In a dramatic shake-up to America’s immigration system, President Donald Trump has signed a proclamation requiring companies to pay a staggering H-1B visa fee of $100,000 per year for each worker they sponsor.
The move, announced Friday, has sparked heated debate among business leaders, analysts, and immigration advocates.
The new policy means employers sponsoring foreign workers under the H-1B program will face a $100,000 charge annually, with fees extending across the visa’s initial three-year period. That adds up to $300,000 per worker. Trump defended the move, saying, “The main thing is, we’re going to have great people coming in, and they’re going to be paying.”
At the same time, the administration unveiled a separate “gold card” visa, offering permanent U.S. residency to individuals willing to pay $1 million.
Impact on H-1B Program
H-1B visas, created in 1990, allow U.S. companies to hire foreign professionals with specialized skills such as engineers, scientists, and programmers. Roughly 85,000 visas are granted annually, most often through a lottery system.
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Commerce Secretary Howard Lutnick explained the steep H-1B visa fee was intended to push companies to invest in American graduates instead of relying on overseas workers. “If you’re going to train somebody, train one of the recent graduates from our great universities. Stop bringing in people to take our jobs,” Lutnick said.
Supporters argue the measure will ensure only the most skilled workers are brought to the U.S., while critics warn it could cripple innovation and force companies to move high-value jobs overseas.
Tech leaders and venture capitalists expressed concern that the policy could undermine America’s competitive edge. “Adding new fees creates disincentive to attract the world’s smartest talent,” said Deedy Das of Menlo Ventures. Analysts cautioned that such policies may weaken U.S. leadership in areas like artificial intelligence, especially against rivals like China.
Immigration experts have also questioned whether the administration has the authority to impose such massive fees without Congress. Under current law, visa fees are only meant to cover processing costs, which traditionally amount to just a few thousand dollars.
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Aaron Reichlin-Melnick of the American Immigration Council said, “Congress has only authorized the government to set fees to recover the cost of adjudicating an application.”
Who Uses H-1B the Most?
Major U.S. tech firms are the largest beneficiaries of the program. Amazon topped the list this year with over 10,000 H-1B approvals, followed by Tata Consultancy, Microsoft, Apple, and Google. California remains the state with the highest number of H-1B workers, while India dominates as the biggest source country, accounting for 71% of approvals last year.
While the White House insists the plan will protect American workers, critics argue the long-term effect could be devastating to U.S. innovation and competitiveness. By dramatically increasing costs, Trump’s latest immigration order risks pricing out smaller tech firms and startups while taxing away America’s innovation advantage.
