The Trump Administration said it would charge companies $100,000 per year for H-1B visas, a policy that will likely hamper the ability of American tech companies to hire skilled workers from around the world.
The move comes amid a widespread effort by the administration to crack down on both illegal and legal immigration to the United States. It was unveiled on the same day as President Donald Trump rolled out a “gold card” that would grant U.S. residency for those willing to pay $1 million.
Commerce Secretary Howard Lutnick said the measure was aimed at pressuring companies to train American workers for high-skilled jobs covered by the visa, rather than bringing in talent from abroad.
“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. Stop bringing in people to take our jobs,” he said Friday.
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The H-1B visa, a temporary, non-immigrant work visa that allows U.S. employers to hire foreign workers in specialty occupations such as technology and engineering, previously cost between $1,700 and $4,500. It is also highly sought after in higher education, healthcare, and finance. The visa initially lasts for three years but can be extended for up to six.
Supporters of the crackdown on the H-1B visas say the program takes away highly paid jobs from American workers. But experts warn the changes could deal a blow to the tech industry as it adapts to the new rules, and deter global talent from coming to the United States. And some of President Trump’s key backers are opposed to the restrictions.
Elon Musk, a former advisor to the president and former holder of the visa, previously advocated for the visa program. “The reason I’m in America along with so many critical people who built SpaceX, Tesla and hundreds of other companies that made America strong is because of H1B,” Musk said on X in December 2024.
The announcement caused chaos and confusion for current H-1B visa holders. Several companies that utilize the visa to employ skilled professionals have responded to the new fees by rushing out advice to their employees.
According to Reuters, companies including Microsoft, JP Morgan and Amazon sent memos to employees holding H-1B visas to remain in the United States.
Senior legal fellow at the American Immigration Council Aaron Reichlin-Melnick said on BlueSky that Trump has “literally zero legal authority to impose a $100,000 fee on visas. None. Zip. Zilch.”
“The only authority Congress has ever given the executive branch here is to charge fees to recover the cost of processing the application,” he continued.
India is the top country for H-1B visas, according to the Pew Research Center, accounting for close to three-quarters of approved visa holders last year. The country’s Ministry of Foreign Affairs responded to the news in a statement, saying that the measure “is likely to have humanitarian consequences by way of the disruption caused for families.”
“Skilled talent mobility and exchanges have contributed enormously to technology development, innovation, economic growth, competitiveness and wealth creation in the United States and India,” the Ministry said. “Policy makers will therefore assess recent steps taking into account mutual benefits, which include strong people-to-people ties between the two countries.”
China accounts for around 11% of H-1B visas, according to U.S. government data.
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