US President Donald Trump has signed an executive order that will add a $100,000 (£74,000) annual fee for applicants to the H-1B visa programme for skilled foreign workers.
Trump's order mentions abuse of the programme and will restrict entry unless payment is made. Critics have long argued that H-1Bs undercut the American workforce, while supporters - including billionaire Elon Musk - argue it allows the US to attract top talent from around the world.
In another order, Trump set up a new gold card to fast-track visas for certain immigrants in exchange for fees starting at £1m.
Trump's order is due to come into force on 21 September. It would only apply to new requests, but companies would have to pay the same amount for each applicant for six years, US Commerce Secretary Howard Lutnick said.
The company needs to decide... is the person valuable enough to have a $100,000-a-year payment to the government, or they should head home, and they should go hire an American, he said, adding: All of the big companies are on board.
Since 2004, the number of H-1B applications has been capped at 85,000 per year. Until now, H-1B visas have carried various administrative fees totalling around $1,500.
Data from US Citizenship and Immigration Services (USCIS) shows that applications for H-1B visas for the next fiscal year fell to about 359,000 - a four-year low.
The greatest beneficiary of the programme the previous fiscal year was Amazon, followed by tech giants Tata, Microsoft, Meta, Apple, and Google, according to government statistics.
Late on Friday, Amazon told employees with H-1B visas who were already in the US to remain there. According to an internal advisory, the company instructed those abroad to try to return before tomorrow's deadline if possible. Anyone unable to make it back before the order takes effect should avoid attempting US re-entry until further guidance is provided, the company added.
India's leading trade body Nasscom expressed concern over the edict, noting that the one-day deadline created considerable uncertainty for businesses, professionals, and students across the world.
According to government data cited by Reuters, India was the largest beneficiary of H-1B visas last year, accounting for 71% of approved applications, with China coming in second at 11.7%.
Tahmina Watson, a founding attorney at Watson Immigration Law, described the ruling could be a nail in the coffin for many clients, particularly small businesses and start-ups. Almost everyone's going to be priced out. This $100,000 as an entry point is going to have a devastating impact, she stated, emphasizing that many employers sponsor foreign talent due to an inability to fill positions domestically.
Jorge Lopez, chair of the immigration and global mobility practice group at Littler Mendelson PC, warned that a $100,000 fee will put the brakes on American competitiveness in the tech sector and all industries. Some companies may even consider relocating operations outside the US, he added, although this can present practical challenges.
The debate over H-1Bs had previously caused splits within Trump's team and supporters, with contrasting views on the immigration policy. Trump previously recognized the complexities of the argument, suggesting the need for a balance between attracting talent and protecting American workers.
Trump's order mentions abuse of the programme and will restrict entry unless payment is made. Critics have long argued that H-1Bs undercut the American workforce, while supporters - including billionaire Elon Musk - argue it allows the US to attract top talent from around the world.
In another order, Trump set up a new gold card to fast-track visas for certain immigrants in exchange for fees starting at £1m.
Trump's order is due to come into force on 21 September. It would only apply to new requests, but companies would have to pay the same amount for each applicant for six years, US Commerce Secretary Howard Lutnick said.
The company needs to decide... is the person valuable enough to have a $100,000-a-year payment to the government, or they should head home, and they should go hire an American, he said, adding: All of the big companies are on board.
Since 2004, the number of H-1B applications has been capped at 85,000 per year. Until now, H-1B visas have carried various administrative fees totalling around $1,500.
Data from US Citizenship and Immigration Services (USCIS) shows that applications for H-1B visas for the next fiscal year fell to about 359,000 - a four-year low.
The greatest beneficiary of the programme the previous fiscal year was Amazon, followed by tech giants Tata, Microsoft, Meta, Apple, and Google, according to government statistics.
Late on Friday, Amazon told employees with H-1B visas who were already in the US to remain there. According to an internal advisory, the company instructed those abroad to try to return before tomorrow's deadline if possible. Anyone unable to make it back before the order takes effect should avoid attempting US re-entry until further guidance is provided, the company added.
India's leading trade body Nasscom expressed concern over the edict, noting that the one-day deadline created considerable uncertainty for businesses, professionals, and students across the world.
According to government data cited by Reuters, India was the largest beneficiary of H-1B visas last year, accounting for 71% of approved applications, with China coming in second at 11.7%.
Tahmina Watson, a founding attorney at Watson Immigration Law, described the ruling could be a nail in the coffin for many clients, particularly small businesses and start-ups. Almost everyone's going to be priced out. This $100,000 as an entry point is going to have a devastating impact, she stated, emphasizing that many employers sponsor foreign talent due to an inability to fill positions domestically.
Jorge Lopez, chair of the immigration and global mobility practice group at Littler Mendelson PC, warned that a $100,000 fee will put the brakes on American competitiveness in the tech sector and all industries. Some companies may even consider relocating operations outside the US, he added, although this can present practical challenges.
The debate over H-1Bs had previously caused splits within Trump's team and supporters, with contrasting views on the immigration policy. Trump previously recognized the complexities of the argument, suggesting the need for a balance between attracting talent and protecting American workers.
