Trump imposes $100K annual fee on basic tech visa

US President Donald Trump on Friday announced an annual fee of $100,000 for work visas widely used in the tech sector, potentially having dire consequences for tech companies that employ large numbers of Asians.

H-1B visas allow foreign workers with specific skills, such as scientists, engineers, and computer programmers, to come and work in the United States.

These work permits are for a limited period, with an initial period of three years, extendable to six years for foreigners sponsored by an employer.

Since his first term, Donald Trump has indicated his intention to limit these permits to prioritize American workers.

Commerce Secretary Howard Lutnick, who joined Trump at the White House, explained that the general idea is that big tech companies or other companies will no longer train foreign workers, stressing that all major companies are committed to this principle.

He added that if companies employ foreign workers, “they have to pay $100,000 to the government and then pay their employees’ salaries… This isn’t profitable”.

“If you want to train someone, you should train a young graduate from one of our country’s prestigious universities, train Americans, and stop bringing people to fill our jobs,” he said.

The number of H-1B visa applications has increased significantly in recent years, peaking in approvals in 2022 under former Democratic President Joe Biden.

In contrast, the peak in denials was recorded in 2018, during Donald Trump’s first term in the White House.

The United States approved nearly 400,000 of these visas in 2024, two-thirds of which were renewals of previous visas.

Three-quarters of the applicants whose applications were approved were Indian citizens.

Major tech companies employ a large number of Indian workers who relocate to the United States or commute back and forth between the two countries.

Tech entrepreneurs, including former Trump ally Elon Musk, have previously warned against targeting H-1B visas, stressing that the United States doesn’t have enough skilled workers to meet the sector’s needs.

According to a copy of the executive order signed by Trump, fees will be imposed on those wishing to enter the country starting Sunday, with Homeland Security Secretary Kristi Noem able to exempt individuals, companies, or even entire sectors from the fees.

This announcement adds to a series of anti-immigration measures taken by the US President and his administration, which also include mass deportations of illegal immigrants.

Donald Trump also signed an executive order to create a $1 million golden residency card, a reference to the famous green card that allows people to live and work in the United States.

Trump predicted a tremendous success for this new system, which aims to allow foreign nationals with exceptional qualifications to obtain a golden card.

A Trump advisor explained, “For a payment of $1 million to the US Treasury, or $2 million if supported by a company, applicants for this ‘golden card’ will benefit from expedited visa processing”.