TLDR
- President Trump introduces a $100,000 annual fee for H-1B visa applications.
- The $100,000 fee targets skilled foreign workers, impacting tech firms.
- Smaller companies may struggle with the new $100,000 annual fee on H-1Bs.
- Immigration experts question the legal authority of the new H-1B visa fee.
President Trump has officially signed an executive order that will impose a $100,000 annual fee on H-1B visa applications. This new fee, effective from September 21, 2025, is aimed at regulating the number of skilled foreign workers entering the U.S. While this move has generated mixed reactions, it poses a major challenge for the U.S. tech sector, which heavily relies on foreign talent, especially from countries like India and China.
Executive Order on H-1B Visa Fees
On September 19, 2025, President Trump signed an executive order that will charge a $100,000 annual fee on H-1B visa applications. The move comes as part of an effort to curb the number of foreign workers coming to the U.S. for specialized jobs in industries like technology, engineering, and healthcare.
Under the new policy, employers who wish to hire foreign workers under the H-1B visa program will need to pay this fee, which is a significant increase compared to the existing costs associated with the application process.
The U.S. Commerce Secretary, Howard Lutnick, mentioned that large companies have been briefed about the new fee structure. “All the big companies are on board,” Lutnick said at a press briefing.
He explained that employers will need to evaluate whether hiring a foreign worker is worth the added cost or whether they should hire an American worker instead. This change is expected to affect companies, especially in the tech sector, which has been a major beneficiary of the H-1B visa program.
Effect on U.S. Tech Industry
The U.S. tech industry is one of the biggest users of the H-1B visa program, with companies like Amazon, Microsoft, and Meta relying on foreign workers to fill key positions. In the first half of 2025 alone, Amazon secured over 10,000 H-1B visas, while Microsoft and Meta each obtained more than 5,000. These companies often argue that the H-1B program helps them secure skilled workers needed to stay competitive in the global market.
Critics, however, argue that the H-1B program undermines the job market for American workers by allowing companies to hire foreign workers at lower wages. Supporters of the program, such as Tesla CEO Elon Musk, maintain that the program is vital for attracting top talent and sustaining innovation. “If the U.S. ceases to attract the best talent, it drastically reduces its ability to innovate and grow the economy,” said Deedy Das, a partner at venture capital firm Menlo Ventures.
Financial Burden on Smaller Companies
For smaller tech firms and startups, the new $100,000 annual fee could create significant financial strain. Many small companies have relied on the H-1B program to fill positions they struggle to fill with local talent. Immigration lawyer Tahmina Watson warned that the new fee could be a “nail in the coffin” for many of her clients, who are mainly small businesses and startups. She added that most companies sponsor foreign workers because they are unable to find qualified workers locally.
Additionally, the added cost may lead to fewer applications for H-1B visas, which could further reduce the talent pool available to U.S. companies. Immigration experts are questioning the legal authority of the executive order, with some arguing that the president does not have the power to impose such high fees without Congressional approval.
Legal and Practical Concerns
The legality of the new fee has been challenged by some immigration experts. Aaron Reichlin-Melnick, a senior fellow at the American Immigration Council, stated that the president has no legal authority to impose a $100,000 fee. “The only authority Congress has ever given the executive branch here is to charge fees to recover the cost of processing the application,” he wrote.
While the new fee only applies to new visa applications, it could have long-lasting effects on U.S. businesses that rely on skilled foreign workers. Companies may choose to relocate operations abroad to avoid the high costs of hiring foreign workers in the U.S., which could affect the country’s competitiveness in the global market.
This executive order, along with other recent measures aimed at limiting immigration, marks another step in President Trump’s broader strategy to reshape U.S. immigration policy.
