Trump Proposes $100,000 Annual Fee for H-1B Visas
▼ Summary
– President Trump announced a new $100,000 annual fee on H-1B visas to discourage their use, despite tech industry lobbying.
– The tech industry heavily relies on H-1B visas, with companies like Amazon, Google, and Microsoft each employing thousands of such workers.
– Some companies, including Microsoft and Amazon, reportedly advised visa-holding employees abroad to return to the US before the fee takes effect.
– A new “gold card” visa program replaces existing EB-1 and EB-2 visas, requiring applicants to contribute $1-2 million, prioritizing wealth over skill.
– The revenue from these new fees and programs would be insignificant compared to the national debt, which exceeds $37 trillion.
In a move set to reshape the landscape of skilled immigration, a new proposal would impose a $100,000 annual fee on all new H-1B visa applications. This policy aims to discourage reliance on foreign talent, though it has already sent shockwaves through industries that depend heavily on these visas, particularly the technology sector.
Major tech firms stand to be the most affected. Amazon employs approximately 14,000 H-1B workers, more than any other U.S. company, while Google, Meta, Microsoft, Apple, and Tata Consultancy each have over 4,000 employees working under this visa category. Though the fee applies only to new applicants and will likely face legal challenges, its announcement has prompted immediate action. Reports indicate that Microsoft and Amazon have internally advised visa-holding employees currently abroad to return to the U.S. before the policy takes effect. Microsoft declined to comment on the leaked memos or the proposed changes.
The administration also introduced a “gold card” program, intended to replace the existing EB-1 and EB-2 visa categories, which are designed for individuals of extraordinary ability or those with advanced degrees. Under the new system, applicants must demonstrate their value to the United States by contributing one million dollars, a figure that rises to two million for company-sponsored candidates. Critics argue that this system prioritizes wealth over merit, though supporters claim it could generate significant revenue.
Even if fully implemented, the financial impact of these measures would be minimal in the context of the national debt, which exceeds $37 trillion and is projected to grow by over $2 trillion in 2025. The proposed fees, while substantial for individual applicants and employers, would contribute only a fraction of what is needed to meaningfully address fiscal challenges.
Updated September 20th: Includes Microsoft’s response.
(Source: The Verge)
