US President Donald Trump has issued an executive order imposing a hefty $100,000 (£74,000) yearly charge on applicants to the H-1B visa programme, which allows skilled foreign professionals to work in the United States.
The order, citing alleged “abuse” of the system, states that entry will be restricted unless the fee is paid.
Opponents of the H-1B system have long argued that it reduces opportunities for American workers, while supporters — including billionaire Elon Musk — insist the visas are vital for bringing global expertise to the US.
In a separate directive, Trump announced a new fast-track immigration scheme dubbed the “gold card,” offering priority visas in exchange for payments beginning at £1 million.
The new H-1B fee policy is scheduled to take effect on September 21 and will only apply to new applications. However, employers would be required to pay the fee for each sponsored worker for up to six years, according to US Commerce Secretary Howard Lutnick.
“The company has to decide — is the employee valuable enough to justify $100,000 a year to the government, or should they hire an American instead?” Lutnick said, noting that major corporations have already expressed support.
Since 2004, the US has capped H-1B visa applications at 85,000 annually. Until now, associated fees amounted to about $1,500.
Recent figures from the US Citizenship and Immigration Services (USCIS) show applications for the upcoming fiscal year dropped to 359,000 — the lowest level in four years. Amazon was the top beneficiary of the programme in the previous year, followed by Tata, Microsoft, Meta, Apple, and Google.
Immigration attorney Tahmina Watson, founder of Watson Immigration Law, warned the new order could be devastating for small businesses and start-ups.
“Almost no one can afford this. A $100,000 entry cost will knock out smaller employers who already struggle to find skilled workers,” she said.
Jorge Lopez, who leads the immigration and global mobility practice at Littler Mendelson PC, added that the policy could severely damage America’s competitiveness in technology and other industries. Some firms may even consider moving operations abroad, though that poses its own challenges, he noted.
Debates over the H-1B system have repeatedly divided Trump’s allies, with advocates of the visas clashing with hardliners such as former strategist Steve Bannon.
Earlier this year, Trump told reporters he recognized “both sides” of the argument. On the campaign trail, he had even floated ideas to ease pathways for skilled workers, including the possibility of offering green cards to US college graduates.
“You need a pool of talented people for companies to thrive,” Trump told the All-In Podcast, stressing the importance of attracting and retaining skilled workers.
During his first term in 2017, Trump introduced measures to tighten oversight of the H-1B programme. Denial rates subsequently surged to 24% in 2018 — far higher than the 5–8% levels seen under Barack Obama and the 2–4% rates under Joe Biden.
The tech sector strongly opposed those restrictions, warning they would stifle innovation. Concerns remain especially high in countries such as India, which consistently accounts for the majority of H-1B visa applications.
