The White House has upended America’s tech sector with a dramatic new fee on skilled-worker visas. President Donald Trump on Friday signed an executive order imposing a staggering $100,000 annual charge on each H-1B visa applicant, a move he says is meant to curb “abuse” of the system and prioritize American workers, according to BBC News.
The order, set to take effect September 21, applies to all new petitions. Companies would be required to pay the fee for up to six years—the duration of a typical H-1B stay—turning what was once a $1,500 administrative cost into a multimillion-dollar liability for firms employing foreign talent.
Commerce Secretary Howard Lutnick framed the measure bluntly: “The company needs to decide—is the person valuable enough to have a $100,000-a-year payment to the government, or should they go hire an American?” He added that major corporations are “on board” with the plan.
Critics warn the measure could throttle innovation. Tahmina Watson, a Seattle immigration lawyer, called it a “nail in the coffin” for small businesses and startups. “Almost everyone’s going to be priced out,” she said. “Many employers sponsor foreign talent only when they cannot find American workers to fill the job.”
The H-1B program, capped at 85,000 visas annually, has long been a political flashpoint. Supporters—including Tesla and SpaceX CEO Elon Musk—argue it keeps America competitive by drawing the brightest minds from around the world. Opponents insist it suppresses wages and displaces domestic workers.
Last year, the biggest beneficiaries of the program included Amazon, Microsoft, Google, Apple, and Meta, alongside Indian outsourcing firms like Tata. India remains the largest source of H-1B applicants—a reality that has stirred unease in New Delhi over Trump’s new order.
The administration also announced a “gold card” visa, fast-tracking entry for select immigrants in exchange for payments starting at £1 million.
For now, the industry is bracing for impact. “This will put the brakes on American competitiveness,” said Jorge Lopez, an immigration attorney. “Some companies will be forced to look abroad.”
