US President Donald Trump on Friday signed a proclamation imposing a new $100,000 annual application fee for H-1B visas, marking one of the most sweeping overhauls of the programme since its creation in 1990. The move is expected to hit Indian workers the hardest, as they account for the majority of approvals.
US Commerce Secretary Howard Lutnick said companies will now be required to pay $100,000 annually for each visa. “A hundred thousand dollars a year for H-1B visas, and all of the big companies are on board. We’ve spoken to them,” Lutnick said while announcing the hike.
He added that the policy aims to prioritise American graduates. “If you’re going to train somebody, train one of the recent graduates from one of our great universities. Train Americans. Stop bringing in people to take our jobs.”
Trump defended the decision, insisting the technology sector would benefit from the new visa fee. “The technology sector will support this change — they’re going to be very happy with the new visa fee,” he said.
Representatives of major US technology firms including Amazon, Apple, Google and Meta did not immediately respond to requests for comment.
The H-1B system, used primarily by technology companies to fill roles in science, engineering and mathematics, has long been criticised by Trump and his allies as a mechanism for undercutting American wages.
Currently, applicants pay only a modest fee to enter the lottery and, if selected, additional charges that can total several thousand dollars, usually covered by employers.
According to official data, Indian nationals accounted for 71 per cent of all approved H-1B visas, while Chinese workers made up 11.7 per cent. The US issues 85,000 visas annually through a lottery system.
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This year, Amazon received the most approvals — over 10,000 — followed by Tata Consultancy, Microsoft, Apple and Google. California continues to host the largest concentration of H-1B workers, according to the US Citizenship and Immigration Services (USCIS).
Some American tech workers argue that the system suppresses wages by allowing companies to bypass qualified US job seekers. The issue has long divided opinion within the industry and the wider labour market.
Aaron Reichlin-Melnick, policy director at the American Immigration Council, questioned the legality of the new fee. “Congress has only authorised the government to set fees to recover the cost of adjudicating an application,” he wrote on Bluesky.
The move forms part of the Trump administration’s broader efforts to restrict or raise revenue from legal immigration.
Just last month, the US launched a pilot programme allowing consular officers to demand bonds of up to $15,000 for tourist and business visas from countries with high overstay rates or weaker vetting systems.
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