President Donald Trump has ordered a steep new cost on skilled worker visas, setting a
$100,000 annual fee for H-1B applications. The proclamation, signed on Friday, is the latest move in his administration’s tightening of immigration rules.
How the program works
The H-1B system lets U.S. companies hire foreign workers with specialized skills in science, technology, engineering, or medicine. The visas run for three years with the option to extend to six. Each year, 65,000 are granted by lottery, with an additional 20,000 for graduates of U.S. advanced degree programs. Approvals, including renewals, reached about 400,000 in 2024. India remains the main source of recipients, accounting for the majority of visas.
White House justification
The administration says the change addresses abuse in the system. Officials point to examples where companies obtained thousands of H-1B visas while cutting American jobs. A White House fact sheet noted one company received approval for over 5,000 foreign workers this year while laying off about 16,000 U.S. staff. The proclamation also frames the fee as a matter of national security.
Exemptions and timeframe
The Homeland Security Secretary has been given power to exempt individuals, companies, or industries if national interest is cited. The new fee takes effect immediately and is set to last for one year unless extended.
Wage rules under review
Alongside the fee, the Labor Secretary has been directed to revise wage requirements. The goal is to prevent companies from undercutting U.S. salaries by relying on lower-paid foreign workers. Federal data shows that H-1B holders now fill more than 65 percent of IT roles, up from about 32 percent in 2003. Unemployment among recent computer science graduates has risen above six percent.
Impact on the tech industry
Technology firms are expected to resist the move. Many of them rely on foreign talent, especially Indian engineers, to fill roles that U.S. graduates cannot meet at scale. Past visa holders have included figures who went on to shape the industry. Elon Musk entered the United States on an H-1B before founding Tesla and SpaceX. Instagram co-founder Mike Krieger, originally from Brazil, also began on an H-1B and faced delays that nearly derailed his startup plans.
Policy background
The H-1B program has swung in response to changing administrations. Approvals peaked in 2022 under President Joe Biden. Rejections reached their highest point in 2018 during Trump’s first term. The new financial barrier is seen as a continuation of the current White House crackdown on immigration.
Additional residency track
The order also creates a new residency pathway known as the “gold card.” Individuals can secure permanent U.S. status by paying $1 million, while companies may sponsor workers by paying $2 million. The administration has promoted the measure as a way to attract high-value investors.
Legal challenges ahead
The sharp rise in costs is expected to trigger pushback from Silicon Valley and other sectors that depend heavily on international talent. Legal challenges are likely in the months ahead as the policy takes hold.
Conclusion
The new restrictions also reveal a wider truth about global labor. Workers from developing nations often help sustain the economies of wealthier countries, yet they can be discarded once policy priorities change. When advanced nations draw on foreign talent to meet their needs and later push those same people aside, it reduces human beings to temporary resources rather than valued contributors. Such patterns highlight the imbalance of power in international labor markets and raise questions about fairness, dignity, and long-term responsibility toward the people who help drive growth.
Notes: This post was edited/created using GenAI tools. Image: DIW-Aigen.
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