A new proclamation signed by President Donald Trump has introduced an unprecedented level of sticker shock for U.S. companies seeking to hire foreign talent. The rule change imposes an annual fee of $100,000 for each H-1B visa, a dramatic escalation from the current fee structure, which typically amounts to several thousand dollars for a multi-year period. This policy is set to deal a major blow to the tech industry, a sector built on a global talent pool.
The administration is framing this massive fee hike as a tool to compel companies to prioritize American job candidates. “Train Americans. Stop bringing in people to take our jobs,” Commerce Secretary Howard Lutnick declared at a White House event. The message is clear: companies must now make a significant financial calculation, weighing the immense cost of a foreign worker against investing in the domestic labor market.
For context, the current system involves a small lottery entry fee, followed by several thousand dollars in legal and processing fees upon selection for a visa that lasts three to six years. The new rule not only increases the amount exponentially but also makes it an annual recurring cost. This could translate into an additional $300,000 to $600,000 in fees over the typical visa lifespan for a single employee, a cost prohibitive for all but the largest and most desperate companies.
This financial barrier is expected to have a disproportionate impact on smaller tech firms and startups, which often operate on tight budgets and rely on H-1B visas to attract specialized talent they cannot find locally. Venture capitalists have warned that such a policy could stifle innovation by making it impossible for emerging companies to compete for the world’s best engineers, programmers, and scientists.
The proclamation’s legal viability remains a major unanswered question. Critics argue the president cannot unilaterally invent such a fee, as immigration law dictates that fees should only cover the cost of processing. This has led to widespread anticipation of lawsuits from business groups and immigration advocates aiming to block the rule, creating a landscape of uncertainty for thousands of employers and visa applicants.