fast-track for the wealthy
Trump also introduced a “gold card” programme to speed up visas for certain immigrants. The scheme starts with payments of at least £1m.
Commerce Secretary Howard Lutnick appeared with 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.”
How H-1B caps and fees work
Since 2004, the H-1B programme has capped applications at 85,000 per year. Previously, applicants paid administrative fees of around $1,500.
US Citizenship and Immigration Services reported that applications for the next fiscal year fell to 359,000, the lowest in four years.
Amazon received the highest number of approvals last year, followed by Tata, Microsoft, Meta, Apple and Google.
Small businesses warn of collapse
Immigration lawyer Tahmina Watson said the fee could devastate her clients, most of whom are start-ups or small businesses. “Almost everyone’s going to be priced out,” she said. “This $100,000 barrier will destroy many.”
She added that companies typically hire foreign workers only when they cannot find qualified Americans.
Experts warn of lost competitiveness
Jorge Lopez, chair of the immigration and mobility practice at Littler Mendelson PC, criticised the measure. He warned it “will freeze America’s competitiveness in tech and other industries.”
Some companies may consider relocating abroad, though such moves are often difficult.
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 issue. 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.”
Restrictions under Trump’s first term
In 2017, Trump signed an order tightening scrutiny of H-1B applications to prevent fraud.
Rejection rates rose to 24% in the 2018 fiscal year. Under Barack Obama, they averaged 5% to 8%, and under Joe Biden, 2% to 4%.
Tech firms criticised the restrictions, warning they threatened growth and innovation.
India braces for impact
The new fee carries global 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.
