In brief
In a significant policy shift, President Trump has announced a new $100,000 fee for applicants to the H-1B visa program, which aims to attract skilled labor from abroad. This decision has been met with criticism from various sectors, highlighting potential negative impacts on American competitiveness and small businesses. The change is framed as a means to tackle perceived abuses of the visa system, while advocates emphasize the importance of foreign talent for US innovation.
US President Donald Trump has signed an executive order that will add a $100,000 (£74,000) fee for applicants to the H-1B visa programme aimed at bringing in skilled workers from abroad into certain industries.
The proclamation mentions 'abuse' of the programme and will restrict entry unless payment is made. Critics of the programme 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.
Joining Trump in the Oval Office on Friday was US Commerce Secretary Howard Lutnick. 'A hundred thousand dollars a year for H1-B visas, and all of the big companies are on board,' he said. 'We've spoken to them.' Lutnick highlighted the need to prioritize training American workers over importing foreign labor.
Since 2004, the number of H-1B applications has been capped at 85,000 per year. Now, applications for H-1B visas for the next fiscal year have dropped 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.
The new fee may significantly affect small businesses that often rely on H-1B visas to fill skill gaps. Tahmina Watson, a founding attorney at Watson Immigration Law, remarked that this ruling could be a 'nail in the coffin' for many of her clients, mostly small businesses and start-ups. She argued that the high fee might deter many employers from seeking foreign talent, which they often need to fulfill positions that local labor cannot.
Moreover, the $100,000 fee could stunt American competitiveness in the tech sector, with some companies considering relocating their operations outside the US due to these new financial burdens. The debate over H-1Bs has previously divided Trump's team, showcasing the complexity of immigration issues amid changing economic landscapes.
Trump's administration has periodically tightened restrictions on H-1Bs since he took office, with scrutiny increasing in recent years. This new fee introduced a dramatic shift in policy, raising concerns, particularly in countries like India, which is a significant source of H-1B applicants.
