US President Donald Trump has signed an executive order introducing a $100,000 (£74,000) annual fee for applicants to the H-1B visa programme, which brings skilled foreign workers into the country.
The order, which cites “abuse” of the programme, will bar entry unless the fee is paid. It takes effect on 21 September and applies only to new applications, but companies will be required to pay the amount for each applicant every year for six years, according to US Commerce Secretary Howard Lutnick.
“The company needs to decide… is the person valuable enough to have a $100,000-a-year payment to the government, or they should head home, and they should go hire an American,” Lutnick said, adding that major corporations support the measure.
Trump also announced a new “gold card” visa that will fast-track certain immigrants’ applications for fees starting at £1 million.
Previously, H-1B visas carried about $1,500 in administrative fees. The number of visas has been capped at 85,000 annually since 2004, but applications have now fallen to about 359,000 — the lowest level in four years, according to US Citizenship and Immigration Services data.
Amazon was the biggest user of the programme last fiscal year, followed by Tata, Microsoft, Meta, Apple, and Google. In response to the announcement, Amazon told H-1B visa holders already in the US to stay there and urged those abroad to return before the deadline if possible. Those unable to do so were told not to attempt re-entry “until further guidance is provided.”
India, which accounted for 71% of approved H-1B visas last year, expressed concern through its trade body Nasscom, warning that the sudden one-day deadline created uncertainty for businesses, professionals, and students. China was the second-largest recipient with 11.7%.
Immigration attorney Tahmina Watson said the order could be a “nail in the coffin” for many small businesses and start-ups. “Almost everyone’s going to be priced out. This $100,000 as an entry point is going to have a devastating impact,” she said, noting that many employers already struggle to find qualified American workers.
Jorge Lopez, chair of the immigration and global mobility practice at Littler Mendelson PC, warned that the move would “put the brakes on American competitiveness in the tech sector and all industries” and may push some companies to move operations overseas.
The H-1B visa programme has long been divisive, with critics claiming it undercuts American workers while supporters argue it helps retain global talent. Trump himself has taken different positions, at one point proposing green cards for college graduates and recently saying he understood “both sides of the argument.”
In 2017, during his first term, Trump signed an order increasing scrutiny of H-1B applications, resulting in rejection rates climbing to 24% in 2018 — significantly higher than the 5-8% rate under Barack Obama and 2-4% under Joe Biden. Tech companies strongly opposed those measures.