The Trump Administration announced a plan to charge companies $100,000 annually for each H-1B visa, a move expected to discourage the hiring of skilled foreign workers.
This action is part of a broader effort by the administration to tighten both legal and illegal immigration to the U.S. It was revealed on the same day President Donald Trump introduced a proposal for a “gold card,” offering U.S. residency to those investing $1 million.
Commerce Secretary Howard Lutnick stated the aim is to push companies to prioritize training American workers instead of recruiting talent from other countries.
“If you’re going to invest in training, focus on recent graduates from our nation’s top universities. Train Americans. Stop importing workers to take American jobs,” he said on Friday.
India, the source of a significant portion of H-1B visa recipients, expressed concern that the sudden policy change could create “humanitarian consequences by disrupting families.”
In a statement released Saturday, the Foreign Ministry noted that “The mobility of skilled workers has greatly helped technology advancement, innovation, economic growth, competitiveness, and wealth creation in both the United States and India.” The Indian government hopes the U.S. authorities will address these potential disruptions adequately.
The H-1B visa, a temporary work visa for foreign professionals in specialized fields like technology and engineering, previously cost between $1,700 and $4,500. It’s also highly sought after in higher education, healthcare, and finance. The visa is initially valid for three years and can be extended to a maximum of six years.
Those who support restricting H-1B visas argue the program displaces American workers from high-paying jobs. However, experts caution that these changes could negatively impact the tech sector as it adapts to the new regulations and may discourage international talent from seeking opportunities in the U.S. Some of President Trump’s key allies also oppose the restrictions.
Elon Musk, a former advisor to the President and a past H-1B visa holder, has previously supported the visa program. “The reason I, along with so many crucial individuals who built SpaceX, Tesla, and countless other companies that have strengthened America, am in America is because of the H1B,” Musk stated.
The announcement created uncertainty and confusion among current H-1B visa holders. Numerous companies that rely on the visa to employ skilled professionals have responded by quickly providing guidance to their employees.
According to Reuters, corporations like Microsoft, JP Morgan, and Amazon have sent internal communications to their H-1B visa holding employees advising them to remain in the United States.
Lutnick claimed to have the support of American businesses for the measure on Friday, stating, “Tech companies are on board; we’ve spoken to them.”
However, the legality of the action is being questioned.
Aaron Reichlin-Melnick, a senior legal fellow at the American Immigration Council, stated that Trump has “absolutely no legal right to impose a $100,000 fee on visas. None whatsoever.”
“The only power Congress has ever given the executive branch in this area is to collect fees to cover the costs of processing applications,” he added.
According to data from U.S. Citizenship and Immigration Services, India is the leading country for H-1B visas, accounting for nearly three-quarters of approved visa holders last year. China accounts for about 11% of H-1B visas, according to U.S. government data.
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