Select Language:
The Trump administration announced plans on Friday to impose a $100,000 annual fee on companies sponsoring H-1B visas, a move that could significantly impact the tech industry, which heavily relies on skilled workers from India and China. Since assuming office in January, Trump has implemented broad immigration restrictions, including measures to limit certain types of legal immigration. The proposed change to the H-1B visa program is the administration’s most prominent effort yet to overhaul temporary work visas.
“Training should be done by Americans, especially recent graduates from renowned universities across the country. We should focus on developing American talent and stop bringing in workers who displace our workforce,” said U.S. Commerce Secretary Howard Lutnick.
This proposal has sparked controversy within the tech sector, which has financially supported Trump’s presidential campaign. Critics argue that the program can be exploited to suppress wages and marginalize American workers capable of filling these roles. Supporters, including Tesla CEO Elon Musk, contend that H-1B visas are crucial for bringing in highly skilled talent necessary to close skills gaps and maintain global competitiveness. Musk, who was born in South Africa and became a U.S. citizen, has himself held an H-1B visa.
The executive order indicates some employers have used the program to keep wages artificially low and disadvantage U.S. workers. Between 2000 and 2019, the U.S. experienced more than a twofold increase in STEM (science, technology, engineering, and mathematics) foreign workers, reaching nearly 2.5 million, outpacing the 44.5% growth in overall STEM employment during that period.
Adding hefty fees “will discourage the world’s brightest minds from choosing the U.S.,” said Deedy Das, a partner at venture capital firm Menlo Ventures, on X (formerly Twitter). “If we stop attracting top talent, our ability to innovate and grow the economy will suffer dramatically.”
The new fee could also lead companies to shift high-value projects overseas, potentially hampering America’s leadership in artificial intelligence and other advanced technologies. While the administrative details are still being finalized, Lutnick stated that the fee would be $100,000 per year per visa, spanning three years, with the specifics still under review.
Some analysts warn that this move might have long-term adverse effects, prompting companies to relocate critical projects abroad and diminishing America’s innovation edge, especially in the AI race with China. Jeremy Goldman, an analyst at eMarketer, commented that “short-term revenue gains for Washington may come at the cost of losing long-term technological leadership.”
India remained the largest beneficiary of H-1B visas last year, accounting for 71% of approved visas, with China trailing at 11.7%, based on government data. In the first half of 2025, tech giants like Amazon and its cloud unit AWS received approval for over 12,000 H-1B visas, with Microsoft and Meta each getting more than 5,000.
Lutnick mentioned that “major corporations are in support” of the $100,000 annual fee and added, “We’ve discussed this with them.” However, many large U.S. tech, banking, and consulting firms declined to comment or did not respond immediately. The Indian embassy in Washington and the Chinese Consulate in New York also did not promptly respond to inquiries.
Shares of Cognizant Technology Solutions, which heavily relies on H-1B workers, fell nearly 5%, while Indian tech stocks Infosys and Wipro declined between 2% and 5%.
Legal experts have expressed doubts about the legality of the new fee structure. Aaron Reichlin-Melnick, policy director at the American Immigration Council, pointed out that Congress has only authorized fees to recover processing costs, not to generate revenue.
Currently, the H-1B program grants 65,000 visas annually, with an additional 20,000 available for applicants with advanced degrees. Candidates often participate in a lottery system, paying fees that can total several thousand dollars, with these fees primarily paid by employers. The visas are valid for three to six years.
Additionally, Trump signed an executive order establishing a “green card” option for individuals willing to pay $1 million for permanent U.S. residency.
Add us on ChatGPT
Add us on Perplexity
