In a sweeping policy shift, US President Donald Trump has imposed a $100,000 annual fee on companies sponsoring H-1B visa holders - a dramatic increase from the current $1,000. The move is aimed at discouraging companies from using foreign workers as replacements for Americans, according to Trump aide secretary of commerce Howard Lutnick, who explained the administration’s reasoning.
“No more will these big tech companies or other big companies train foreign workers. They’ll have to pay the government $100,000, then they have to pay employees, so it’s just non-economic,” Lutnick said standing beside Trump in the Oval Office while he signed the proclamation.
Lutnick went on to explain the fee is part of a larger push to prioritise American graduates from US universities into the job market instead of foreign graduates or foreigners.
“If you’re going to train, you’re going to train a recent graduate from one of the great universities from across our land. Train Americans, stop bringing in people to take our jobs, that’s the policy here,” he added.
The hike, announced by Trump through an executive order, also directs the secretary of labor to revise wage rules and tighten eligibility requirements for H-1B workers. The aim is to allow only “high-value” roles to qualify, while limiting the use of visas for lower-cost labour.
Big tech 'loves it', says Trump
Backing Lutnick's comments, Trump claimed strong support from the private sector.
“And they love it, they love it, they really love it, they need it,” Trump said, referring to large corporations, during the policy announcement.
Lutnick also said the administration had held conversations with several major firms about the change and a proposed “Gold Card” programme.
“All the big companies are onboard, we have spoken to them about the Gold Card,” he added.
Fee to reshape skilled worker hiring
The $100,000 fee is annual, meaning companies will have to pay this amount each year per H-1B employee — a move expected to drastically limit usage of the visa for junior or mid-level positions.
Legal experts have raised questions about the legality of such a steep administrative fee, as US law typically restricts visa fees to costs of processing and enforcement. However, the Trump team argues it is within presidential authority on immigration matters.
While further details are awaited, including how the change will apply to current visa holders or renewals, the announcement marks a significant shift in how the US approaches high-skilled foreign workers — especially in the tech and IT sectors, which have traditionally relied heavily on Indian talent.
“No more will these big tech companies or other big companies train foreign workers. They’ll have to pay the government $100,000, then they have to pay employees, so it’s just non-economic,” Lutnick said standing beside Trump in the Oval Office while he signed the proclamation.
Lutnick went on to explain the fee is part of a larger push to prioritise American graduates from US universities into the job market instead of foreign graduates or foreigners.
“If you’re going to train, you’re going to train a recent graduate from one of the great universities from across our land. Train Americans, stop bringing in people to take our jobs, that’s the policy here,” he added.
🚨 BREAKING: By stroke of pen, President Trump raises the H-1B Visa fee from $1,000 to *$100,000,* and directs the Secretary of Labor to revise the wage rules to make it much harder for companies to hire foreigners in replacement of American workers.
— Eric Daugherty (@EricLDaugh) September 19, 2025
Massive win. pic.twitter.com/Gl9uybH3tw
The hike, announced by Trump through an executive order, also directs the secretary of labor to revise wage rules and tighten eligibility requirements for H-1B workers. The aim is to allow only “high-value” roles to qualify, while limiting the use of visas for lower-cost labour.
Big tech 'loves it', says Trump
Backing Lutnick's comments, Trump claimed strong support from the private sector.
“And they love it, they love it, they really love it, they need it,” Trump said, referring to large corporations, during the policy announcement.
Lutnick also said the administration had held conversations with several major firms about the change and a proposed “Gold Card” programme.
“All the big companies are onboard, we have spoken to them about the Gold Card,” he added.
Fee to reshape skilled worker hiring
The $100,000 fee is annual, meaning companies will have to pay this amount each year per H-1B employee — a move expected to drastically limit usage of the visa for junior or mid-level positions.
Legal experts have raised questions about the legality of such a steep administrative fee, as US law typically restricts visa fees to costs of processing and enforcement. However, the Trump team argues it is within presidential authority on immigration matters.
While further details are awaited, including how the change will apply to current visa holders or renewals, the announcement marks a significant shift in how the US approaches high-skilled foreign workers — especially in the tech and IT sectors, which have traditionally relied heavily on Indian talent.
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