President Donald Trump has introduced a new $100,000 fee on H-1B visa applications, a move that has sent shockwaves through Silicon Valley and the global tech community.
The special visa, widely used by US companies to hire highly skilled foreign workers, now faces a costly barrier designed to limit what Trump calls the "deliberate exploitation" of the program.
On September 19, Trump signed an executive order targeting the H-1B visa system, claiming it has been used to replace American workers with lower-paid foreign labor.
Under the new rule, companies applying for H-1B visas must pay the hefty fee, though Homeland Security Secretary Kristi Noem has the power to exempt some workers.
White House officials clarified that the fee applies only to new applicants outside the US starting February 2026, and not to current visa holders.
According to USA Today, the H-1B visa lets employers hire foreign workers with at least a bachelor's degree for "specialty occupations," mostly in science, technology, engineering, and math (STEM) fields.
The US issues 65,000 new visas yearly, with an extra 20,000 reserved for those holding advanced degrees from American universities. Most visa approvals come from renewals.
As a software engineer, I've seen firsthand how H-1B visas fuel innovation—bringing global brains to build the next big thing. But Trump's new $100K annual fee per visa just slammed the door. This isn't policy; it's a talent tax.#H1B #TechTalent pic.twitter.com/GZK2ls7JZc
— Shivam Gour (@hi_shivamgour) September 21, 2025
Tech Giants Depend on H-1B Workers for Key Skilled Roles
Tech giants heavily rely on H-1B workers. Amazon leads with over 10,000 approved visas this year, followed by Microsoft, Meta, Tata, Apple, and Google.
Many of these workers fill roles that require skills complementing American employees. The American Immigration Council highlights that companies must show hiring visa workers won't hurt US workers' wages or job conditions.
Commerce Secretary Howard Lutnick said, "All of the big companies are on board," arguing the fee forces businesses to decide if foreign workers are worth the cost or if they should hire Americans instead, BBC reported.
However, critics warn this could harm innovation and the tech industry's growth.
Indian trade group Nasscom called the fee "a huge blow" and warned it could cause "ripple effects" on American innovation. India sends nearly 75% of H-1B workers to the U.S., followed by China at about 12%.
Immigration lawyers warn that the new fee could price out many small businesses and start-ups that rely on H-1B talent. Tahmina Watson, an immigration attorney, said, "Almost everyone's going to be priced out... This $100,000 fee will have a devastating impact."
Jorge Lopez, a legal expert, added, "This will put the brakes on American competitiveness in the tech sector."
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