Has Trump Really Tightened H-1B Rules and Introduced a $100,000 Annual Fee?

Washington, Sep 20 (NationPress) In a significant blow to Indian technology professionals and leading tech firms in the United States, President Donald Trump has enacted a proclamation aimed at severely limiting the H-1B visa program.

As per the new regulations, every application will be subject to an annual fee of $100,000—a measure designed to reduce the excessive use of the visa program and promote the employment of domestic workers.

While signing the proclamation on Friday at the White House, Trump expressed that the “goal is to encourage the hiring of American workers.”

“We require skilled labor. We need exceptional workers, and this initiative will help ensure that,” he stated.

Commerce Secretary Howard Lutnick supported the decision, asserting that the policy would deter companies from employing foreign labor.

“The intent is clear: no longer will large tech firms or other major corporations train foreign labor at the expense of American workers. They will be required to pay the government $100,000, alongside the employee's salary. It simply won't make financial sense. They should be training recent graduates from our outstanding universities,” he elaborated.

Lutnick also indicated that the visa could only be renewed for a maximum of six years and would apply to both new and renewal applications.

“The individual must be either invaluable to the company and the nation, or they will leave. We must cease the practice of allowing individuals to enter the country on these visas that were previously granted without cost,” he further commented.

The proclamation stated that the H-1B visa program has been “systematically misused to replace, rather than supplement, American labor with lower-paid, less-skilled workers” and is detrimental to both “our economic and national security.”

Under the new rules, the Secretary of Labor will initiate measures to adjust the prevailing wage standards as well.

Trump and Lutnick both claimed that all major tech corporations are “in favor” of this initiative.

“They're enthusiastic about it. They genuinely appreciate it. They need it. I believe they will be quite satisfied. Everyone will benefit, and we will retain individuals in our nation who will be highly productive,” Trump remarked.

Additionally, President Trump enacted an executive order establishing a gold card program, allowing individuals to obtain a visa for $1 million and corporations for $2 million.

The H-1B visa program, limited to 85,000 new visas each year, enabled U.S. companies to recruit skilled foreign labor in areas such as technology and engineering. This latest directive is anticipated to affect significant American tech enterprises.

Data from Pew Research indicates that Indian-born workers accounted for approximately 73 percent of all approved H-1B visas in 2023, followed by China at 12 percent, largely due to a backlog in approvals and a high influx of skilled professionals from India.

In August, the Department of Homeland Security proposed reforms to the current system by eliminating the lottery system in favor of a “weighted selection process.”

The U.S. Department of Justice (DoJ) has also escalated its examination of hiring practices related to the H-1B visa program, urging workers and employers to report cases where U.S. citizens are unjustly overlooked in favor of foreign visa holders. This initiative is spearheaded by Harmeet Dhillon, the India-born Assistant Attorney General of Civil Rights at the DoJ.

Dhillon announced in August that the department has initiated “multiple” investigations and has already acted against “some” employers. “We invite Americans to reach out to us with information,” she encouraged, promoting the DoJ hotline.

After the elections in December 2024, Trump previously expressed support for H-1B visas, stating he is a “strong supporter” of the program and had utilized it in the past.

"I have many H-1B visas in my properties. I truly believe in H-1B. I have utilized it numerous times. It’s an excellent program,” he had commented.

Trump’s remarks came amid opposition from far-right activists regarding H-1B visas. Tesla CEO and former Trump aide Elon Musk had also pledged to vigorously defend H-1B visas.