US President Donald Trump has signed an executive order that will add a $100,000 (£74,000) annual fee for applicants to the H-1B visa programme for skilled foreign workers.
Trump's order mentions 'abuse' of the programme and will restrict entry unless payment is made. Critics have long argued that H-1Bs undercut the American workforce, while supporters—including billionaire Elon Musk—argue it allows the US to attract top talent from around the world.
In another order, Trump set up a new 'gold card' to fast-track visas for certain immigrants in exchange for fees starting at £1m.
Trump's order is due to come into force on 21 September. It would only apply to new requests, but companies would have to pay the same amount for each applicant for six years, according to US Commerce Secretary Howard Lutnick.
'The company needs to decide... is the person valuable enough to have a $100,000-a-year payment to the government, or they should head home, and they should go hire an American,' he said, adding: 'All of the big companies are on board.'
Since 2004, the number of H-1B applications has been capped at 85,000 per year. Until now, H-1B visas have carried various administrative fees totaling around $1,500.
Data from US Citizenship and Immigration Services (USCIS) shows that applications for H-1B visas for the next fiscal year fell to about 359,000—a four-year low.
The greatest beneficiary of the programme the previous fiscal year was Amazon, followed by tech giants Tata, Microsoft, Meta, Apple, and Google, according to government statistics.
Late on Friday, Amazon instructed employees with H-1B visas already in the US to remain there and advised those abroad to try to return before the deadline. Anyone unable to return in time was cautioned against attempting re-entry until further guidance is provided.
India's leading trade body Nasscom expressed concern about the new edict, emphasizing that the last-minute deadline creates considerable uncertainty for businesses, professionals, and students worldwide.
India was the largest beneficiary of H-1B visas last year, accounting for 71% of approved applications. China followed with 11.7%.
Experts have voiced strong objections to the impact of this hefty fee, suggesting it could be particularly damaging to small businesses and startups reliant on foreign talent. They argue such fees could stifle job opportunities in the US tech sector.
The debate over H-1Bs has previously brought division within Trump's team, with President Trump himself acknowledging the pros and cons during discussions on labor immigration.
As the situation unfolds, many are left questioning the future of skilled labor in the American job market.
