Trump Imposes $100,000 Fee on H-1B Visas in Blow to Tech Sector

U.S. President Donald Trump signed an executive order imposing a $100,000 fee on H-1B visa applications in an effort to curb their excessive use. 

This move could negatively impact the technology sector, which heavily relies on skilled foreign workers, particularly from India and China. The decision applies to new applicants and is expected to face legal challenges.

On Friday, U.S. President Donald Trump signed an executive order that mandates a $100,000 fee on H-1B visa applications in an attempt to limit the excessive use of these visas. The U.S. government will require companies to pay $100,000 annually for each H-1B work visa, a move that could significantly affect the technology sector, which relies heavily on skilled workers, particularly from India and China.

The H-1B visa was designed to help companies attract foreign skilled workers to fill jobs that are difficult to staff with U.S. workers. The move to raise the fee is aimed at limiting its overuse, particularly in the tech sector, and targeting applicants from specific countries like India, which has seen high numbers of H-1B holders.

The fee increase will apply only to new applicants and is scheduled to take effect on Sunday. However, legal challenges are expected to follow, and the U.S. Citizenship and Immigration Services (USCIS) has issued a memorandum confirming that the new fee will apply to new applicants only.

The U.S. Congress created the H-1B visa program in 1990, anticipating a shortage of workers in specialized fields. When President George H.W. Bush signed the law, he stated that the program would encourage "the immigration of exceptionally talented people, such as scientists, engineers, and educators."

Employers have used the H-1B visa (which is valid for three years and can be extended) to hire foreign workers with specialized skills, especially in the fields of science, technology, engineering, and mathematics (STEM), to fill jobs where qualified U.S. workers are in short supply.

Employers file the visa applications on behalf of the foreign workers they wish to hire, specifying the job and the qualifications of the individual. While the H-1B visa is temporary, many employers eventually sponsor the workers for a green card, putting them on the path to U.S. citizenship.

However, there has been confusion regarding the implementation of the new fees. U.S. Secretary of Commerce Howard Luthnick mentioned on Friday that the $100,000 fee would be an annual charge, to be paid by the U.S. company employing the foreign worker. But the next day, White House Press Secretary Carolyn Levitt clarified via social media that the fee would be a one-time charge.

Congress allocates 65,000 H-1B visas annually for workers with at least a bachelor's degree or equivalent, and an additional 20,000 for those with a master's degree or higher.

The majority of H-1B holders are software engineers, programmers, and workers in the technology industry. Major companies such as Amazon, Google, Meta (Facebook), Microsoft, Apple, and IBM were among the top employers of H-1B visa holders last year, according to USCIS. However, H-1B holders also work in other fields, including education, healthcare, and manufacturing.

To be eligible for an H-1B visa, the applicant must:

Hold at least a bachelor’s degree or its equivalent in the specific field required for the profession.

Have a formal job offer from a U.S. company or institution.

Have relevant work experience in a specialized field, such as engineering, mathematics, science, or medicine.

Demonstrate specialized education, training, and/or experience that is equivalent to a U.S. bachelor’s degree or higher in the specialized field.