On Friday, local time, US President Donald Trump signed a proclamation requiring a $US100,000 ($150,000) annual visa fee for highly-skilled foreign workers.<\/p>\n
He also signed an executive order to roll out new $US1 million “gold card” visas, offering a potential pathway to US citizenship for wealthy foreigners.<\/p>\n
These eye-watering price hikes will boost the cost of the high-skilled H-1B visa from $US215 to $US100,000 and the investor visas from a maximum of $US20,000 to $US1 million for the “gold card”.<\/p>\n
But what exactly does it mean? And who will be most impacted?<\/p>\n
Let’s dive in.<\/p>\n
<\/p>\n
H-1B visas are principally used for high-skilled jobs that tech companies find difficult to fill. (ABC News: Natalie Whiting)<\/p>\n
What is the H-1B visa?<\/p>\n
The H-1B visa requires at least a bachelor’s degree and is principally used for high-skilled jobs that tech companies can struggle to fill.<\/p>\n
Critics of the program, including many US tech workers, argue it allows firms to suppress wages and sideline Americans who could do the jobs.<\/p>\n
They say many overseas workers are willing to work for as little as $US60,000 annually, well below the $US100,000-plus salaries typically paid to US tech workers.<\/p>\n
But supporters, including Tesla chief executive Elon Musk, say the visa program brings in the highly skilled workers needed to fill talent gaps and keep firms competitive.<\/p>\n
<\/p>\n
Elon Musk says the H-1B visa brings in highly skilled workers essential to filling talent gaps.
\n\u00a0 (Reuters: Chip Somodevilla)<\/p>\n
Why has the price for H-1B visas increased?<\/p>\n
US Commerce Secretary Howard Lutnick hopes the price hike will dissuade tech companies from preferencing overseas workers over Americans.<\/p>\n
“If you’re going to train people, you’re going to train Americans. Stop bringing in people to take our jobs,” he told reporters.<\/p>\n
“If you have a very sophisticated engineer and you want to bring them in … then you can pay $US100,000 a year for your H-1B visa.”<\/p>\n
He said the change will likely result in far fewer H-1B visas than the 85,000 annual cap allows because “it’s just not economic anymore”.<\/p>\n
Who will be impacted?<\/p>\n
India will likely be most impacted by this price increase, accounting for 71 per cent of approved beneficiaries of H-1B visas last year.<\/p>\n
China was a distant second at 11.7 per cent, according to government data.<\/p>\n
Tech heavyweights may also feel the pinch.<\/p>\n
This year, Amazon was by far the top recipient of H-1B visas with more than 10,000 awarded, followed by Tata Consultancy, Microsoft, Apple and Google.<\/p>\n
<\/p>\n
Amazon was the top recipient of H-1B visas this year. (ABC News: Kyle Harley)<\/p>\n
What has been the response?<\/p>\n
We’re yet to hear from the biggest tech companies.<\/p>\n
Representatives for Amazon, Apple, Google and Meta did not immediately respond to requests for comment on Friday, while Microsoft declined to comment.<\/p>\n
However, Mr Trump insisted the tech industry would not oppose the move, with Mr Lutnick claiming “all the big companies are on board”.<\/p>\n
“We’ve spoken to them,” he said.<\/p>\n
<\/p>\n
Howard Lunick also claimed “all the big companies are on board”. (Reuters: Toby Melville)<\/p>\n
Meanwhile critics of the H-1B visas have celebrated the move, with advocacy group US Tech Workers calling it “the next best thing” to abolishing the visas altogether.<\/p>\n
What are the concerns?<\/p>\n
But the move has also attracted significant concern.<\/p>\n
Deedy Das, partner at venture capital firm Menlo Ventures, fears the new fees will discourage the “world’s smartest talent” from choosing to work in the US.<\/p>\n
“It drastically reduces [the United States’] ability to innovate and grow the economy,” he said on X.<\/p>\n
<\/p>\n
Tech experts worry the fees will discourage the “world’s smartest talent” from working in the US. (ABC News: Danielle Bonica)<\/p>\n
Some analysts worry the fee may force companies to move some high-value work overseas, hampering America’s position in the high-stakes artificial intelligence race with China.<\/p>\n
“In the short-term, Washington may collect a windfall,” eMarketer analyst Jeremy Goldman said.<\/p>\n
“In the long-term, the US risks taxing away its innovation edge, trading dynamism for short-sighted protectionism.”<\/p>\n
Meanwhile Doug Rand, a senior official at US Citizenship and Immigration Services during the Biden administration, said the proposed fee increase was “ludicrously lawless”.<\/p>\n
“This isn’t real policy \u2014 it’s fan service for immigration restrictionists,” Mr Rand said.<\/p>\n
“Trump gets his headlines, and inflicts a jolt of panic, and doesn’t care whether this survives first contact with the courts.”<\/p>\n
<\/p>\n
Donald Trump and Howard Lutnick unveil the new “gold card” visa. (AP: Alex Brandon)<\/p>\n
What is the ‘gold card’ visa?<\/p>\n
Mr Trump also announced he will start selling a $US1 million “gold card” visa with a path to US citizenship after vetting.<\/p>\n
This will replace the current EB-1 and EB-2 visa programs for people who are of “exceptional value” to the United States, Mr Lutnick said.<\/p>\n
A “Trump Platinum Card” will also be available for $US5 million.<\/p>\n
This will allow foreigners to spend up to 270 days in the US without being subject to US taxes on non-US income.<\/p>\n
Mr Lutnick said these gold and platinum cards would replace employment-based visas that offer paths to citizenship, including for professors, scientists, artists and athletes.<\/p>\n
He said the H-1B fees and gold card could be introduced by the president \u2014 but the platinum card needs congressional approval.<\/p>\n
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