The Trump administration has announced a significant change to the H-1B visa program, imposing an annual fee of $100,000 on companies seeking to sponsor foreign workers. This move, revealed on Friday, September 19, 2025, is intended to discourage the hiring of entry-level employees and incentivize the recruitment of highly skilled workers, such as "great engineers" and "impressively detailed executives". Commerce Secretary Howard Lutnick stated that the fee would apply each year for the visa's duration, which is typically three years with the option to renew for a total of six.
The H-1B visa program allows US companies to employ foreign workers with specialized skills in fields like science and technology. Tech companies are the largest beneficiaries, but employers in manufacturing, finance, education, retail, and healthcare also utilize the program. Approximately 85,000 new H-1B visas are available each year, with universities being exempt from the cap. In the past, the government has received around 425,000 H-1B visa petitions annually, with recipients selected through a lottery. Current application fees are significantly lower, rarely exceeding $5,000.
The new $100,000 fee marks a dramatic increase in costs for employers. A company sponsoring 10 H-1B workers annually could face $1 million in additional expenses. This could lead to budget revisions, adjustments to compensation packages, and increased scrutiny in filings for HR departments.
Former NITI Aayog CEO Amitabh Kant has criticized the decision, stating that the increased H-1B visa fee will stifle innovation in the United States while simultaneously boosting India's IT and tech sectors. Kant's statement reflects concerns that the policy will negatively impact the US's competitive edge and create opportunities for other countries.
The impact of this policy on international professionals, particularly those in STEM fields, could be substantial. The $100,000 fee may render the H-1B visa inaccessible for many, especially early-career workers, recent graduates, and those in lower-paying industries. Students on Optional Practical Training (OPT) hoping to transition to H-1B status may also face a more selective job market.
Some experts believe that the higher fee, along with increased wage standards, could improve the H-1B system by preventing companies from exploiting foreign-born labor. However, others worry about potential labor shortages and reduced diversity in the U.S. workforce if international talent seeks employment elsewhere.
The Trump administration is also planning to launch a "gold card" visa for wealthy foreigners who can pay $1 million for US permanent residency. This initiative and the increased H-1B fees are part of a broader effort to restrict legal immigration to the U.S. It remains to be seen how these changes will ultimately affect the American economy and its position in the global market. The new rule is scheduled to take effect on September 21 and last for 12 months.
