Trump slaps USD100,000 fee on H-1B; jolts tech industry

WASHINGTON: US President Donald Trump on Friday detonated a new grenade in America’s immigration debate, slapping an annual USD100,000 fee on H-1B skilled worker visas, the backbone of Silicon Valley’s talent pipeline, while rolling out a USD one million fast-track “gold card” to residency.

The Oval Office order, effective Sunday, threatens to upend a system that brings in tens of thousands of foreign engineers, programmers and scientists each year, with Indian workers making up roughly three-quarters of recipients. Tech giants from Google to Microsoft rely heavily on them to plug yawning talent gaps.

“The main thing is, we’re going to have great people coming in – and they’re going to be paying,” Trump declared as he signed the decree, joined by Commerce Secretary Howard Lutnick.

Also read: US visa fee to jump to $442 from October 1

The fee bombshell comes as part of Trump’s wider second-term immigration crackdown. In his first term, his efforts to squeeze the H-1B program ran into court blocks; this time, critics warn, the economic fallout could be immediate. Even Elon Musk, once Trump’s ally, has cautioned against gutting the visas, arguing America simply doesn’t produce enough homegrown specialists.

Trump’s order gives the Homeland Security secretary power to grant exemptions for individuals, companies or entire industries. But with the fee set to kick in instantly, many fear chaos in the system.

The president also unveiled a flashy new route to US residency: a $1m “gold card” for individuals or $2m for corporate sponsors, pitched as a way to attract “the best people.”

Also read: Trump proposes new limits on US visa duration for students, journalists

The H-1B program admits 85,000 workers a year on a lottery system, typically for three-year stints extendable to six. The US approved 400,000 visas in 2024 – two-thirds renewals – under Joe Biden, compared to record rejections in Trump’s first term.

Legal challenges are almost certain, but Trump sounded unfazed: “I think it’s going to be tremendously successful.”