The Trump administration has announced a proposal to impose a $100,000 annual fee on H-1B visas. This move directly targets companies that hire skilled foreign workers. The decision was confirmed on Friday, September 19.
This policy represents a significant shift in U.S. immigration strategy. It aims to strongly incentivize the hiring of American workers first.
Impact on Tech Giants and Startups
The proposed fee would apply for each H-1B employee. Companies must pay it annually for up to six years. This creates a substantial new cost for businesses reliant on specialized global talent.
According to Reuters, major tech firms have already advised current visa holders to remain stateside. The policy primarily affects new applicants and those seeking visa renewals. Current visa holders are safe for the duration of their existing status.
Industry analysts warn this could harm U.S. competitiveness. They argue it may push high-value jobs to other countries. This could stifle innovation and economic growth in the long term.
Broader Immigration Strategy and Market Response
This visa fee hike is part of a wider immigration crackdown. The administration is reshaping various temporary employment visa programs. The goal is to prioritize American workers for domestic jobs.
The commerce secretary publicly supported the measure. He urged companies to train recent American graduates instead. The message is to stop bringing in foreign workers to fill roles.
The financial burden falls entirely on employers. This could lead to difficult decisions about hiring and expansion. Some companies might consider relocating certain operations overseas to access talent.
Info at your fingertips
Who is most affected by the new H-1B visa fee?
New applicants and employees seeking visa renewals will be impacted. Current H-1B holders are not immediately affected. Employers bear the full financial cost of the new fee.
Which countries receive the most H-1B visas?
India is the largest beneficiary, accounting for over 70% of visas. China is a distant second. These two nations will feel the greatest impact from the policy change.
How many H-1B visas are granted each year?
The annual cap is set at 85,000 new H-1B visas. This number has remained consistent for many years. The new fee does not change this numerical limit.
How long is an H-1B visa typically valid?
An H-1B visa is usually granted for an initial period of three years. It can often be extended for another three years. The new $100,000 fee would be required for each year of validity.
Which U.S. companies use the most H-1B visas?
Major tech firms are the largest users. Amazon, Microsoft, and Meta Platforms secure thousands of approvals annually. They rely on this program to source specialized talent.
Get the latest News first — Follow us on Google News, Twitter, Facebook, Telegram , subscribe to our YouTube channel and Read Breaking News. For any inquiries, contact: [email protected]