US President Donald Trump has imposed a $100,000 annual fee on H-1B visas, sparking alarm across the global tech industry. The order, signed in the Oval Office, will apply to new applicants starting Sunday. Trump said the measure will ensure only the “best people” come to the US while contributing more financially.
The H-1B visas are crucial for tech companies, particularly in hiring skilled workers from India, which accounts for most recipients. Firms rely on these workers to fill roles in engineering, computing, and science that lack enough homegrown talent. Critics argue the fee will discourage applications, hurt innovation, and create labor shortages.
Alongside the fee, Trump launched a $1 million “gold card” residency program. Individuals or companies can fast-track residency by paying the set amount. Commerce Secretary Howard Lutnick said the policy had wide corporate support, but entrepreneurs like Elon Musk warned it could harm US competitiveness.
The H-1B program allows 85,000 visas annually under a lottery system, extendable to six years. Recent years saw rising applications, with approvals peaking in 2022 under Joe Biden. Trump has long targeted the program, but previous restrictions faced court challenges. His latest approach adds financial barriers instead of narrowing job categories.
As the policy takes effect, tech leaders brace for impact. Many fear it will drive skilled workers to other countries offering friendlier immigration policies. The new fee on H-1B visas highlights Trump’s immigration crackdown and signals lasting effects for America’s technology sector.