Trump institutes a $100,000 fee for H-1B visas
Image: Andrew Harnik
On Friday, President Trump issued a proclamation imposing a new $100,000 fee for all H-1B visas moving forward, in a decision aimed at reshaping how foreign workers get hired within the US.
Alongside the H-1B visa proclamation, which officially took effect on Sunday, Trump also signed a separate executive order rolling out a “gold card” that grants US citizenship in exchange for $1 million.
What are H-1B visas? It’s the term for a temporary visa that allows US employers to hire foreign workers with at least a bachelor’s degree—or equivalent—for a “specialty occupation” that can’t be filled by US workers. H-1B visas are valid for up to three years, and extendable for up to six years—or even longer if the holder is applying for a green card.
- Applicants must enter a lottery system for one of the 85,000 H-1B visas issued by the US annually, with a ~10% chance of success in any given year.
- Currently, H-1B visas carry a $215 registry fee on top of the $2,000-$5,000 in fees paid by the hiring company in the US.
- Over 70% of H-1B recipients in recent years have come from India, with China ranking second at just over 10%, per federal data.
Trump’s new H-1B system changes things. The one-time $100,000 fee will only start kicking in for H-1B visa applicants who win the next lottery cycle, White House press secretary Karoline Leavitt clarified in an X post Saturday afternoon.
- Leavitt’s comments came in response to a furious scramble by several major companies following Trump’s initial H-1B announcement one day earlier.
- Amazon, Google, Microsoft, and Goldman Sachs were reportedly among the companies that urged their H-1B workers not to leave the US and to return from overseas on Saturday, citing fear of potentially being on the hook for $100,000 payments.
H-1B visas are a political flash point
Policymakers across the political spectrum have argued that H-1Bs are often used to hire cheaper foreign labor over American workers, and that companies often abuse the program by directly replacing US employees instead of filling genuine labor shortages.
- “President Trump promised to put American workers first, and this commonsense action does just that by discouraging companies from spamming the system and driving down wages," White House spokesperson Taylor Rogers told FOX Business.
- Similar critiques have long been raised by other politicians, including Sen. Bernie Sanders (I-VT), Sen. Eric Schmitt (R-MO), and Rep. Ro Khanna (D-CA).
On the flip side: Some pro-tech and immigration-focused groups oppose Trump's new changes to the H-1B program. They argue limiting such visas will shrink America’s talent pipeline, undermine job creation, and make it harder for the US to compete with China in developing technologies like AI.
Big picture: There are currently an estimated 730,000 H-1B holders within the US, as well as an additional 550,000 dependents (like spouses and children), representing nearly 1.3 million US residents. H-1B visas are one of several different work visas available to foreigners seeking employment in the US.
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Sprinkles from the Left
- Some commentators argue that while US employers may not like it, reform of the H-1B program is long overdue, as Trump is correct in saying H-1Bs have been “deliberately exploited” with “systemic abuses” to create large-scale replacement of skilled US labor with lower-paid workers.
- Others contend that substantially increasing H-1B visa fees to fund scholarships, apprenticeships, and job training opportunities for American workers is the best way to help the US succeed in a highly competitive global economy over the long-term.
- “$100,000 H-1B Visa Is a Gamble That Could Protect US Jobs” –Patricia Lopez, Bloomberg
- “H1-B visas hurt one type of worker and exploit another. This mess must be fixed” –Sen. Bernie Sanders (I-VT)
- “MAGA has a point. But scrapping H-1B isn’t the answer” –Houston Chronicle Editorial Board
Sprinkles from the Right
- Some commentators argue that it makes no sense to import 290,000 noncitizen H-1B holders when plenty of Americans would fill those positions if given the opportunity, and that too often, the visa holders’ loyalty remains in their homeland (particularly India).
- Others contend that the US shouldn’t go as far as completely gutting the H-1B visa program, which draws in foreign talent and helps make our country a global power, but rather strengthen the guardrails so that it actually applies to industries struggling to find US workers.
- “Trump canceling India’s jobs grab” –Washington Times Editorial Board
- “MAGA attacks on H-1B visas will hurt American entrepreneurship” –Dallas Morning News Editorial Board
- “H-1B Visas Are Good for U.S. Workers” –Samuel Gregg, president of the American Institute for Economic Research
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