Trump Proposes $100,000 H-1B Visa Fee, Targeting Program That Launched Musk and Instagram

The cost for American companies to hire skilled foreign professionals through the H-1B visa program has surged dramatically under a new presidential proclamation. A recently announced policy raises the application fee from $215 to an eye-watering $100,000 per visa, a move the administration says targets systemic abuse and protects domestic employment.

H-1B visas permit U.S. firms to bring in overseas talent for specialized roles in sectors like technology, engineering, mathematics, and healthcare. Each year, the program issues 65,000 visas with an extra 20,000 reserved for foreign graduates of American universities holding advanced degrees. Selection occurs via lottery, with visas initially valid for three years and options for extension or permanent residency applications.

Officials justify the steep increase by pointing to what they describe as rampant misuse of the system, arguing it has negatively impacted American workers. White House data indicates the proportion of IT professionals on H-1B visas has more than doubled since 2003, now exceeding 65%, while unemployment among recent computer science graduates has reached 6.1%.

This policy shift is certain to provoke strong opposition from Silicon Valley, where the H-1B program has been instrumental in building some of the tech industry’s most iconic companies. Elon Musk, for instance, first entered the U.S. workforce on an H-1B visa. The Tesla and SpaceX CEO has been vocally defensive of the program, recently telling a critic on social media, “The reason I’m in America along with so many critical people who built SpaceX, Tesla and hundreds of other companies that made America strong is because of H1B.”

Another prominent example is Mike Krieger, the Brazilian-born co-founder of Instagram, who initially worked at Meebo under an H-1B. His experience highlights a common pathway: many immigrant entrepreneurs first gain crucial industry experience through sponsored employment before launching their own ventures.

Industry groups like the National Venture Capital Association have consistently advocated for expanding, not restricting, high-skilled immigration, noting that while the H-1B isn’t a direct route to entrepreneurship, it plays a vital role in cultivating future founders. The visa’s requirement that beneficiaries work for a specific employer often delays startup launches until green cards are secured, a process that can take years.

Following the announcement, technology leaders took to social media to express concern that such policies could drive talent to more immigration-friendly countries. The administration’s proclamation, however, doubled down on its stance, citing examples of companies approved for thousands of H-1B workers while conducting large-scale layoffs of U.S. employees. One unnamed firm reportedly received approval for over 5,000 visas this fiscal year while cutting approximately 16,000 domestic jobs.

Although the order includes provisions for case-by-case exemptions based on national interest and directs the Labor Secretary to adjust wage standards to safeguard American salaries, the overall tone remains firmly aimed at reducing foreign worker intake. The administration also framed the changes as partly motivated by national security concerns.

(Source: TechCrunch)