The Trump administration on Friday unveiled a dramatic overhaul of the H-1B visa program, announcing it would impose a $100,000 annual fee on companies seeking to hire foreign workers under the scheme. The move immediately sparked concern among U.S. businesses, foreign governments, and immigration experts, who warned it could disrupt the technology sector and dissuade skilled talent from coming to the United States.
The announcement coincided with President Donald Trump’s rollout of a so-called “gold card” residency permit, offering permanent U.S. residency to those willing to pay $1 million. Together, the measures mark the administration’s latest effort to restrict both legal and illegal immigration.
Commerce Secretary Howard Lutnick defended the new visa policy, arguing it would force companies to invest in training U.S. graduates instead of relying on foreign labor. “If you’re going to train somebody, you’re going to train one of the recent graduates from one of the great universities across our land. Train Americans. Stop bringing in people to take our jobs,” Lutnick said.
On Saturday, the White House clarified that the new fee would only apply to newly issued visas, not renewals or current holders. Nonetheless, the announcement created immediate uncertainty for thousands of H-1B workers. Major firms including Microsoft, Amazon, and JPMorgan reportedly urged employees on the visa to remain in the United States and avoid international travel until the situation became clearer.
The reaction abroad was swift. India, whose citizens account for about 71 percent of H-1B holders, expressed concern about the sudden change. The Foreign Ministry warned of “humanitarian consequences” for families and stressed that skilled mobility between the two nations had fueled innovation and economic growth.
Supporters of the crackdown argue that the visa program has been misused, allowing companies to replace American workers. In a presidential proclamation, Trump claimed the system had been “deliberately exploited” in ways that threatened U.S. economic and national security. But critics counter that the change will harm competitiveness.
Elon Musk, who once held an H-1B visa himself, pointed out that many key contributors to Tesla, SpaceX, and other firms came to America through the program. Experts warn the steep cost could add billions in expenses for tech companies, with Amazon alone employing nearly 15,000 H-1B workers in 2024.
Legal scholars also questioned the policy’s legitimacy. Aaron Reichlin-Melnick, a senior fellow at the American Immigration Council, said Trump had “literally zero legal authority” to impose the fee, noting that only Congress can set visa charges. Immigration attorneys predicted swift court challenges.
The U.S. currently hosts about 700,000 H-1B visa holders, according to federal data. With India and China together accounting for more than 80 percent of approvals, the sudden policy shift could strain international ties while reshaping the U.S. labor market.