Donald Trump signed a proclamation on Friday imposing an annual $100,000 fee on H-1B visa applications, a move that could significantly impact the US tech industry, which relies heavily on skilled workers from India and China.
US Commerce Secretary Howard Lutnick said at a briefing that major companies had been informed and supported the new fee. He emphasized the importance of training American workers rather than relying on foreign labor to fill these roles.
The tech sector, which contributed millions to Donald Trump campaign, depends on the H-1B visa program more than any other industry. Approximately two-thirds of these visas are for computer-related jobs, but they also cover engineers, educators, and healthcare professionals. In the first half of 2025, companies like Amazon, Microsoft, and Meta consistently secured thousands of H-1B visas.
Donald Trump
Critics argue the program suppresses wages and sidelines American workers, while supporters, including Tesla CEO Elon Musk, stress that it fills critical talent gaps. Musk himself once held an H-1B visa before becoming a naturalized US citizen.
Some experts question the legal authority for imposing such a high fee, noting that visa fees have traditionally covered only processing costs. Under current rules, applicants pay relatively modest fees and those costs are usually borne by employers.
The new fee could raise expenses notably for smaller tech firms and startups. Lutnick said companies will either retain highly valuable foreign talent or hire Americans, aligning with the administration’s goal to prioritize American workers.
This move is part of a broader Donald Trump administration effort to tighten legal immigration and increase revenue from visa programs. Recent measures include a pilot program requiring bonds for visas from certain countries and prior travel bans affecting multiple nations. Previous attempts to restrict H-1B access were blocked in court.
