Trump hits H-1B visas, a tech industry favorite, with $100,000 fee

AFP/APP

Washington: US President Donald Trump on Friday ordered an annual $100,000 fee to be added to H-1B skilled worker visas, a move that could have major repercussions for the tech industry, where such permits are widely used.

The new measure, which could face legal challenges, was announced alongside the launch of a $1 million “gold card” residency program that Trump had previewed months earlier.

“The main thing is, we’re going to have great people coming in, and they’re going to be paying,” Trump told reporters as he signed the orders in the Oval Office.

H-1B visas allow companies to sponsor foreign workers with specialized skills—such as scientists, engineers, and computer programmers—to work in the United States. The permits are initially valid for three years, extendable to six years. Each year, the United States awards 85,000 H-1B visas through a lottery system, with India accounting for about three-quarters of the recipients.

Large technology firms rely heavily on Indian workers who either relocate to the US or move back and forth between the two countries. Tech entrepreneurs—including Trump’s former ally Elon Musk—have warned against targeting H-1B visas, saying the United States lacks sufficient homegrown talent to fill critical tech sector roles.

“All the big companies are on board,” said Commerce Secretary Howard Lutnick, who joined Trump in the Oval Office.

Trump has long had the H-1B program in his sights. During his first term, he faced court challenges to efforts aimed at narrowing the types of jobs that qualify. The latest move marks a continuation of his administration’s immigration crackdown in his second term.

According to Trump’s order, the new $100,000 fee will apply to those seeking entry beginning Sunday. However, the Secretary of Homeland Security has the authority to exempt individuals, companies, or entire industries. The order expires in one year, though Trump can extend it.

The number of H-1B applications has surged in recent years, with approvals peaking in 2022 under Democratic President Joe Biden. In contrast, the highest rejection rate was recorded in 2018 during Trump’s first term. In 2024, the United States approved around 400,000 H-1B visas, two-thirds of which were renewals.

Alongside the visa changes, Trump also signed an order creating an expedited pathway to US residency for individuals who pay $1 million, or for corporate sponsors who pay $2 million.

“I think it’s going to be tremendously successful,” Trump added.