U.S. President Donald Trump on Friday announced a sweeping change to the H-1B visa program, unveiling an order that requires employers to pay an additional $100,000 fee per H-1B worker each year. The move is expected to have far-reaching implications for the technology sector, where such visas are a critical channel for hiring skilled foreign professionals.
While signing the executive order in the Oval Office, Trump said:
“The main thing is, we’re going to have great people coming in, and they’re going to be paying.”
What the New Order Entails
Under the directive, every employer sponsoring an H-1B visa holder will need to pay the annual $100,000 fee in addition to the employee’s salary. According to Commerce Secretary Howard Lutnick, who joined Trump during the signing, the requirement will cover both new applications and renewals.
Trump has also allowed for exemptions, stating that the Homeland Security secretary can exclude certain individuals, companies, or entire industries from the mandate. The order takes effect immediately from Sunday and will remain valid for one year, though the president retains the authority to extend it.
Impact on the Tech Sector
H-1B visas are commonly used to bring in professionals with specialized expertise — including scientists, engineers, and IT specialists — to work in the United States. The program currently allocates 85,000 visas annually through a lottery system, with Indian nationals making up nearly 75% of the recipients.
Large U.S. tech firms have long depended on this pipeline, often rotating Indian employees between offices in the U.S. and abroad. Critics of the new policy warn it could severely disrupt operations.
Entrepreneurs, including Elon Musk, once a close ally of Trump, have expressed concern about targeting H-1B visas. Musk and others argue that the U.S. workforce does not have enough domestic talent to fill high-demand technology roles.
Historical Context
The H-1B visa program has repeatedly been in Trump’s crosshairs since his first term in office. Earlier attempts to restrict qualifying job categories were blocked by courts. This new approach — focusing on steep financial costs — reflects his administration’s broader crackdown on immigration during his second term.
The number of H-1B petitions has surged in recent years. The highest approvals came in 2022 under President Joe Biden, while the peak rejection rate was seen in 2018, during Trump’s first term. In 2024 alone, nearly 400,000 H-1B visas were approved, two-thirds of which were renewals.
Introduction of a ‘Gold Card’ Residency Pathway
Alongside the H-1B fee order, Trump introduced a fast-track residency option — dubbed informally as the “gold card.” Under this system, an individual can obtain expedited U.S. residency by paying $1 million, while corporations can secure sponsorship for $2 million.
“I think it’s going to be tremendously successful,” Trump said, calling it an innovative way to attract investment while tightening immigration rules.
Potential Fallout
The sharp increase in costs could discourage companies from hiring foreign workers, disproportionately affecting the tech sector where such talent is most sought after. With the new fee structure, employers face a stark choice between absorbing significant costs or scaling back their reliance on international professionals.
Meanwhile, Indian outsourcing companies — historically the biggest beneficiaries of the H-1B program — are expected to be hit hardest, as their business models rely on sending large numbers of skilled engineers to the United States.
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