Former US President Donald Trump signed a new proclamation on Friday introducing a hefty $100,000 annual fee on H-1B visas. The move could deal a major blow to America’s tech industry, which has long relied on highly skilled workers from countries like India and China.
What the New Rule Means
US Commerce Secretary Howard Lutnick confirmed the decision, saying big companies had already been briefed and were “on board.” He framed the policy as a push to prioritize American graduates for jobs:
“Train Americans. Stop bringing in people to take our jobs,” Lutnick said at the Oval Office event.
The proclamation directly targets the H-1B program, which provides 65,000 visas every year, plus an additional 20,000 for workers with advanced degrees. Most of these visas go to professionals in tech, engineering, healthcare, and education.
Why It Matters
Big tech companies are the largest users of H-1B visas. In the first half of 2025 alone:
- Amazon had over 10,000 approvals
- Microsoft and Meta each secured over 5,000 approvals
Critics of the program argue it undercuts wages and sidelines American workers. But supporters—including Elon Musk, who once held an H-1B himself—say the visas help fill critical talent gaps and keep US companies competitive.
Pushback and Concerns
Immigration experts are already questioning the legality of Trump’s move.
Aaron Reichlin-Melnick, from the American Immigration Council, bluntly stated:
“The president has literally zero legal authority to impose a $100,000 fee on visas. None. Zip. Zilch.”
Currently, H-1B applicants pay a much smaller lottery fee, with employers covering most of the costs, which usually total a few thousand dollars—not six figures.
Venture capital partner Deedy Das warned that such high costs would discourage top global talent from coming to the US:
“If the US stops attracting the best talent, it drastically reduces its ability to innovate and grow the economy.”
Wider Context
This is the latest in Trump’s ongoing efforts to restrict legal immigration. Recent actions include:
- A pilot program requiring bonds of up to $15,000 for tourist and business visas.
- A June travel ban on citizens from 19 nations.
- Earlier attempts to reshape the H-1B program, many of which were blocked in court.
For startups and smaller tech firms, the new $100,000 fee could make it nearly impossible to hire foreign workers, leaving them at a disadvantage compared to larger corporations.
Whether this rule will survive legal challenges remains to be seen—but it has already sparked heated debate across the tech industry, immigration circles, and political arenas.
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