Trump Imposes $100,000 H-1B Visa Fee in Sweeping Immigration Overhaul

US President Donald Trump has signed a proclamation imposing a major new fee on H-1B visas. The order mandates a $100,000 annual payment from companies sponsoring foreign workers. This new rule is set to take effect on September 21.

The move directly targets companies that rely heavily on the visa program. It is framed as a necessary measure to protect American jobs and national security.

New Rule Targets Outsourcing Firms and Visa Abuse

The proclamation specifically restricts the entry of certain non-immigrant workers. H-1B petitions will now require the substantial fee to be considered valid. Any application without the payment will be denied outright.

According to the White House document, the program has been “deliberately exploited.” President Trump stated it has been used to replace American workers with lower-paid labor. He described this systemic abuse as a clear national security threat.

The policy will significantly impact the technology sector. Indian nationals receive approximately 75% of the 85,000 H-1B visas awarded annually. Major outsourcing firms are expected to bear the heaviest burden from this new financial requirement.

National Security and Economic Concerns Cited

The administration’s justification cites investigations into visa fraud and other illicit activities. Reuters has previously reported on law enforcement scrutiny of some H-1B reliant companies. The proclamation argues this abuse has weakened the U.S. economy and job market.

It highlights high unemployment rates among American computer science graduates. A stark example was provided of a firm approved for thousands of H-1Bs while laying off over 15,000 U.S. employees. Some American workers were allegedly forced to train their foreign replacements.

The new fee aims to curb these practices while still allowing access to top global talent. An exception clause exists for cases deemed in the national interest. The Secretaries of Homeland Security and State will oversee the rule’s implementation.

This substantial H-1B visa fee change marks one of the most aggressive reforms to the program in decades. Its implementation will be closely watched by industries and foreign workers alike, fundamentally altering the landscape of skilled labor immigration to the United States.

Info at your fingertips

When does the new $100,000 H-1B visa fee start?

The new rule is scheduled to take effect on September 21. Petitions filed after that date must include the fee.

Who has to pay the new H-1B visa fee?

The employer or company sponsoring the foreign worker is responsible for the $100,000 annual payment. It is not paid by the visa applicant.

Are there any exceptions to the new fee?

Yes. The Secretary of Homeland Security can exempt individuals or companies if it is determined to be in the national interest and does not pose a security threat.

How will this affect Indian tech workers?

It could significantly reduce opportunities. Indian nationals are the largest group of H-1B visa recipients, often hired by outsourcing firms most affected by the fee.

What was the reason given for this new fee?

The Trump administration cited the replacement of American workers and national security concerns from alleged systemic visa fraud and abuse.

Does this affect current H-1B visa holders?

The restrictions apply to workers seeking entry after September 21. It primarily impacts new petitions and renewals for those outside the U.S.

Trusted Sources

The White House, Reuters.