What's Happening?
President Trump has announced a new $100,000 fee for H-1B visa applications, marking a significant change to the longstanding program that allows skilled foreign workers to work in the U.S. The fee, effective from September 21, 2025, is intended to discourage companies from hiring foreign workers and instead prioritize American workers. The White House clarified that the fee applies only to new visa applications and not to current holders or renewals. This move has caused confusion among tech companies and immigration attorneys, with concerns about its impact on current visa holders traveling outside the U.S.
Why It's Important?
The introduction of the $100,000 fee is likely to impact the U.S. technology and finance sectors, which heavily rely on the H-1B visa program for skilled labor. By increasing the cost of hiring foreign workers, the policy aims to encourage companies to hire domestically, potentially affecting the availability of skilled labor in critical industries. This could lead to increased wages for local workers but may also result in talent shortages, affecting productivity and innovation in sectors that depend on specialized skills.
What's Next?
The policy's implementation may lead to further clarifications from the White House regarding exemptions for national interest and security. Companies are advised to keep their H-1B employees within the U.S. until more guidance is provided. The tech industry, among others, will need to adapt to these changes, possibly increasing local hiring and exploring alternative solutions to meet their workforce needs.