US President Donald Trump has signed an executive order introducing a $100,000 (£74,000) annual fee for applicants to the H-1B visa programme for skilled foreign workers.
The order, which takes effect on 21 September, cites “abuse” of the programme and restricts entry unless the fee is paid. The measure applies only to new applications, but companies will have to pay the same amount for each applicant for six years, US Commerce Secretary Howard Lutnick explained.
“The company needs to decide… is the person valuable enough to have a $100,000-a-year payment to the government, or they should head home, and they should go hire an American,” Lutnick said. “All of the big companies are on board.”
Until now, H-1B visas have carried administrative fees totalling around $1,500. Applications have been capped at 85,000 annually since 2004, but filings have dropped to about 359,000 for the next fiscal year, the lowest in four years, according to US Citizenship and Immigration Services (USCIS).
The new order has provoked strong reactions. Immigration lawyer Tahmina Watson warned it could be a “nail in the coffin” for many small businesses and start-ups, saying: “Almost everyone’s going to be priced out. This $100,000 as an entry point is going to have a devastating impact.”
Jorge Lopez, chair of immigration and global mobility at Littler Mendelson PC, also criticised the measure, cautioning that it “will put the brakes on American competitiveness in the tech sector and all industries.” He added that some companies may look to expand outside the US.
Tech giants such as Amazon, Tata, Microsoft, Meta, Apple and Google have been among the largest beneficiaries of the H-1B programme, with critics arguing the visas undercut American workers, while supporters including Elon Musk, say they help the US attract top global talent.
In another order, Trump introduced a “gold card” visa to fast-track immigration for select applicants, with fees starting at £1m.
The debate over H-1Bs has long divided Trump’s allies. While on the campaign trail, Trump promised to ease the process of attracting foreign talent, even proposing green cards for college graduates. However, earlier in his presidency, he signed orders tightening scrutiny of H-1B applications, with rejections peaking at 24% in 2018.
Concerns are particularly high in India, the largest source of H-1B applications, where businesses fear the new restrictions will further limit opportunities for skilled professionals seeking to work in the US.
Faridah Abdulkadiri
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