Big change for H-1Bs: Donald Trump signs order to increase visa application fee to $100,000; aim to protect US tech jobs

US President Donald Trump has signed a new proclamation introducing a $100,000 annual fee for H-1B visa applications, along with other changes to the skilled foreign worker programme, which has been under scrutiny for years.Originally designed to attract exceptional foreign talent for specialised technical roles, the H-1B programme has evolved into a channel for workers accepting salaries around $60,000 annually—well below the $100,000-plus compensation typical for American technology professionals, according to AP reports."I think they're going to be very happy," Trump said, anticipating the tech industry’s response to the changes.

Additionally, White House staff secretary Will Scharf said, "One of the most abused visa systems is the H1-B non-immigrant visa programme. This is supposed to allow highly skilled labourers who work in fields that Americans don't work in to come into the United States of America. What this proclamation will do is raise the fee that companies pay to sponsor H-1B applicants to $100,000. This will ensure that the people they're bringing in are actually very highly skilled and that they're not replaceable by American workers.

"It is noteworthy that Melania Trump, formerly Melania Knauss, received an H-1B visa in October 1996 for modelling work; she hails from Slovenia.Established in 1990, the H-1B programme targets individuals with bachelor's degrees or higher in difficult-to-fill positions, particularly in STEM fields. Critics argue the system enables lower wages and limited worker protections. The annual quota of 85,000 visas has traditionally been distributed through a lottery.Lottery applications fell nearly 40 per cent in 2024, following measures to prevent multiple entries that skewed selection odds. Major tech companies had requested reforms after surging applications reduced individual chances, prompting USCIS to limit candidates to a single lottery entry, regardless of multiple job offers. Amazon currently leads in approvals with over 10,000, followed by Tata Consultancy, Microsoft, Apple, and Google, with California hosting the largest H-1B workforce.Detractors note that many H-1B positions are junior-level roles rather than senior specialist jobs. Companies can reportedly reduce costs by classifying roles at lower skill levels while employing experienced workers. This has led to outsourcing of basic technical operations to consultancies such as Wipro, Infosys, HCL Technologies, Tata, IBM, and Cognizant, which employ foreign workers—mostly from India—contracted to American firms seeking cost savings.While critics welcome these changes, they are calling for further reforms. The AFL-CIO said the measures are "some steps in the right direction" but advocated for visas to be allocated based on highest wage offers rather than random selection—a proposal previously floated during Trump’s first term.

Significance of the new rule

The increased fees could affect hiring foreign workers as it'll cost more for companies. Currently, companies pay $215 to register for the lottery and $780 for a Form I-129, the employer-sponsored petition for a non-immigrant worker.The move is expected to discourage mass applications for H-1B visas, particularly affecting startups and small businesses that may struggle to absorb the higher upfront cost. Companies hiring foreign workers will now face significantly higher expenses, potentially shifting focus back to American tech workers.Also read: $100,000 fee for companies hiring H-1Bs- What does this mean? What is the present cost?The change also aims to curb abuse of the H-1B system, where companies hire foreigners at lower wages for entry-level roles, while paying Americans significantly more for the same jobs.

With the $100,000 fee, hiring foreign talent becomes equally costly, likely reducing opportunities for H-1B-dependent workers.The overhaul comes amid discussions to reform or end the lottery system and raise wage requirements, prioritizing high-wage, high-skill foreign workers and opening more entry-level jobs for US graduates. The administration’s broader goal is to protect American employment in the technology sector.