On September 19, 2025, President Donald Trump signed a proclamation introducing a $100,000 annual fee for H-1B visa applications, a move aimed at overhauling the program that allows US companies to hire highly skilled foreign workers.
The new policy, effective immediately, marks a significant shift in the administration’s approach to legal immigration, with potential ripple effects across the technology sector and beyond.
The H-1B visa program, established in 1990, enables employers to bring in up to 85,000 foreign workers annually, 65,000 under the standard cap and an additional 20,000 for those with advanced degrees from US institutions. The program has long been a cornerstone for tech giants like Amazon, Microsoft, and Meta, which rely on it to fill specialized roles. In the first half of 2025, Amazon secured over 10,000 H-1B visas, while Microsoft and Meta each obtained more than 5,000, according to US Citizenship and Immigration Services data.
The new fee, which dwarfs the current costs of $215 for registration and $780 for the I-129 petition, is intended to deter what the Trump administration describes as overuse of the program. ‘This ensures we’re bringing in only the most valuable workers while encouraging companies to hire Americans first,’ President Trump said during the signing ceremony in the Oval Office, flanked by Commerce Secretary Howard Lutnick.
Lutnick emphasized that major corporations were consulted and are ‘on board’ with the change, though several tech firms, including Microsoft, declined to comment when approached by media outlets.
Critics argue the fee could disrupt the tech industry’s ability to compete globally. The US tech sector, which drives innovation in artificial intelligence, cloud computing, and software development, often relies on talent from countries like India and China, which accounted for 71% and 11.7% of H-1B visa recipients last year, respectively.
Shares of companies heavily dependent on H-1B workers, such as Cognizant Technology Solutions, dropped nearly 5% on September 19, while US-listed shares of Indian firms Infosys and Wipro fell between 2% and 5%.
The proclamation also includes restrictions on H-1B visa entry unless accompanied by the $100,000 payment, a measure the administration claims will protect American workers from wage suppression and job displacement.
However, legal experts questioned its viability. Aaron Reichlin-Melnick, a senior fellow at the American Immigration Council, called the fee ‘almost certainly illegal,’ arguing that Congress authorizes visa fees only to cover adjudication costs, not to restrict program use.
Former presidential candidate Nikki Haley had also urged investment in American workers, arguing that the program undercuts domestic talent.
The H-1B fee hike is part of a broader immigration crackdown that includes increased enforcement and proposed changes to the visa lottery system.
In a parallel move, President Trump introduced a ‘Trump Gold Card’ visa program, offering permanent residency and a potential path to citizenship for foreign nationals who invest $1 million in the US, or $2 million if sponsored by a corporation. The administration frames this as a way to attract high-value investors while generating revenue.