US President Donald Trump signed an executive order introducing a $100,000 fee for H-1B visa applicants. The order cites “abuse” of the system and blocks entry unless the full fee is paid.
Critics argue the H-1B programme undermines American jobs. Supporters, including billionaire Elon Musk, say it helps the US attract top global talent.
Gold card offers fast-track entry for wealthy applicants
Trump also unveiled a “gold card” programme to speed up visas for certain immigrants. Entry fees start at £1m.
Commerce Secretary Howard Lutnick joined Trump in the Oval Office on Friday. “A hundred thousand dollars a year for H1-B visas, and major companies support it,” he said. “Train graduates from American universities. Stop hiring outsiders to take our jobs.”
How the H-1B system works
Since 2004, H-1B applications have been capped at 85,000 per year. Previously, administrative fees totaled around $1,500.
US Citizenship and Immigration Services reported applications for the next fiscal year dropped to 359,000, the lowest level in four years.
Amazon received the most approvals last year, followed by Tata, Microsoft, Meta, Apple and Google.
Small businesses warn of severe impact
Immigration lawyer Tahmina Watson said the fee could devastate small businesses and start-ups. “Almost everyone’s going to be priced out,” she said. “This $100,000 entry fee will cripple many.”
She added that companies usually sponsor foreign workers only when they cannot find qualified Americans.
Experts caution on US competitiveness
Jorge Lopez, chair of the immigration and mobility practice at Littler Mendelson PC, criticised the order. He warned it “will stall America’s competitiveness in tech and other industries.”
Some companies may explore moving operations abroad, though such steps remain difficult in practice.
Trump’s evolving position on visas
The H-1B debate has long divided Trump’s allies. Some supported the programme, while critics such as Steve Bannon opposed it.
In January, Trump said he understood both sides of the argument. During his campaign, he 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.”
Earlier restrictions under Trump’s presidency
In 2017, Trump signed an order tightening scrutiny of H-1B applications. The measure aimed to improve fraud detection.
Rejections rose to 24% in 2018. Under Barack Obama, rates ranged from 5% to 8%, and under Joe Biden, from 2% to 4%.
Tech companies strongly opposed the restrictions, warning they threatened innovation and growth.
India faces major consequences
The new fee has global impact. India, the largest source of H-1B applicants, expects significant disruption.
Analysts warn the restrictions could reshape international hiring and redirect investment away from the United States.
