The Trump administration has announced a steep new fee for H-1B visas. Starting this weekend, companies will be required to pay $100,000 per year for each foreign worker under the program. The move has sent shockwaves through the tech industry, which relies heavily on skilled professionals from countries like India and China.
US Commerce Secretary Howard Lutnick said the policy aims to prioritize American graduates. He added that companies should stop hiring foreign workers for jobs that Americans can fill. Critics say the new rule is part of a broader immigration crackdown. It could also discourage international talent from working in the US.
Major companies like Microsoft and JPMorgan advised their H-1B employees not to leave the country. They warned that reentry might become complicated once the new fee takes effect. Employees currently outside the US were told to return before midnight Saturday. The government has yet to release full guidelines on how the new fee will be implemented.
Analysts warn the policy could damage US innovation. Venture capital firms say it may deter the world’s brightest minds from coming to America. Smaller tech firms and startups may struggle to absorb the extra cost. Experts also believe this could push high-value tech jobs overseas. That may weaken the US position in fields like AI.
India, which accounts for 71% of H-1B approvals, is likely to be hit hardest. Shares of Indian IT companies like Infosys and Wipro dropped after the news. Immigration advocates have also questioned the legality of the massive fee hike. Trump’s team insists top firms are supportive, but many companies have stayed silent so far.