American President Donald Trump has signed a proclamation that upends the H-1B visa system, imposing a USD $100,000 entry payment and annual fee on skilled workers, effectively pricing the programme out of reach for most. The move, issued on 19 September and set to take effect from 21 September, is already drawing sharp criticism from business, education, and health sectors that rely heavily on foreign talent. Legal challenges are certain.
“The H-1B nonimmigrant visa programme was created to bring temporary workers into the United States to perform additive, high-skilled functions, but it has been deliberately exploited to replace, rather than supplement, American workers with lower-paid, lower-skilled labour,” Trump declared in the proclamation. He argued that “the large-scale replacement of American workers through systemic abuse of the programme has undermined both our economic and national security.”
The order cites figures to make its case: the number of foreign STEM workers in the United States doubled between 2000 and 2019, reaching almost 2.5 million. In computer and maths occupations, the foreign share grew from 17.7 per cent to 26.1 per cent in the same period. “Information technology firms in particular have prominently manipulated the H-1B system, significantly harming American workers,” Trump said, noting that IT outsourcing companies are now among the largest H-1B employers.
Trump also highlighted unemployment among young American graduates. “According to a study from the Federal Reserve Bank of New York, among college graduates ages 22 to 27, computer science and computer engineering majors are facing some of the highest unemployment rates in the country at 6.1 per cent and 7.5 per cent, respectively,” the proclamation stated. He linked this to firms hiring H-1B workers “at a significant discount” to American wages.
Under the new rules, employers seeking to hire H-1B workers must pay $100,000 upfront and another $100,000 each year to maintain their visas. The proclamation sets out that this restriction applies for at least 12 months and may be renewed. While exemptions are possible if the Secretary of Homeland Security deems them in the national interest, the broad sweep of the policy suggests few will qualify.
Critics say the measure is nothing less than a death knell for the programme. “This will effectively end the H-1B programme completely. No one, even the highest paid at 500K, will be paying an extra 100K a year to the government,” said one industry reaction shared widely on Friday. Observers warn that the fallout could “destroy the health care, higher education, and technology sectors as we know them if this isn’t struck down in court.”
The proclamation also directs the Secretary of Labour to revise prevailing wage levels and the Department of Homeland Security to prioritise “the admission as nonimmigrants of high-skilled and high-paid aliens,” raising the prospect of a narrower, more exclusive visa regime.
Alongside the H-1B changes, Trump rolled out what officials are calling a “gold card” visa, requiring a $1 million annual payment as a pathway to citizenship for wealthy investors. Commerce Secretary Howard Lutnick said “all big companies” were on board with the overhaul, a claim industry groups are likely to contest.
The financial leap is staggering. Current visa fees for skilled workers are about $215. Investor visa programmes in countries such as Portugal or Greece typically cost between $10,000 and $20,000 a year. By contrast, Trump’s $100,000 H-1B fee represents a 465-fold increase.
Trump’s allies argue the system has been exploited for too long, with American workers forced to train their foreign replacements. “American IT workers have reported they were forced to train the foreign workers who were taking their jobs and to sign nondisclosure agreements about this indignity,” the proclamation said, calling the practice “a national security threat.”
Yet legal experts say the measure faces an uphill battle in the courts. The Immigration and Nationality Act empowers the president to restrict entry in certain cases, but the sweeping imposition of fees without congressional approval may exceed executive authority. Lawsuits are expected within days.
For companies, universities, and hospitals that rely on foreign talent, the order injects chaos into planning for the year ahead. For thousands of H-1B holders already in the United States, the question of whether their employers can absorb such costs will decide if they can stay.
The saga of America’s immigration wars has taken another sharp turn. Whether this executive order survives court scrutiny or is struck down will shape not just the visa system, but the direction of Trump’s wider economic agenda.
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🇺🇸 @realDonaldTrump signs proclamation imposing a $100,000 entry fee + annual fee on #H1Bvisas.💸The move aims to curb "systemic abuse" but critics warn it could devastate tech, health & education sectors.⚖️Legal challenges expected. #TheIndianSun
🔗 https://t.co/SA4ovL0w1w pic.twitter.com/SFPvN5B7SP
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