Trump Imposes $100,000 Annual Fee on H-1B Visas, Sending Shockwaves Through US Tech Industry

In a move that has rattled the American technology sector and sparked a fresh debate over immigration policy, US President Donald Trump has signed an executive order imposing a $100,000 annual fee on all H-1B visa applications. The sweeping change marks one of the most significant shifts in US skilled-worker immigration policy in decades and is expected to have far-reaching consequences for companies and foreign professionals alike.

A Direct Challenge to Tech Dependence on Foreign Talent

The H-1B visa program has long been a lifeline for technology firms and other industries seeking to hire highly skilled foreign professionals. According to government data, nearly two-thirds of H-1B roles are in computer-related fields, though the program is also used to recruit engineers, educators, and healthcare workers. By dramatically increasing the cost of sponsorship, the new policy places immediate pressure on companies that rely heavily on international talent, particularly in the tech sector.

Commerce Secretary Howard Lutnick defended the decision, stating that the goal is to ensure that only the “best and most valuable” candidates are brought to the United States. “Either the individual is so critical that a company is willing to pay this amount, or they should return to their home country,” Lutnick said bluntly. “Companies must decide: is this employee worth a $100,000 annual government fee, or should they hire an American instead?”

Prioritizing US Graduates

Lutnick emphasized that the policy is designed to put American graduates first. “If you’re going to train someone, train a recent graduate from one of our great universities. Stop bringing in people to take American jobs,” he declared. The administration argues that the higher fees will encourage companies to hire locally and invest in the domestic workforce rather than relying on foreign professionals.

President Trump echoed this sentiment, predicting that the technology industry would ultimately support the move. “The tech sector will be very happy with this change,” Trump claimed, framing the decision as a way to protect American workers while generating additional federal revenue.

Industry Concerns and Global Impact

Despite the administration’s assurances, industry leaders and immigration experts warn that the policy could have severe consequences for the US economy. Tech companies, in particular, fear that the steep new costs will limit their ability to attract top global talent, slow innovation, and push investment to other countries with more open immigration policies. Startups and mid-sized firms, which often lack the deep pockets of corporate giants, are expected to feel the impact most acutely.

The decision also comes at a time when global competition for skilled workers is intensifying. Countries such as Canada, the United Kingdom, and Australia have been expanding their own talent-friendly immigration programs, potentially making them more attractive destinations for highly skilled professionals who might once have sought opportunities in the United States.

A Turning Point for US Immigration Policy

The $100,000 annual fee represents a significant escalation in the cost of hiring foreign talent and signals a broader shift toward an immigration system that favors wealth and exceptional ability over traditional work visas. Coming on the heels of the recently announced Gold Card and Platinum Visa programs—offering fast-track residency for high-net-worth individuals—the H-1B hike underscores the administration’s strategy of limiting access for ordinary professionals while creating premium pathways for the ultra-wealthy.

As the new fee structure takes effect, companies, workers, and policymakers around the world will be watching closely. For many aspiring professionals, the dream of working in the United States just became far more expensive—and, for some, perhaps unattainable