Trump Imposes $100000 Fee Annually for H-1B Visas

Trump Imposes $100000 Fee Annually for H-1B Visas

Trump Imposes $100000 Fee Annually for H-1B Visas – Why in News?

Recently, US President Donald Trump introduced a new rule requiring companies to pay $100,000 annually to sponsor H-1B visas for foreign workers to prioritize higher-skilled talent under the ‘H-1B Visa Program’.

What is the H-1B Visa Program?

• About: The H-1B visa is a temporary work permit that allows foreign nationals to live and work in the United States. It was introduced under the Immigration Act of 1990. It is a non-immigrant visa that is designed for professionals who hold expertise in fields that require technical knowledge. These areas often include information technology, engineering, finance, healthcare, mathematics, and education.

• Objectives: The main aim of the H-1B visa program is to fill the gap in the American labor market where skilled domestic workers are limited. By allowing companies to access a pool of skilled workers from abroad, the program supports innovation and productivity. It creates opportunities for collaboration between global talent and U.S. firms.

• • Eligibility: Applicants must need a minimum of a bachelor’s degree or higher in a relevant field. In some cases, work experience may substitute for formal education. The sponsoring employer must prove that the role requires specialized skills that are not easily found in the local workforce.

• Application Process: To apply for this visa the employer has to file a Labor Condition Application (LCA) provided by the Department of Labor. Once the LCA is approved, the employer has to file Form I-129 with the U.S. Citizenship and Immigration Services (USCIS). If this form is accepted, the applicant has to attend a visa interview at a U.S. consulate. After this applicant is considered eligible for this visa. 

• Features: The H-1B visa has several unique features that make it different from other visa categories.

• The visa is usually granted for an initial period of three years. It can be extended to a maximum of six years.
  

Trump Imposes $100000 Fee Annually for H-1B Visas

• • A U.S. employer must sponsor the applicant. Individuals cannot apply independently.
  • Visa holders can bring their spouse and children under the H-4 visa category.
  • Workers can switch employers if the new employer files a petition.
  • It supports industries that rely heavily on STEM fields. 
  • Companies such as Google, Microsoft, and Apple employ thousands of H-1B workers.
  • The U.S. imposes an annual cap on this visa category. The current limit stands at 65,000 visas per fiscal year. An additional 20,000 visas reserved for applicants with advanced degrees from U.S. institutions.
  • The USCIS uses a lottery system to randomly select petitions and to approve applications.

Why was the Decision Made? – Trump Imposes $100000 Fee Annually for H-1B Visas

• Focus on Skilled Workforce: The reason behind the move was the desire to attract the best talent. The USA wants companies to sponsor only those foreign workers who have very rare and high-level skills. By setting a large fee, only employers who truly needed top-level workers would go ahead with sponsorship.

• Protecting Domestic Workers: The government wants to reduce competition between foreign workers and local job seekers. The administration wants U.S. companies to focus on hiring local graduates instead of relying on foreign professionals. Commerce Secretary Howard Lutnick stressed that if companies are going to train workers, they should train American graduates from the country’s universities.

• Political Context: The policy was also part of a larger immigration agenda. Since 2016, the Trump administration has promised to tighten rules on both legal and illegal immigration. Immigration was often linked with job loss in domestic industries. In this context, the H-1B program came under increased review. By placing an annual fee, the government signaled a shift toward more restrictive immigration.

• Financial Considerations: The administration also framed the decision as a way to generate revenue. Former President Trump openly stated that the United States would continue to welcome great people, but they would now have to pay for the privilege of working in the country. Such funds could potentially support domestic training programs.

Impact of this Decision – Trump Imposes $100000 Fee Annually for H-1B Visas

• Large technology companies like Amazon, Microsoft, Google, and Apple are among the biggest users of H-1B visas. In 2025, Amazon alone received more than 10,000 approvals. A fee of $100,000 per year will increase costs by millions of dollars each year. 
• Start-ups and mid-sized firms may struggle to compete with this cost. This could reduce the ability of smaller firms to hire international talent. This could reduce America’s edge in fields such as artificial intelligence and advanced computing.
• The H-1B system has historically been linked to innovation in the U.S. Around 71 percent of H-1B visas in 2024 went to Indian professionals, many of whom work in the tech sector. By limiting access through higher fees, the U.S. risks slowing down its technological growth.
• International students, particularly from India and China, often rely on the H-1B program as a pathway to stay in the U.S. after graduation. This could reduce enrollment in American universities, which already depend on international students for tuition revenue.
• US Companies may decide to move high-value work overseas instead of paying the new fee. If this happens, the U.S. could lose not only jobs but also its influence in emerging sectors. This could weaken the country’s position against global competitors like China.
• According to the data from the Bureau of Labor Statistics shows that by 2030, the U.S. may face a shortage of 1.2 million STEM professionals. This policy could increase opportunities for local workers but the U.S. will still face a shortage of workers.