WASHINGTON (AP) — President Donald Trump on Friday signed a proclamation that will require a new annual $100,000 fee for H-1B visa applications, among other changes to the program for highly skilled foreign workers that has come under scrutiny by the administration.
H-1B visas are meant to bring the best and brightest foreigners for high-skilled jobs that tech companies find difficult to fill with qualified U.S. citizens and permanent residents. The program instead has turned into a pipeline for overseas workers who are often willing to work for as little as $60,000 annually. That is far less than $100,000-plus salaries typically paid to U.S. technology workers.
Trump on Friday insisted that the tech industry would not oppose the move. “I think they’re going to be very happy,” he said.
First lady Melania Trump, the former Melania Knauss, was granted an H1-B work visa in October 1996 to work as a model. She was born in Slovenia.
The H1-B program was created in 1990 for people with a bachelor’s degree or higher in fields where jobs are deemed hard to fill, especially science, technology, engineering and math. Critics say they allow companies to pay lower wages with fewer labor protections.
Historically, these visas — 85,000 per year — have been doled out through a lottery system. This year, Amazon was by far the top recipient of H-1B visas with more than 10,000 awarded, followed by Tata Consultancy, Microsoft, Apple and Google. Geographically, California has the highest number of H-1B workers, according to UCIS.
Critics say H-1B spots often go to entry-level jobs, rather than senior positions with unique skill requirements. And while the program isn’t supposed to undercut U.S. wages or displace U.S. workers, critics say companies can pay less by classifying jobs at the lowest skill levels, even if the specific workers hired have more experience.
As a result, many U.S. companies find it cheaper simply to contract out help desks, programming and other basic tasks to consulting companies such as Wipro, Infosys, HCL Technologies and Tata in India and IBM and Cognizant in the U.S. These consulting companies hire foreign workers, often from India, and contract them out to U.S. employers looking to save money.
Doug Rand, who served as the director of U.S. Citizenship and Immigration Services during the Biden administration, said this amounts to a “split personality disorder” for the program, with only about half of the visas each year going to traditional companies that offer long-term employment and can put immigrants on a track to citizenship. The other half go to staffing or consulting firms — and while many are established and well-known companies, others are just one-person operations that wouldn’t exist without the H1-B program.
“They’re basically entering the lottery so they can hire people that they then rent out to other larger companies doing actual work,” Rand said. “And so there’s a lot of misbehavior and chicanery in this part of the system.”
In 2024, lottery bids for the visas plunged nearly 40%, which authorities said was due to success against people who were “gaming the system” by submitting multiple, sometimes dubious, applications to unfairly increase chances of being selected.
Major technology companies that use H-1B visas sought changes after massive increases in bids left their employees and prospective hires with slimmer chances of winning the random lottery. Facing what it acknowledged was likely fraud and abuse, USCIS this year said each employee had only one shot at the lottery, whether the person had one job offer or 50.
Critics welcomed the change but said more needs to be done. The AFL-CIO wrote last year that while changes to the lottery “included some steps in the right direction,” it fell short of needed reforms. The labor group wants visas awarded to companies that pay the highest wages instead of by random lottery, a change that Trump sought during his first term in the White House.
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Ortutay reported from Oakland, Calif. Associated Press writer Adriana Gomez Licon in Ft. Lauderdale, Fla., contributed to this report
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