The Trump administration has announced a sweeping change to the H-1B visa program, imposing a $100,000 annual fee on U.S. companies that want to hire foreign workers under the scheme. The proclamation, signed Friday and titled “Restriction on entry of certain nonimmigrant workers,” will take effect on September 21, 2025.
The order argues that the H-1B program, originally designed to bring in highly skilled workers for specialized roles, has been “deliberately exploited” by some firms to replace American employees with lower-cost foreign labor. The White House said the fee is intended to ensure companies only hire abroad when absolutely necessary.
Commerce Secretary Scott Bessent defended the move, saying: “Either the person is very valuable to the company and America, or they’re going to depart, and the company is going to hire an American.”
Major tech companies — long the largest users of the H-1B system — are urging caution. Amazon, which employs thousands on H-1B and H-4 visas, told staff in an internal memo: “If you have H-1B status and are in the U.S., stay in the country for now.” Microsoft has issued similar guidance, advising foreign employees to remain in the United States ahead of the order taking effect.
The new rule applies only to fresh visa petitions, not to existing holders. Current H-1B workers will not be required to pay the fee, but if they have been abroad for 12 months, they must return to the U.S. before September 21 to avoid being subject to Homeland Security review.
The measure will run for an initial 12-month period, expiring in September 2026 unless renewed. Officials say any decision on extending it will come after next year’s H-1B lottery.
Legal experts immediately questioned the validity of the policy. Doug Rand, a former senior official at U.S. Citizenship and Immigration Services under President Joe Biden, told The New York Times that “tying an entry ban to a fee, let alone a $100,000 fee, isn’t likely to survive five seconds in court.” Tom Jawetz, a former attorney at the Department of Homeland Security, likened the requirement to “mobs demanding protection money.”
The high price tag marks one of the most aggressive shifts in the history of the visa program, which is heavily relied upon in sectors such as information technology, finance, and engineering. Critics say it will discourage companies from hiring abroad, while the administration insists it will protect American jobs.
