US President Donald Trump has signed an executive order introducing a $100,000 fee for H-1B visas. A White House official familiar with the plan confirmed the measure, aimed at curbing what the administration describes as the “overuse” and “abuse” of the visa program.
H-1B Visa Program Overview
The H-1B visa program allows U.S. companies to hire foreign workers in sectors such as technology, engineering, and medicine. Thousands of skilled professionals from countries like India and China apply annually to join the U.S. workforce.
Why the New Fee Matters
The new $100,000 fee will make entry under the H-1B program contingent on payment, intended to discourage companies from exploiting loopholes in the system.
Currently, employers already cover multiple charges, including:
- $215 registration fee for the lottery process
- $780 petition filing fee for Form I-129
- Other costs associated with sponsorship
Critics argue that the added $100K fee could make hiring foreign talent far more expensive, particularly for smaller firms.
How H-1B Visas Are Distributed
H-1B visas are distributed through a lottery system, but some companies reportedly submit large numbers of applications, limiting opportunities for smaller businesses.
- Major tech firms sponsor highly specialized, well-paid roles.
- Staffing and outsourcing companies take nearly half of the 85,000 annual visas, often placing workers in lower-wage positions.
Legislative Context: American Tech Workforce Act
Earlier, Senator Jim Banks introduced the American Tech Workforce Act, aiming to:
- Overhaul the H-1B system
- Raise wage requirements for visa holders
- Restrict alternatives for companies hiring foreign talent
Supporters argue the current system displaces American workers, while critics emphasize H-1B visas are vital for addressing labor shortages in specialized industries.
