"Trump's H-1B restriction supported by Lutnick: America seeks 'elite, valuable individuals' only, declares"
US President Donald Trump signed a proclamation on Friday, imposing a $100,000 fee on H-1B visa applications. The move, intended to apply to each H-1B visa application, has caused a significant backlash in the tech industry and sparked political debate over US-India trade.
The H-1B program allows for 65,000 visas each year, with an additional 20,000 visas available for advanced degree holders. India represents 71% of all approved H-1B visa beneficiaries, while China represents 11.7%. Notable tech companies, including Amazon, Meta (formerly Facebook), Microsoft, and JP Morgan, have openly supported the H-1B visa fee policy proposed by US Trade Secretary Howard Lutnick and President Trump.
However, the proposed annual fees for H-1B visas have received criticism from various quarters. Deedy Das, a partner at Menlo Ventures, warned that adding fees could create a disincentive to attract the world's smartest talent to the US. Elon Musk, a former H-1B visa holder, stated that the visas bring in vital skills.
The text of the order does not refer to an annual payment; instead, it limits the measure to 12 months and subjects it to further review. Trump and Lutnick claimed that the fee would be an annual fee to be paid every year, but this has not been confirmed.
Howard Lutnick, US Commerce Secretary, forcefully defended Trump's decision. Lutnick stated that the person applying for the H-1B visa should be valuable enough to justify the fee, or they should not apply. Lutnick further added that companies deciding to pay the fee should consider the person valuable enough to pay the annual fee to the government.
The decision to impose a $100,000 fee on H-1B visa applications has caused shares of Infosys, Cognizant, and Wipro to tumble in the stock market. India has so far resisted such pressure, and putting further visa restrictions risks impacting bilateral ties.
The US tech sector has been shocked by Trump's decision. Amazon alone had more than 10,000 H-1B visa approvals for the first half of 2025, while Amazon, Meta, and Microsoft each have received over 5,000 H-1B visa approvals for the same period.
The proposed H-1B visa fee has also sparked a political debate over US-India trade. Analysts warn that the move could be counterproductive, as it may discourage skilled workers from coming to the US and could potentially harm the US tech sector. The move has also raised concerns about the potential impact on the US economy, particularly in the tech industry.
Despite the controversy, Trump and Lutnick argue that the fee is necessary to ensure that the H-1B program is used only for highly skilled and highly paid workers. The proposed 'gold' and 'platinum' visas worth up to $5 million, intended to replace EB-1 and EB-2 visas, are also part of this effort to prioritise highly skilled workers.
In conclusion, Trump's proposed H-1B visa fee has caused a significant stir in the tech sector and beyond. While some argue that the fee is necessary to ensure that the H-1B program is used only for highly skilled and highly paid workers, others warn that the move could be counterproductive and harm the US tech sector and economy. The debate is likely to continue, as both sides present their arguments and the future of the H-1B program remains uncertain.
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