WASHINGTON — US President Donald Trump has signed a sweeping executive order that imposes a $100,000 (Sh12.9 million) annual fee on companies seeking to hire skilled foreign workers through the H-1B visa programme, a move critics warn could choke innovation and drive talent away from America.
The order, set to take effect on September 21, requires employers to pay the hefty sum for each H-1B applicant for up to six years. Until now, fees were capped at about $1,500.
The H-1B programme, capped at 85,000 visas annually, has long been a gateway for global tech workers, with Amazon, Tata, Microsoft, Meta, Apple and Google ranking among its biggest beneficiaries.
Commerce Secretary Howard Lutnick defended the decision, saying companies must now weigh whether a foreign hire is “valuable enough” to justify the new cost. “All of the big companies are on board,” he said.
But immigration attorneys and business leaders warned the order could devastate small firms and start-ups that rely on foreign talent.
Tahmina Watson, a Seattle-based immigration lawyer, described it as a “nail in the coffin” for many of her clients. “Almost everyone’s going to be priced out. This will have a devastating impact,” she said.
Jorge Lopez, a top immigration lawyer at Littler Mendelson PC, argued the policy will “put the brakes on American competitiveness” across industries. Some companies, he warned, may consider relocating operations abroad to bypass the fees.
The executive order also introduces a new “gold card” fast-track visa for wealthy immigrants willing to pay at least £1 million ($1.3 million).
The move represents a sharp reversal from Trump’s earlier campaign promises to ease visa rules for skilled graduates and attract more global talent.
During his first term in 2017, Trump toughened H-1B scrutiny, driving rejection rates to a record 24% by 2018, compared to under 8% during the Obama years.
The new restrictions come as applications for next year’s H-1B visas have already slumped to 359,000 — the lowest in four years, according to US Citizenship and Immigration Services. India, the largest source of H-1B applicants, is expected to be hit particularly hard.
Supporters of the fee argue that H-1B visas suppress wages for US workers, while advocates — including billionaire Elon Musk — insist the programme is vital for keeping America at the cutting edge of innovation.
Trump, who acknowledged in January that he sees “both sides of the argument,” has reignited one of Washington’s most polarising debates — whether America should double down on protecting its workforce or open its doors wider to global talent.
