In a dramatic and sweeping overhaul of the nation’s immigration system, the Trump administration has introduced a new and unprecedented $100,000 fee for companies seeking to sponsor skilled worker visas. The move, announced via a proclamation on Friday, targets the H-1B visa program, a system long relied upon by the tech sector, and is being framed as an aggressive effort to protect American jobs and curb what the administration calls systemic abuse.
The new fee, which took effect immediately, requires employers to pay the $100,000 for each new H-1B applicant coming from abroad. The administration has clarified that the fee is a one-time payment, though initial reports had suggested it would be an annual charge. Still, the immense financial barrier represents a staggering increase from the current fees, which typically range from a few thousand to around $5,000. While the proclamation does not apply to current H-1B visa holders already in the U.S., it has prompted companies like Microsoft to issue an urgent advisory urging employees to avoid international travel and return to the country before the new rule took effect.
The administration’s rationale for the change is rooted in its “America First” agenda. According to White House staff secretary Will Scharf, the H-1B program, originally designed to attract exceptional foreign talent, has been exploited to replace American workers with “lower-paid, lower-skilled” labor. The administration argues that the new fee will force companies to hire only the most exceptional candidates who are truly indispensable, thereby creating more opportunities for American graduates. President Trump stated that this is not only an economic issue but also a matter of national security, citing investigations into visa fraud and other illicit activities.
The reaction from the tech community has been one of shock and alarm. Critics warn that the steep fee will have a chilling effect on innovation and could lead to a significant “brain drain” as highly skilled foreign workers look to other countries. While large tech giants like Amazon and Microsoft may be able to absorb the new costs for a select few key employees, smaller startups and companies with a high reliance on foreign talent could be hit hardest. Critics also argue that this move could hamper the U.S.’s position in the global race for innovation, particularly in fast-moving fields like artificial intelligence.
For a system that has long been a key part of the U.S. economy, the new fee represents a momentous shift, and is a clear signal that the administration is prioritizing protectionism over global talent.