Trump Slaps $100k Annual Fee on H-1B Visas

US President Donald Trump has unveiled sweeping new immigration measures, including a controversial annual fee of USD 100,000 on H-1B skilled worker visas, a move that could significantly disrupt the technology sector and affect thousands of foreign professionals.

Announced at the Oval Office on Friday, the order marks one of the most drastic overhauls of the H-1B programme in years. The H-1B visa, which allows American companies to hire foreign workers with specialised expertise—such as engineers, scientists, and computer programmers—has long been a lifeline for Silicon Valley and multinational firms.

“This is about bringing in great people, but they are going to be paying,” Trump declared as he signed the executive order. Under the directive, the fee will apply to all applicants beginning Sunday, although the Secretary of Homeland Security has been granted authority to exempt specific individuals, companies, or even entire industries. The order is initially valid for one year, but Trump can extend it further.

The measure comes alongside the introduction of a USD 1 million “gold card” residency programme, which offers a fast-track to permanent residency for wealthy individuals or corporate sponsors willing to pay up to USD 2 million. Trump said the initiative would attract top global talent and investment: “I think it’s going to be tremendously successful.”

The United States issues 85,000 new H-1B visas annually through a lottery system, with Indian nationals accounting for nearly three-quarters of recipients. In 2024 alone, about 400,000 H-1B visas were approved, two-thirds of them renewals.

The fee announcement has sparked widespread concern in the tech industry. Many firms, especially in Silicon Valley, depend heavily on Indian IT workers who either relocate to the US or travel frequently between the two countries. Business leaders and entrepreneurs—including Tesla chief Elon Musk, once a Trump ally—have previously cautioned against restricting the H-1B system, stressing that the US lacks enough domestic talent to fill key roles in advanced technology sectors.

Commerce Secretary Howard Lutnick, however, dismissed fears of industry backlash, insisting that “all the big companies are on board” with the plan.

This is not Trump’s first attempt to reshape the visa programme. During his first term, his administration targeted which jobs qualified for H-1B sponsorship, only to face setbacks in federal courts. Now in his second term, the new fee represents the latest step in his wider immigration crackdown.

The move has also drawn international attention. South Korea’s foreign ministry announced that it would assess the impact of the new measures on its companies and professionals working in the United States. The issue carries added sensitivity after hundreds of South Korean workers were detained earlier this month during a US immigration raid on a Hyundai-LG battery factory in Georgia.

Critics argue that the USD 100,000 annual fee could act as a prohibitive barrier, discouraging companies from sponsoring foreign experts and leaving critical gaps in the American workforce. Legal challenges are expected, with analysts predicting drawn-out battles in US courts over the constitutionality and economic impact of the measure.

For now, Trump’s order has sent shockwaves across global business and technology sectors, as firms brace for a sharp rise in costs and professionals reconsider their prospects of working in the United States.