WASHINGTON – The Trump administration is moving to introduce a steep $100,000 annual fee for companies hiring foreign workers under the H-1B visa program, a dramatic shift that could reshape the tech industry’s access to global talent.
Commerce Secretary Howard Lutnick confirmed on Friday that the proposal aims to push U.S. firms to prioritize domestic graduates over overseas workers. “If you’re going to train somebody, train an American graduate. Stop bringing in people to take our jobs,” Lutnick said, echoing the administration’s broader crackdown on immigration since Trump returned to the White House in January.
Tech Industry on Edge
The plan represents the most aggressive attempt yet to overhaul the H-1B system, which supplies skilled labor in science, technology, engineering, and mathematics (STEM) fields. While critics argue the program suppresses wages and sidelines American workers, supporters including former Trump ally and Tesla CEO Elon Musk contend that it fills critical talent shortages and keeps U.S. firms competitive.
The proposed fee, which would apply for each year of the visa’s three-year term, could add millions in costs for employers. Analysts warn smaller tech companies and start-ups would be hit hardest, potentially forcing them to shift operations abroad at a time when the U.S. is racing China in fields like artificial intelligence.
“In the short term, Washington may see higher revenues. In the long term, this risks taxing away America’s innovation edge,” said Jeremy Goldman, an analyst at eMarketer.
India and China Most Affected
India, whose citizens made up 71% of H-1B approvals last year, is expected to bear the brunt of the new policy. China accounted for just under 12%. U.S. tech giants are also major stakeholders in the first half of 2025 alone, Amazon and AWS secured more than 12,000 H-1B approvals, while Microsoft and Meta each cleared more than 5,000.
The announcement rattled markets. Shares of IT services firms that rely heavily on foreign talent including Cognizant, Infosys, and Wipro dropped between 2% and 5% on Friday.
Legal and Policy Questions
Critics also question whether the White House has the authority to impose such high fees. “Congress has only permitted agencies to set fees that recover processing costs. Anything beyond that may be unlawful,” said Aaron Reichlin-Melnick, policy director at the American Immigration Council.
Currently, entering the H-1B lottery requires only a nominal fee, with approved applications costing employers a few thousand dollars. The visas typically last three to six years, and the majority of costs are borne by companies rather than applicants.
Immigration Overhaul Continues
The fee proposal is part of a broader immigration agenda. On the same day, Trump signed an executive order creating a so-called “gold card” a pathway to permanent U.S. residency for individuals willing to invest $1 million.
While the administration insists the new measures will protect American jobs, critics argue they could undermine the very innovation and competitiveness that have long been central to the U.S. economy.
