By Chidimma Okwara, The LeadWay Staff. A news reporter who covers politics, world & travel news.
President Donald Trump is expected to implement a new $100,000 fee for the H-1B visa program, Bloomberg reported—his latest move to increase immigration-related fees.
The Trump administration has signed a new proclamation that will impose a substantial fee of $100,000 for H-1B visa applications, a move that is expected to have a significant impact on the U.S. tech industry and immigration policy. The new policy, which takes effect immediately, aims to curb what the administration describes as widespread abuse of the H-1B program and to protect American workers.
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The proclamation, signed by President Donald Trump, mandates that employers must pay a $100,000 fee for each new H-1B visa petition filed for a foreign national outside the U.S. This fee is a dramatic increase from the previous fees, which typically ranged from a few thousand dollars, and represents one of the most significant changes to the visa program in decades.
According to the administration, the new fee is designed to:
- Protect American Jobs: The White House has stated that the H-1B program has been exploited by companies to replace U.S. workers with lower-paid foreign labor, citing instances of companies laying off American employees while simultaneously receiving thousands of H-1B approvals.
- Elevate Skill Levels: The high cost is intended to deter companies from using the program for entry-level positions and instead incentivize them to hire only the most highly skilled and specialized workers who are truly irreplaceable by the domestic workforce.
- Reduce Abuse: The administration argues that the fee will put an end to what it calls “spamming” of the H-1B lottery system by companies that flood the process with multiple applications for the same individual.
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The new policy, however, has drawn immediate criticism from immigration advocates, lawyers, and some business leaders. They argue that the exorbitant fee:
Could Be Challenged Legally: Critics, including the American Immigration Lawyers Association (AILA), question whether the President has the legal authority to impose such a large fee, as Congress is traditionally the body that sets visa fee structures. They anticipate immediate legal challenges to the proclamation.
Hinders Innovation: Many in the tech industry, including venture capitalists and company leaders, warn that the policy could restrict access to top global talent, making it more difficult for U.S. companies to innovate and compete on the international stage.
Impacts Smaller Businesses: Smaller tech firms and startups that rely on foreign talent may be hit the hardest, as they may lack the financial resources to absorb the massive new costs.
Causes Confusion: The sudden nature of the proclamation has created confusion among companies and H-1B visa holders who were already outside the U.S. on the effective date.
The administration has clarified that the $100,000 fee is a one-time charge for new petitions and does not apply to current H-1B visa holders or those seeking to renew their status.
Key Facts
Trump is expected to sign an order as soon as Friday to try and require the payment for the visa program designed for specialty workers, typically in the technology field, an unnamed White House official told Bloomberg.
The existing program fees include $215 to register for the lottery and $780 for the petition, known as an I-29, filed by an employer sponsor, according to Bloomberg.
The White House also plans to order the Labor Secretary to reassess prevailing wages for the program, all moves designed to curtail the use of the program, which the Trump administration claims is causing American workers to be replaced with lower-paid foreign workers.
The move is expected to have an outsize impact on tech companies, such as IBM, Google and Amazon, which frequently use the program to recruit skilled workers to the U.S. on a temporary basis.
Elon Musk Vs. Maga: H-1b Visa Debate Has Divided Republicans
Former Trump ally Elon Musk is a proponent of the visa program, having held one himself and using it to recruit foreign workers for his companies. Tesla was sued in federal court earlier this month by a software engineer and human resources specialist who accused the company of refusing to hire them because they were U.S. citizens, alleging Tesla prefers to hire workers on H-1B visas over U.S. citizens so it can pay them less, Reuters reported. In December, Musk tweeted “the reason I’m in America along with so many other critical people who built SpaceX, Tesla and hundreds of other companies that made America strong is because of the H1B.” Others in Trump’s camp have taken a hardline stance against the program, arguing it disincentivizes American workers from entering the tech field. Commerce Secretary Howard Lutnick called the H-1B program a “scam that lets foreign workers fill American job opportunities” in August, while Vice President JD Vance has accused tech companies of laying off American workers only to apply for H-1B visas. Trump ally Steve Bannon also called the program a “total and complete scam from its top to the bottom” on his podcast in December in response to Musk’s defense of the program. Trump, who developed a relationship with many Silicon Valley giants during his second campaign and has fostered the connections during his second term, has walked a fine line in discussing the H-1B program, telling the New York Post in December he supports the program and has “used it many times” to hire workers at his properties.
