US President Donald Trump has signed an executive order imposing a $100,000 annual fee on applicants to the H-1B visa programme, which allows skilled foreign workers to take jobs in the United States.
The order, set to take effect on September 21, applies only to new visa requests. However, companies would be required to pay the same amount for each sponsored worker for up to six years, Commerce Secretary Howard Lutnick said.
“The company needs to decide — is the person valuable enough to have a $100,000-a-year payment to the government, or should they hire an American,” Lutnick explained, adding that large corporations supported the move.
The H-1B programme, capped at 85,000 applications annually, has until now required administrative fees of roughly $1,500. Data from US Citizenship and Immigration Services shows applications fell to about 359,000 this year, the lowest in four years.
Amazon, the largest beneficiary of H-1B visas last year, has advised employees already in the US to remain there. Those abroad were urged to return before the order takes effect, according to an internal memo reported by Business Insider.
The order has sparked sharp criticism from immigration lawyers and business leaders. Tahmina Watson, founding attorney at Watson Immigration Law, said the policy could be “a nail in the coffin” for small businesses that rely on foreign talent. “Almost everyone’s going to be priced out,” she told the BBC.
Jorge Lopez, chair of the immigration and global mobility practice at Littler Mendelson PC, warned the fee could damage US competitiveness. “This will put the brakes on American competitiveness in the tech sector and all industries,” he said, noting that some companies may consider moving operations abroad.
The decision has heightened anxieties in countries such as India, the largest source of H-1B applicants. Tech firms including Microsoft, Meta, Apple, and Google are also among major beneficiaries of the programme.
Trump also announced a new “gold card” fast-track visa scheme for select immigrants, with fees starting at £1 million.
The H-1B debate has long divided Trump’s allies. While critics argue the programme undercuts American workers, supporters — including Elon Musk — say it is vital for attracting global talent.
