Trump Imposes Hefty $100,000 Fee for H-1B Visas, Potentially Disrupting the Tech Sector in Washington
In a move targeting skilled foreign workers in STEM fields, President Donald Trump announced a new $100,000 annual fee for H-1B visas. This decision, part of the administration's ongoing immigration crackdown, comes with uncertainty about its implementation and potential exemptions.
The proclamation, signed on Friday, specifically calls out tech companies and accuses the industry of manipulating the system, potentially harming American workers in computer-related fields. However, it's important to note that small and medium-sized companies with fewer than 50 employees and those with a high proportion of American workers were exempted from the higher H-1B visa fees.
The H-1B visa program, established in 1990 to address a potential labor shortage of skilled workers, allows companies to sponsor workers in specialty occupations like scientists, engineers, and medical technicians. The program is extremely competitive, with far more prospective workers than visas available.
Microsoft, though not explicitly named, was referenced in the proclamation as a company that approved over 5,000 H-1B workers in FY 2025, around the same time it announced a series of layoffs totaling more than 15,000 employees. However, Microsoft stated earlier this summer that layoffs and visas were in no way related. Similarly, the new fee seemingly affects Amazon, as the company let go of more than 27,000 workers between 2022 and 2023.
Employers need to prove they've found it hard to fill the job and must pay at least the average market wage. Across the U.S., employees at Amazon accounted for the most H-1B applications, with over 10,000. In fiscal year 2025, Washington state received about 9,000 approved H-1B visa applications, with a majority employed at Microsoft.
H-1B recipients also work in other industries, like manufacturing and education. The program allows companies to hire foreign workers when they can't find enough American citizens or permanent residents to hire, but it's worth noting that companies might choose to hire someone to do the same work in some other country instead of paying the $100,000 fee.
Trump also signed a separate order on Friday to establish a federal 'Gold Card' program that would expedite the visa process for those who pay $1 million or for whom a company sponsoring them pays $2 million on their behalf.
The president's action may face legal challenges, as many previous orders have through lawsuits from several states and organizations. Much remains uncertain about how the $100,000 fee would be implemented and if certain groups might be exempt. The order may have limits for globalized tech behemoths, as they have the option of hiring foreign workers without bringing them to the United States.
This new turn in Trump's immigration agenda takes aim at skilled foreign workers, adding another layer of complexity to the ongoing immigration debate in the United States.
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