In a significant policy shift, the Trump administration has signed an executive order that will impose a $100,000 annual fee on applicants for the H-1B visa program, which is widely used by U.S. companies to hire skilled foreign workers. The new fee, a dramatic increase from the previous administrative fees of about $1,500, is set to take effect on September 21 and will apply to all new applications.
According to U.S. Commerce Secretary Howard Lutnick, companies will be required to pay this fee every year for six years per applicant. Lutnick explained the rationale behind the order, stating, “The company needs to decide… is the person valuable enough to have a $100,000-a-year payment to the government, or they should head home, and they should go hire an American.”
The executive order, which cites “abuse” of the H-1B program, will also introduce a new “gold card” visa to fast-track certain immigrant applications in exchange for fees starting at £1 million.
Industry and International Reaction
The announcement has sent ripples through the corporate world and international communities. Following the news, tech giants like Amazon, one of the largest recipients of H-1B visas, advised its current visa holders in the U.S. to remain in the country. At the same time, the company urged those abroad to return before the new fee takes effect.
The move has drawn criticism from immigration attorneys and industry experts. Tahmina Watson, an immigration attorney, warned that the fee could be a “nail in the coffin” for small businesses and start-ups, predicting that “almost everyone’s going to be priced out.” Similarly, Jorge Lopez, an expert in immigration and global mobility, stated that the measure would “put the brakes on American competitiveness in the tech sector and all industries.”
India, which accounted for 71% of H-1B visas last year, expressed concern through its trade body, Nasscom, calling the abrupt, one-day deadline disruptive.
Historical Context
This is not the first time the Trump administration has tightened its stance on the H-1B program. During his first term in 2017, an executive order was signed to increase scrutiny of applications, which led to a surge in rejection rates. However, the new $100,000 fee marks the most significant policy change to date and is expected to have a profound impact on the future of the H-1B program.
Source: Al Jazeera
