US Foists $100,000 Fee on H-1B Visas, Tech Industry Rattled

The US tech industry is reeling after President Donald Trump signed an executive order imposing a $100,000 annual fee on companies seeking H-1B visas for skilled foreign workers.

The new policy, effective immediately, aims to prioritize high-skilled and high-paid foreign talent while protecting American workers.

Commerce Secretary Howard Lutnick argues that the fee will ensure companies only sponsor workers with exceptional skills.

“Companies need to decide — is the person valuable enough to have a $100,000-a-year payment to the government, or should they head home and go hire an American?” He asked

However, critics argue that this measure could severely undermine US competitiveness in the global economy.

The tech industry has long relied on the H-1B visa program to attract highly educated foreign talent. Major tech companies, including Amazon, Microsoft, and Meta, have been among the largest beneficiaries of the program.

Amazon alone received approval for over 12,000 H-1B visas in early 2025. Critics warn that the new fee will disproportionately affect small and medium-sized companies, forcing them to reconsider their hiring strategies.

Immigration attorney Tahmina Watson predicts that the fee will “price out” many companies, limiting access to top talent and stifling innovation.

“This $100,000 as an entry point is going to have a devastating impact,” she said. “Almost everyone’s going to be priced out. Many small or medium-sized companies simply can’t find qualified Americans to do the job.”

The executive order also introduces a “gold card” system, offering fast-track immigration for high-net-worth individuals in exchange for fees starting at $1 million.

This move is seen as a way to attract top talent and capital to the US while generating revenue.

The tech industry has reacted cautiously to the new policy, with some expressing concerns about the potential impact on innovation and competitiveness.

Deedy Das, partner at Menlo Ventures, notes that adding new fees creates a disincentive to attract top talent to the US, potentially reducing the country’s ability to innovate and grow its economy.

As the US government seeks to protect American workers, it remains to be seen how this policy will affect the tech industry’s ability to compete globally.

One thing is certain, however: the $100,000 fee will significantly alter the landscape of the H-1B visa program.