Trump signed an executive order imposing $100k annual fee on H-1B visa applicants, replacing the current $1,500 charges
Critics and tech leaders warn that the steep fee will devastate small firms and weaken US competitiveness in the global market
Amazon and India’s Nasscom express concern as the order sparks uncertainty for foreign workers, especially Indians who make up 70% of applicants
The order, which comes into effect on Sunday, 21 September, will apply to new applicants and require companies to pay the fee for up to six years per worker.
The H-1B visa has long been used by US firms to hire skilled foreign professionals, particularly in the tech industry.
As reported by BBC, US Commerce Secretary Howard Lutnick justified the action by stating: “The company has to decide… is the person worthy enough to receive a $100,000-a-year gift to the government, or they can go home, and they can go hire an American. They all have the big companies on board.”
Previously, administrative fees for H-1B visas amounted to around $1,500.
Critics warn the fee will devastate smaller businesses and start-ups. Immigration lawyer Tahmina Watson said: “Almost everyone’s going to be priced out. This $100,000 as an entry point is going to have a devastating impact.”
Jorge Lopez, chair of immigration and global mobility at Littler Mendelson PC, argued the order would hurt American competitiveness:
“A $100,000 fee will put the brakes on American competitiveness in the tech sector and all industries.”
Amazon, one of the largest users of H-1B visas, advised employees on Friday, September 19, not to leave the US.
In an internal advisory seen by Business Insider, the company told staff abroad to “return before tomorrow’s deadline if possible”, and warned others to avoid re-entry “until further guidance is provided”.
