Former U.S. President Donald Trump has proposed a new rule that would require companies to pay $100,000 annually for H-1B visas. The move could heavily affect the technology sector, which depends on skilled workers from countries like India and China.
Since returning to the political spotlight, Trump has renewed his push for stricter immigration policies. His proposal to reshape the H-1B visa program marks one of the most high-profile efforts to reduce temporary work visas.
Commerce Secretary Howard Lutnick said the plan aims to prioritize American workers. He argued that companies should train local graduates instead of relying on foreign talent.
Critics of the program, including some U.S. tech workers, believe H-1B visas allow firms to keep wages low and push Americans out of jobs. Supporters, however, argue the program fills critical skill gaps and boosts innovation. Tesla CEO Elon Musk, who once held an H-1B visa himself, has spoken in favor of keeping the system open.
Analysts warn the new fees could force companies to move high-value work overseas. This, they say, could weaken America’s ability to compete in fields like artificial intelligence. “In the short term, the government may collect revenue, but in the long term, the U.S. risks losing its innovation edge,” said eMarketer analyst Jeremy Goldman.
India remains the largest beneficiary of H-1B visas, with China second. Major firms like Amazon, Microsoft, and Meta collectively received tens of thousands of approvals in 2025 alone.
Shares of tech outsourcing firms such as Infosys and Wipro fell after the announcement. Some experts also questioned the legality of the proposed fee, noting that visa charges are usually set to cover administrative costs, not raise revenue.
Under the current system, employers pay only a few thousand dollars in fees for each visa. Trump’s proposal would increase costs significantly, especially for startups and smaller tech firms.
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