The U.S. visa policy is becoming increasingly stringent for foreign applicants, as President Donald Trump has enacted a new executive order imposing an annual fee of $100,000 (£74,000) for those applying for the H-1B visa program, which is designed for skilled foreign workers.
The order cites “abuse” of the program and will limit entry unless the fee is paid.
Critics have long contended that H-1B visas undermine the American labor market, while supporters, including billionaire Elon Musk, argue that they help the U.S. attract top global talent.
In a separate directive, Trump introduced a new “gold card” to expedite visas for certain immigrants in exchange for fees starting at £1 million.
The new order is set to take effect on September 21 and will apply only to new applications.
However, companies will be required to pay the same fee for each applicant over a six-year period, according to U.S. Commerce Secretary Howard Lutnick.
“The company must decide whether the individual is worth a $100,000 annual payment to the government, or if they should return home and hire an American instead,” he stated, adding that “all major companies are in agreement.”
Since 2004, the number of H-1B applications has been limited to 85,000 annually.
Previously, H-1B visas incurred various administrative fees totaling around $1,500.
Data from U.S. Citizenship and Immigration Services (USCIS) reveals that applications for H-1B visas for the upcoming fiscal year have dropped to approximately 359,000, marking a four-year low.
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Last fiscal year, Amazon was the largest recipient of H-1B visas, followed by tech giants such as Tata, Microsoft, Meta, Apple, and Google, according to government statistics.
Late Friday, Amazon advised its employees with H-1B visas already in the U.S. to stay put.
An internal memo, reviewed by Business Insider, instructed those outside the U.S. to “try to return before tomorrow’s deadline if possible.”
Those unable to return before the order takes effect were advised to refrain from attempting to re-enter the U.S. “until further guidance is provided,” according to the company.
Meanwhile, India’s leading trade organization, Nasscom, expressed concern over the new rule, noting that the one-day deadline has created “significant uncertainty for businesses, professionals, and students worldwide.”
According to Reuters, India was the largest recipient of H-1B visas last year, accounting for 71% of approved applications, while China followed with 11.7%.
Tahmina Watson, a founding attorney at Watson Immigration Law, told the BBC that this ruling could be a “nail in the coffin” for many of her clients, primarily small businesses and startups.
“Almost everyone will be priced out. This $100,000 entry fee will have a devastating impact,” she remarked, highlighting the challenges faced by many small enterprises.
