Trump Proposes Hefty Fee for Favored H-1B Visas in Tech Industry, Amounting to $100,000
In a move that could potentially have major repercussions for the tech industry, US President Donald Trump has ordered an annual $100,000 fee for H-1B skilled worker visas. The new order, implemented during Trump's second term, is aimed at reforming the system that allows companies to sponsor foreign workers with specialized skills to work in the United States for up to six years.
The order was announced alongside the introduction of a $1 million "gold card" residency program. This program offers an expedited pathway to US residency for individuals paying $1 million, or for corporate sponsors paying $2 million.
Trump believes the new order will be "tremendously successful." However, concerns have been raised by tech entrepreneurs, including Elon Musk, who argue that the United States does not have enough homegrown talent to fill important tech sector job vacancies. They warn against targeting H-1B visas, stating that these visas are crucial for large technology firms that rely on foreign workers, particularly those from India.
India accounts for around three-quarters of the recipients of H-1B visas. The number of H-1B visa applications has risen sharply in recent years, with a peak in approvals in 2022 under Democratic president Joe Biden. In contrast, the peak in rejections was recorded in 2018, during Trump's first term in the White House.
The order expires in a year, with the possibility of extension by Trump. Commerce Secretary Howard Lutnick stated that all big companies are on board with the new measures. The exact number of companies likely to be exempted by the Secretary of Homeland Security from the $100,000 fee charge on H-1B worker visas is not specified in the available sources; however, exemptions are expected only for petitions filed in the "national interest," particularly medical professionals, and details on criteria and procedures are still pending.
The United States awards 85,000 H-1B visas per year on a lottery system. In 2024, the country approved approximately 400,000 H-1B visas, two-thirds of which were renewals. As the new fee takes effect starting Sunday, the tech industry and the global workforce await the impact of this new policy on the future of skilled worker immigration in the United States.
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