New fee sparks panic across tech sector
Donald Trump has imposed a $100,000 fee on H-1B visa applications. Big Tech is worried.
US President Donald Trump has signed an executive action imposing a $100,000 fee on H-1B visa applications, a move that industry leaders warn could severely disrupt the technology sector’s access to skilled foreign workers.
The order, which took effect on 21 September, bars H-1B holders from entering or re-entering the US unless their petition includes the new payment. The H-1B programme, capped at 85,000 visas annually, is a critical route for companies such as Google, Amazon and Microsoft to fill high-demand technical roles.
The announcement has triggered widespread alarm within the tech industry. Internal memos leaked from several of Silicon Valley’s biggest firms urged foreign employees on H-1B visas to return to the US immediately to avoid being stranded abroad. Workers already in the US have been advised not to travel internationally “until further notice”.
Commerce Secretary Howard Lutnick defended the policy, stating the fee would ensure “only the very best” workers come to the US. He confirmed discussions are ongoing over whether the $300,000 total would be charged upfront or in annual instalments.
Trump described the policy as a way to prioritise American workers while still leaving “a pathway for great talent” to enter the country. However, the sudden change risks worsening talent shortages in sectors already struggling to recruit.
“Tech companies depend on H-1B visas to remain competitive and innovative,” said one industry analyst. “This fee will price out smaller firms and push more talent to Canada and Europe.”
Alongside the fee hike, Trump also unveiled a so-called “gold card” programme, offering fast-tracked US residency to wealthy immigrants who pay $1 million individually or $2 million via corporate sponsorship. Critics say the measure shifts the focus of immigration away from skills and towards wealth.
While Trump has oscillated in his stance on the H-1B programme, praising it last year as a source of “great workers”, his latest move marks a sharp escalation in efforts to restrict legal immigration.