President Donald Trump has enacted a controversial new policy that levies a staggering $100,000 annual fee on H-1B visa applications. The proclamation, signed on Friday, is poised to send shockwaves through the U.S. technology sector, which heavily depends on skilled foreign workers, particularly from India and China, to fill critical roles. This move represents one of the most aggressive steps taken to overhaul the nation’s high-skilled immigration system.
The administration defended the decision as a pro-American worker policy. Commerce Secretary Howard Lutnick stated at a press briefing that major tech companies had been informed of the change. “If you’re going to train somebody, you’re going to train one of the recent graduates from one of the great universities across our land. Train Americans,” Lutnick remarked, arguing the fee would force companies to prioritize domestic talent over foreign hires.
This policy shift creates a significant financial hurdle for companies that utilize the H-1B program. In the first half of 2025 alone, giants like Amazon, Microsoft, and Meta had thousands of these visas approved. The program, which currently offers 85,000 visas annually, is a primary pathway for bringing in specialists in fields like computer science, engineering, and healthcare. The new fee could make this talent pipeline prohibitively expensive for many.
Critics immediately raised alarms about the potential damage to American innovation and economic competitiveness. Deedy Das, a partner at Menlo Ventures, warned that the fee “creates disincentive to attract the world’s smartest talent to the US.” Supporters of the H-1B program, including notable figures like Elon Musk—a former visa holder himself—argue it is essential for filling talent gaps that cannot be met by the domestic workforce alone.
Legal experts are also questioning the very foundation of the proclamation, suggesting the president lacks the unilateral authority to impose such a massive fee. Aaron Reichlin-Melnick of the American Immigration Council asserted that the executive branch can only charge fees to recover application processing costs, a power granted by Congress. This sets the stage for a potential legal battle that could see the policy challenged and blocked in federal court, similar to previous immigration measures.