Visa Shake-Up as Trump's $100,000 Fee for Skilled Workers Sparks Outcry
US President Donald Trump has signed an executive order introducing a $100,000 annual fee for applicants to the H-1B visa program for skilled foreign workers. The proclamation mentions "abuse" of the program and will restrict entry unless payment is made, sparking concerns about the impact on American competitiveness in the tech sector and all industries.
The new fee is expected to have a devastating impact on small and medium-sized companies, which will struggle to afford the hefty sum. According to Tahmina Watson, a founding attorney at Watson Immigration Law, "almost everyone's going to be priced out" and this $100,000 entry point will significantly affect her clients, mostly small businesses and start-ups.
Jorge Lopez, chair of the immigration and global mobility practice group at Littler Mendelson PC, believes the fee "will put the brakes on American competitiveness in the tech sector and all industries". Some companies might consider setting up operations outside the US, though doing so can be challenging in practice.
The executive order is due to come into force on September 21, 2025, and will apply to new requests. Companies will have to pay the same amount for each applicant for six years. US Commerce Secretary Howard Lutnick said, "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." Notably, all big companies are reportedly on board with the new fee.
Since 2004, the number of H-1B applications has been capped at 85,000 per year. Previously, H-1B visas carried administrative fees totaling around $1,500. According to government statistics, Amazon was the greatest beneficiary of the program in the previous fiscal year, followed by tech giants Tata, Microsoft, Meta, Apple, and Google.
The potential for additional restrictions to the H-1B program has caused considerable concern in countries such as India, which is the largest source country for such visa applications. In response to the new fee, Amazon has advised employees with H-1B visas who are already in the US to remain there and those abroad to try to return before the deadline.
Credit – BBC News
