US President Donald Trump signed an executive order that adds a $100,000 fee for applicants to the H-1B visa programme. The order accuses the system of “abuse” and blocks entry unless the new sum is paid.
Critics argue the H-1B programme undermines American workers. Supporters, including billionaire Elon Musk, insist it allows the US to attract top global talent.
Gold card offers fast-track entry
Trump also launched a “gold card” designed to speed up visas for certain immigrants. Entry into the scheme begins at £1m.
Commerce Secretary Howard Lutnick stood beside 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, the US has capped H-1B applications at 85,000 each year. Previously, applicants faced administrative fees of about $1,500.
US Citizenship and Immigration Services reported applications for the next fiscal year dropped to 359,000. This represents a four-year low.
Amazon received the highest number of H-1B approvals last year, followed by Tata, Microsoft, Meta, Apple and Google.
Concerns raised by small businesses
Immigration lawyer Tahmina Watson warned the new fee could devastate her clients. Many of them are small businesses and start-ups. “Almost everyone’s going to be priced out,” she said. “This $100,000 entry point will crush many.”
She added that companies sponsor foreign workers only when they cannot find qualified Americans.
Critics warn of lost competitiveness
Jorge Lopez, chair of the immigration and mobility practice at Littler Mendelson PC, strongly criticised the order. He warned it “will stall American competitiveness in tech and across industries.”
Some firms may consider moving operations abroad, though such steps are often difficult in practice.
Trump’s changing approach to visas
Trump’s circle has long been divided over H-1B visas. Some supported the programme, while critics like Steve Bannon opposed it.
In January, Trump said he understood both sides of the issue. Earlier, while campaigning, he promised to ease recruitment and 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 his presidency
In 2017, Trump signed an order that increased scrutiny of H-1B applications. The measure aimed to improve fraud detection.
Rejections then rose to 24% in the 2018 fiscal year. Under Barack Obama, rejection rates ranged between 5% and 8%, and under Joe Biden they averaged 2% to 4%.
Tech companies pushed back hard, warning the restrictions endangered growth and innovation.
Global concern with India most affected
The impact of the new fee reaches far beyond the United States. India, the largest source of H-1B applicants, fears severe disruption.
Analysts warn the restrictions could alter global hiring strategies and divert investment away from America.
