Trump Hits H-1B Visas With $100K Fee: What Now for Tech Sector?

Donald Trump has announced a $100K fee to go into the H-1B visa program – in a move which will likely have major repercussions for the technology industry. 

The United States awards 85,000 H-1B visas per year through a lottery system. The visas allow companies to sponsor foreign workers with specialized skills – like computer programmers – to work in the country, initially for three years, but extendable to six years.

India accounts for roughly three-quarters of the recipients, with many Indians either relocating to the US or coming and going between the two countries while working for major tech companies, AFP reports. 

Critics of the program have argued that H-1B visas undercut American workers, while supporters argue that they allow the US to attract some of the best talent from around the world.

Trump announced the new measure last Friday. The president told reporters: “The main thing is, we’re going to have great people coming in, and they’re going to be paying.” 

Confusion Over ‘Annual’ $100K Fee

Initial reports had suggested that the $100K fee would be “annual”, but the White House later issued a clarification saying it would be a “one-time” payment imposed only on new applicants.

While announcing the major fee increase on Friday, US Commerce Secretary Howard Lutnick said it would be paid annually and would apply to people seeking a new visa as well as renewals.

But on Saturday, White House Press Secretary Karoline Leavitt issued a clarification, hours before the policy was to go into effect.

Before the clarification, American businesses were scrambling to figure out what this meant for their foreign workers, with several reportedly warning their employees not to leave the US.

Leavitt said: “Those who already hold H-1B visas and are currently outside of the country will NOT be charged $100,000 to re-enter… H-1B visa holders can leave and re-enter the country to the same extent as they normally would.”

The US approved roughly 400,000 H-1B visas in 2024 – two-thirds of which were renewals. The majority of beneficiaries came from India.

Big tech industry names, including former Trump ally Elon Musk, have voiced strong opinions against targeting H-1B visas, claiming that the US does not have enough homegrown talent to fill important tech sector job vacancies.

But Trump makes the argument that this measure will support American workers. His executive order claims that the H-1B program “has been deliberately exploited to replace, rather than supplement, American workers with lower-paid, lower-skilled labor.”

The president’s order, which mentions “abuse” of the H-1B programme, will restrict entry unless payment is made.

In a separate order, Trump announced a new $1M “gold card” residency program for certain immigrants.

India’s foreign ministry said it would assess the changes, and argued that the mobility of skilled talent had contributed to “innovation” and “wealth creation” in both countries. 

It said in a statement that the new policy might have “humanitarian consequences by way of the disruption caused for families”.

Final Thoughts

Trump has had H-1B visas in his sights since his first term, but faced legal challenges to his earlier approach. This new measure may also face legal challenges

The order expires in a year, but the president can extend it. 

The tech sector has arguably come to rely somewhat on H-1B visa workers, so this move will no doubt have major repercussions for industry giants – including Salesforce. 

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