Trump Imposes Staggering $100,000 Annual Fee on H-1B Visas, Jolting Tech Industry

President Donald Trump signed a proclamation on Friday, enacting an unprecedented annual fee of $100,000 on H-1B visa applications. This drastic measure is poised to deliver a significant blow to the US tech industry, which heavily relies on skilled workers from countries like India and China.

Commerce Secretary Howard Lutnick confirmed the new fee at a press briefing, stating that major companies had been informed. Lutnick emphasized the administration’s rationale: “Train Americans. Stop bringing in people to take our jobs.” The move intensifies a long-standing conflict with the tech sector, a major contributor to Trump’s presidential campaigns, which depends more than any other industry on H-1B visa holders for critical roles in computing, engineering, and healthcare.

In the first half of 2025 alone, companies like Amazon secured over 10,000 H-1B visa approvals, with Microsoft and Meta Platforms each receiving more than 5,000. The H-1B program typically grants 85,000 visas annually, including 20,000 for advanced degree holders, to bring temporary foreign workers into specialized fields.

While critics argue the program suppresses wages, supporters like Tesla CEO Elon Musk contend it fills vital talent gaps. However, the new $100,000 fee has drawn immediate condemnation. Deedy Das of Menlo Ventures warned on X that such a fee “creates disincentive to attract the world’s smartest talent to the US,” potentially hindering innovation and economic growth. Immigration experts, including Aaron Reichlin-Melnick of the American Immigration Council, are questioning the legality of the executive branch imposing such a substantial fee, citing a lack of explicit congressional authority beyond recovering processing costs. Current H-1B fees, typically paid by employers, amount to several thousand dollars, not an annual six-figure sum.

This latest action follows other recent efforts by the Trump administration to tighten legal immigration, including a pilot program for up to $15,000 bonds on certain tourist visas and a June travel ban affecting 19 nations. Previous attempts by Trump to limit H-1B access were blocked in federal courts.

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