US President Donald Trump Imposes $100,000 Annual Fee on H-1B Visas

Trump Administration Introduces Steep H-1B Visa Fee

US President Donald Trump signed a proclamation on Friday, September 19, 2025, mandating a $100,000 annual fee for H-1B visas. The measure, set to take effect on September 21, 2025, is poised to significantly alter the landscape for foreign professionals seeking to work in the United States, particularly those from India.

The administration stated that the substantial fee increase is intended to ensure that individuals entering the country on H-1B visas are 'actually very highly skilled' and do not displace American workers. White House staff secretary Will Scharf described the H-1B program as 'one of the most abused visa systems' and emphasized that the proclamation aims to bring in 'truly extraordinary people'.

Details of the New Fee Structure

Under the new directive, companies sponsoring H-1B applicants will be responsible for paying the $100,000 annual fee. This payment is in addition to existing, more modest fees associated with the visa application process. US Commerce Secretary Howard Lutnick confirmed the annual nature of the fee, stating it would apply each year during the visa's validity period, which can be up to six years. Lutnick also claimed that 'all the big companies' were in agreement with the new fee.

The H-1B visa program, established in 1990, allows US companies to employ foreign workers in specialized occupations, typically requiring theoretical or technical expertise in fields such as science, technology, engineering, and mathematics (STEM). The program issues 85,000 visas annually through a lottery system.

Significant Impact on Indian Professionals and Tech Sector

The proclamation is expected to have a profound impact on Indian professionals, who are the primary beneficiaries of the H-1B visa program. Between October 2022 and September 2023, 72 percent of the nearly 400,000 H-1B visas issued went to Indian nationals. The increased cost could make it 'prohibitively expensive' for tech companies to hire Indian professionals, potentially leading to a reduction in their recruitment.

Immigration attorneys and companies have cautioned H-1B visa holders currently outside the US to return immediately, fearing they could be stranded if they do not re-enter before the September 21 effective date. Critics of the policy, including some immigration experts, have questioned the executive branch's legal authority to impose such a substantial annual fee.

Broader Context of Immigration Policy

This move is the latest in a series of actions by the Trump administration aimed at restricting legal immigration and reforming the H-1B program. The administration has previously considered changes to favor higher-paying employers and had suspended the program in June 2020 during its first term. In addition to the H-1B fee, President Trump also announced a separate 'gold card' visa, requiring a $1 million payment for US permanent residency.