A IMGW News Report
Donald Trump has signed a proclamation imposing a $100,000 fee on new H-1B visa applications, in what may prove the most disruptive intervention in America’s skilled immigration system in decades. The fee, effective from 21 September 2025 and due to lapse a year later unless extended, replaces the previous $215 charge. It applies only to new petitions, not to renewals or current visa holders.
“Large firms may weather the shock. Amazon, Google, Meta, Microsoft and Apple were among the top sponsors of H-1B visas in 2024”
The H-1B visa is the principal route for foreign professionals in fields such as computing, engineering, science and education to work in the United States. Each year, 85,000 visas are issued, with a further 20,000 reserved for advanced graduates of American universities. In fiscal 2024, most approvals were for computer-related roles (64%), followed by architecture and engineering (10%), and education (6%), according to US Citizenship and Immigration Services.
Who Will Be Most Affected
The burden will fall most heavily on sectors already facing skills shortages. Professional, scientific and technical services accounted for nearly half of all H-1B approvals last year, while manufacturing took 11%. Within technology, custom software programming was the single largest subsector.
Large firms may weather the shock. Amazon, Google, Meta, Microsoft and Apple were among the top sponsors of H-1B visas in 2024, securing thousands of approvals apiece. For companies with trillion-dollar capitalisations, the cost can be absorbed. Smaller businesses and start-ups, however, are unlikely to compete. For them, a six-figure levy on a single hire could prove prohibitive, skewing access to foreign talent even further towards the technology giants.
Globally, the impact will be felt most by countries that dominate H-1B inflows. India accounted for 71% of approved petitions in 2024, and China for 11.7%. However, professionals from countries as varied as Canada, South Korea, and the United Kingdom also use the programme to fill high-skilled positions in America.
“Trump’s gamble is simple: price out most applicants and only the very elite will remain. But the risk is that America loses not just workers, but its edge in innovation”
Politics and Pushback
Trump’s advisers are divided. Commerce Secretary Howard Lutnick calls the fee a way of ensuring “top, top people” are admitted. Steve Bannon, a former strategist, denounces H-1Bs as a Silicon Valley “scam”. By contrast, Elon Musk and Vivek Ramaswamy, now tasked with trimming government bureaucracy, warn that America’s competitiveness depends on global recruitment.
Legal experts suggest challenges are inevitable. Congress authorises fees only to recover processing costs, not to create fiscal barriers. Immigration advocates argue the proclamation exceeds presidential authority and is unlikely to survive scrutiny.
Economic Risks
Restricting visas may not achieve its stated aim of boosting jobs for Americans. Previous crackdowns, including during the pandemic, coincided with record-high vacancies and mounting complaints from employers unable to hire. Analysts also warn the new policy could push firms to relocate work offshore to countries such as India, China and Canada, rather than hiring locally.
Trump’s gamble is simple: price out most applicants and only the very elite will remain. But the risk is that America loses not just workers, but also its edge in innovation.
