Trump Imposes $100,000 Annual Fee on H-1B Visas; India, With 71% Approvals, Faces Major Impact

India emerged as the top recipient of H-1B visas last year, securing 71% of the approved applications. In contrast, China followed with 11.7%. This data highlights India's significant presence in the H-1B visa landscape.

Impact of New H-1B Visa Fee

President Donald Trump recently signed an executive order introducing a $100,000 annual fee for H-1B visas. This move aims to curb what is seen as excessive use of the program. "We need great workers, and this pretty much ensures that that's what's going to happen," Trump stated during the signing at the Oval Office.

The White House explained that this measure encourages companies to hire American workers first while still allowing them to employ highly skilled foreign professionals in specialised areas. Commerce Secretary Howard Lutnick commented, "So no longer will you put trainees on an H-1B visa. That it's just not economic anymore. If you're going to train people, you're going to train Americans… If you have a very sophisticated engineer and you want to bring them in… then you can pay $100,000 a year for your H-1B visa."

Industry Reactions and Concerns

Jeremy Goldman, an analyst at eMarketer, expressed concerns about the long-term effects of this policy. He remarked that while it might generate revenue initially, it could hinder innovation by prioritising protectionism over dynamism. Deedy Das from Menlo Ventures echoed similar sentiments on X, stating that the new fee discourages attracting top global talent to the US. He warned that failing to attract such talent could significantly impact America's capacity for innovation and economic growth.

The H-1B program annually offers 65,000 visas for temporary foreign workers in specialised fields and an additional 20,000 for those with advanced degrees. Currently, entering the lottery involves a small fee, with subsequent costs potentially reaching several thousand dollars if approved.

Major Companies and Visa Approvals

In early 2025, Amazon.com and its cloud-computing division AWS received approval for over 12,000 H-1B visas. Meanwhile, Microsoft and Meta Platforms each secured more than 5,000 approvals. These figures underscore the reliance of major tech firms on skilled foreign workers through the H-1B program.

Since taking office in January, President Trump has initiated extensive immigration reforms aimed at limiting certain forms of legal immigration. The changes to the H-1B visa program represent one of his administration's most prominent efforts to modify temporary employment visas.

The introduction of a substantial fee for H-1B visas marks a significant shift in US immigration policy under Trump's administration. While it may initially boost government revenue, experts caution against potential long-term drawbacks such as reduced innovation and economic growth due to decreased access to global talent.