The U.S. government has made it much more expensive for companies to hire skilled foreign workers.
On Friday, President Donald Trump signed a new order that requires employers to pay a $100,000 annual fee for every new H-1B visa application. Until now, companies only had to pay a $215 lottery registration fee.
American companies use H-1B visas to bring in foreign talent for jobs in technology, engineering, medicine, and other specialized fields. Every year, the program allows for 65,000 new visas, plus an additional 20,000 for advanced degree holders from U.S. universities. The visas usually last three years and can be extended.
The White House says the higher fee is needed to stop “abuse of the program” and to protect American workers. Officials argue that too many companies rely on H-1B workers while cutting U.S. jobs. The order also asks the Labor Department to raise the minimum wages for H-1B employees so they do not undercut local salaries.
However, the tech industry is strongly against the move. Many Silicon Valley leaders warn that the U.S. will lose top global talent. Elon Musk, who first worked in America on an H-1B visa, said the program helped create companies like Tesla and SpaceX. Industry groups such as the National Venture Capital Association argue that limiting H-1Bs will hurt innovation and stop many immigrants from starting successful companies.
The proclamation includes some flexibility. Employers may get an exemption from the $100,000 fee if the worker is considered important for “national interest.” Still, experts believe this huge cost will discourage most companies, especially startups, from hiring foreign professionals.
Frequently Asked Questions (FAQ) About the New H-1B Visa Fee
1. What is the new H-1B visa fee?
The Trump administration has introduced a $100,000 annual fee for each new H-1B visa petition. This is a huge increase from the previous $215 lottery registration fee.
2. When does the new fee start?
The new fee takes effect immediately for applicants outside the United States.
3. Who will be affected by the fee?
The fee mainly affects U.S. companies that want to hire foreign workers under the H-1B program. It could hit small businesses and startups the hardest, as large corporations may still afford it.
4. Are there any exemptions?
Yes. The government can waive the fee on a case-by-case basis if the worker is considered critical to U.S. national interests.
5. Why did the U.S. raise the fee?
The White House says the increase is meant to prevent abuse of the H-1B program and to protect American jobs by discouraging companies from replacing U.S. workers with cheaper foreign labor.
If this article helped you, please consider supporting our work. Every small contribution keeps Abijita.com independent and running.
6. How will this impact the tech industry?
Tech leaders warn that the policy will drive skilled workers to other countries like Canada and the UK, hurting U.S. innovation and slowing down immigrant-founded startups.
