Washington: In a major move to reform the H-1B visa program, US President Donald Trump signed a proclamation on Friday imposing a $100,000 annual fee for companies seeking to sponsor foreign workers under the H-1B system. The measure aims to ensure that the visa program serves its original purpose: attracting highly skilled professionals in technology, science, engineering, and mathematics, rather than allowing companies to hire workers at lower wages.
White House staff secretary Will Scharf described the H-1B program as “one of the most abused visa systems” in the US. “This proclamation will raise the fee that companies pay to sponsor H-1B applicants to $100,000. This will ensure that the people they’re bringing in are actually very highly skilled and not replaceable by American workers,” he said.
Commerce Secretary Howard Lutnick added that the policy will encourage companies to hire and train American graduates rather than relying on foreign talent. “No more will these big tech companies train foreign workers. They have to pay the government $100,000, then pay the employee. It’s just not economic. If you’re going to train somebody, train one of the recent graduates from one of our great universities,” he said.
The H-1B visa program has long faced scrutiny for being misused by companies seeking to hire foreign workers at wages below the US tech industry standard. While a typical US tech worker earns a six-figure salary, many H-1B workers are paid less than $60,000 annually, raising concerns about fairness and labor replacement.
Trump emphasized that the new rules are intended to benefit genuinely skilled foreign workers and ensure companies use the program for specialized talent, rather than for entry-level positions.
The proclamation requires companies to pay a $100,000 annual sponsorship fee, ensuring that only organizations with a legitimate need for highly skilled workers participate. H-1B visas are typically issued through a lottery system, with 85,000 visas available annually. Leading recipients include Amazon, Microsoft, Apple, and Google, with California hosting the largest number of H-1B employees, according to USCIS.
The policy is expected to disproportionately affect Indian nationals, who comprise 71% of approved H-1B visa holders, followed by China at 11.7%. Visas are usually granted for three years, extendable up to six years.
This move is part of the Trump administration’s broader push to either restrict or monetize legal immigration.
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