Trump Administration Imposes $100,000 Fee on H-1B Visas, Significantly Tightening US Work Visa Rules

Washington, Sept 2025: In a major blow to Indian tech professionals and foreign workers in the United States, President Donald Trump on Friday signed a presidential proclamation that drastically reforms the H-1B visa program, introducing a staggering $100,000 annual fee per visa. The move is aimed at curbing what the administration calls the overuse of H-1B visas by U.S. companies and incentivizing the hiring of American workers.

Speaking at the White House during the signing, Trump emphasized that the initiative is designed to “ensure American jobs for American workers.” He added, “We need workers. We need great workers, and this pretty much ensures that.”

Commerce Secretary Howard Lutnick echoed the President’s reasoning, asserting that the new policy would discourage companies from training and employing foreign workers at the expense of domestic talent. “No more will these big tech companies or other major firms train foreign employees for free. They now must pay $100,000 to the government and then pay the worker. It’s just not economic,” Lutnick said. “Instead, companies will train Americans, recent graduates from top universities, and stop importing labor that displaces domestic talent.”

Lutnick further clarified that H-1B visas would now be renewable for a maximum of six years, and the new rules would apply to both new applications and renewals. “Either the person is truly valuable to the company and the country, or they must depart. No more giveaways,” he added.

The proclamation accused the H-1B program of being “deliberately exploited to replace, rather than supplement, American workers with lower-paid, lower-skilled labor,” claiming it undermines both economic stability and national security. In addition, the Secretary of Labor is tasked with reviewing prevailing wage levels under the program to further protect domestic employees.

Trump and Lutnick insisted that major technology companies, including Silicon Valley giants, are supportive of the reforms. “They love it. They really love it. They need it. Everyone’s going to be very happy,” Trump said, highlighting the administration’s belief that the policy would retain highly productive workers in the country.

In a related development, Trump signed an executive order establishing a “gold card” program, allowing individuals to secure a visa for $1 million and corporations for $2 million, effectively creating a high-end alternative for affluent applicants.

The H-1B program, historically capped at 85,000 new visas annually, enables U.S. companies to employ skilled foreign workers, primarily in technology and engineering. According to Pew Research, India-born professionals accounted for roughly 73 percent of H-1B approvals in 2023, followed by China at 12 percent, largely due to a substantial backlog and the high volume of skilled applicants from India.

Earlier in August, the Department of Homeland Security proposed changes to eliminate the lottery system in favor of a “weighted selection process.” Meanwhile, the Department of Justice (DoJ) intensified scrutiny of hiring practices under the H-1B program. Led by India-born Assistant Attorney General of Civil Rights Harmeet Dhillon, the DoJ has urged Americans to report cases where citizens are unfairly passed over for visa holders. Dhillon confirmed that several investigations have already been launched and enforcement actions taken against some employers. “Send us your leads,” she urged the public.

Interestingly, Trump had previously endorsed the H-1B program in December 2024, calling himself a “believer” in its benefits and noting his own experience with H-1B workers on his properties. However, the recent reforms appear influenced by pressure from far-right activists advocating for tighter immigration policies. Tesla CEO and former Trump aide Elon Musk had previously pledged to defend the H-1B program, vowing to “go to war” over visa restrictions.

The latest changes are expected to have far-reaching consequences for U.S. tech companies, which have long relied on H-1B visa holders for highly specialized roles. Analysts predict that the new $100,000 fee, combined with the six-year limit and stricter wage enforcement, could significantly reduce foreign worker participation and increase hiring of domestic talent.

As these reforms take effect, Indian professionals—who have historically made up the bulk of H-1B visa recipients—may face greater hurdles entering or extending their work in the United States. The long-term impact on Silicon Valley, technology innovation, and U.S.-India professional exchange remains to be seen.