On Friday, President Donald Trump signed a proclamation introducing a hefty $100,000 fee for each H-1B visa application. This new development is poised to significantly impact the tech industry and employers who rely on highly skilled foreign talent. The White House justified this move by stating that the "misuse of the H-1B pathway has displaced American workers," and thus, entry under the program will be curtailed unless accompanied by the payment.
The H-1B visa program annually offers 85,000 slots—65,000 for the general category and an additional 20,000 for postgraduates. It is a work visa valid for three years, with an extension option for another three years. Historically, the tech sector has been a major beneficiary of the H-1B program, arguing that it attracts talent crucial for innovation. However, critics argue that it undermines local employment opportunities.
The imposition of the $100,000 fee would particularly affect employers, including tech giants like Amazon, IBM, Microsoft, and Google, which have heavily relied on this visa program to bring in foreign workers. Notably, Amazon received the highest number of H-1B visas in 2024, according to the Department of Labor. The administration claims that this reform encourages the hiring and training of American workers over foreign labor.
In recent weeks, Howard Lutnick, the Secretary of Commerce, has openly criticized the H-1B system. In official communications reported by the media, he advocated for stricter requirements for companies utilizing the program. "This will ensure that the individuals brought in are truly highly qualified and not easily replaceable by American workers. It will protect American workers while ensuring that companies have a pathway to hire truly extraordinary individuals and bring them to the United States," a White House adviser told the press.
Understanding the Impact of Trump's H-1B Visa Fee
What is the new fee for H-1B visa applications?
The new fee for each H-1B visa application is $100,000, as introduced by President Donald Trump's proclamation.
How will this fee affect tech companies?
Tech companies, which rely heavily on the H-1B visa program to recruit skilled foreign workers, will face increased costs due to the new fee, potentially impacting their hiring strategies.
Why has the Trump administration implemented this fee?
The administration argues that the fee will prevent the displacement of American workers and promote the hiring and training of local talent instead of relying on foreign labor.