“Pay to Stay”: H-1B Visas Hit With $100K Annual Charge

Trump Signs Proclamation Imposing $100,000 Annual Fee on H-1B Visas: A Blow to the Tech Industry On Friday, former President Donald Trump signed a sweeping proclamation that would impose an unprecedented $100,000 annual fee on H-1B visa applications. The move has sent shockwaves through the U.S. tech industry, which heavily depends on skilled workers from India and China.

What the Proclamation Means

The new policy requires employers to pay $100,000 each year for every H-1B visa holder they sponsor. This fee is a drastic departure from the current system, which involves a relatively modest set of processing and filing fees. Critics warn that the new cost burden could reshape the American labor market, particularly in technology, education, engineering, and healthcare.Howard Lutnick, the U.S. commerce secretary, defended the measure during a press briefing, stating that the administration had already secured the support of major corporations. “All the big companies are on board,” he said. “If you’re going to train somebody, train recent graduates from our great universities. Stop bringing in people to take our jobs.”

Why the Tech Industry Is Concerned

The U.S. tech sector is the largest consumer of H-1B visas, with companies like Amazon, Microsoft, and Meta Platforms employing tens of thousands of workers through the program. In just the first half of 2025, Amazon had over 10,000 H-1B approvals, while Microsoft and Meta each exceeded 5,000.Industry leaders argue that the H-1B program is essential for filling talent gaps in fields like software development, artificial intelligence, and advanced engineering. Tesla CEO Elon Musk, himself once an H-1B holder, has voiced strong support for the program, calling it a pipeline for the “world’s smartest talent.”

Venture capitalist Deedy Das warned that the new fee would deter top global talent from coming to the U.S. “If the U.S. ceases to attract the best talent, it drastically reduces its ability to innovate and grow the economy,” he wrote on X.

Legal Questions and Criticism

Immigration experts have already raised alarms about the legality of the move. Aaron Reichlin-Melnick of the American Immigration Council argued that the president lacks authority to impose such a fee. “The president has literally zero legal authority to impose a $100,000 fee on visas. None. Zip. Zilch,” he stated.

Under current law, fees are only meant to cover administrative processing costs, not to generate revenue or reshape immigration flows. If challenged, Trump’s proclamation may face significant hurdles in federal court, similar to previous attempts to restrict the H-1B program during his first term.

Potential Impact on Startups and Small Businesses

While large corporations may be able to absorb the new fees, smaller tech firms and startups are likely to struggle. The added financial burden could prevent them from hiring specialized talent, stifling innovation and growth in the most dynamic corners of the economy.

Conclusion

Trump’s proclamation represents one of the most aggressive attempts yet to reshape U.S. skilled immigration policy. While the administration frames it as a measure to protect American workers, critics argue it risks undermining U.S. competitiveness in the global economy. With legal challenges expected, the future of the $100,000 H-1B fee is uncertain — but its announcement has already sparked intense debate across business, legal, and political circles.