Everything Trump Is Changing with H-1B Visas

President Donald Trump’s administration has introduced a significant change to the H-1B visa program, a move that’s sending ripples through corporate boardrooms and sparking debate about its potential impact on the U.S. economy. The administration announced Friday a substantial increase in the H-1B visa fee, now set at $100,000 per application, a decision poised to reshape how companies recruit and retain highly skilled foreign workers.

As companies and prospective visa holders grapple with the implications, here’s a breakdown of the key changes and their potential ramifications:

The New H-1B Fee Structure

Effective Sunday, each new H-1B visa application will incur a $100,000 fee. This marks a stark contrast to the previous fee structure, which ranged from $2,000 to $5,000 depending on the company size. The policy shift aims to generate revenue and, according to administration officials, encourage companies to prioritize hiring American workers.

Employers are now required to provide proof of payment before filing an H-1B petition. Failure to do so will result in petition restrictions for 12 months, according to a statement from the White House. Industry analysts predict this could lead to delays in project timelines and increased operational costs for businesses reliant on H-1B talent.

Who is Affected?

The $100,000 fee applies exclusively to new H-1B visa applicants and will be implemented in the upcoming lottery cycle. Renewals of existing visas and current visa holders are exempt. Those outside the U.S. with existing H-1B visas won’t be charged upon re-entry. The fee, according to White House press secretary Karoline Leavitt, is a one-time payment.

The Secretary of Homeland Security can grant exceptions for immigrants whose employment is deemed essential to the national interest and poses no threat to U.S. security or welfare. This clause provides a degree of flexibility, but the criteria for exemption remain undefined, creating uncertainty for both employers and prospective workers.

Additionally, guidance will be issued to employees with B visas whose start dates predate October 2026, to prevent the misuse of these temporary business visas as substitutes for H-1B visas. This measure seeks to close potential loopholes and ensure compliance with immigration regulations.

The Rationale Behind H-1B Workers

The H-1B visa program is designed to enable U.S. employers to temporarily employ foreign workers in specialty occupations that require theoretical or technical expertise. These roles typically demand a bachelor’s degree or its equivalent and often fall within STEM fields (science, technology, engineering, and mathematics).

Many companies argue that H-1B workers are crucial to filling talent gaps in specialized areas where there’s a shortage of qualified American workers. This is particularly true in rapidly evolving fields like artificial intelligence, cybersecurity, and quantum computing.

The tech and finance sectors heavily rely on skilled immigrants, particularly from India and China, which accounted for 71% and 11.7% of visa holders last year. These workers bring specialized skills and expertise that are critical for innovation and competitiveness.

Tech Industry’s H-1B Visa Usage

The annual H-1B visa cap is currently set at 65,000, with an additional 20,000 visas reserved for foreign professionals holding a master’s or doctoral degree from a U.S. institution. A lottery system is used to allocate visas when demand exceeds the established caps. Demand has consistently outstripped supply, highlighting the competition for skilled foreign talent.

Data from Pew Research indicates that approximately 60% or more of approved H-1B workers since 2012 have been employed in computer-related occupations. This underscores the tech industry’s reliance on the program to meet its workforce needs.

Amazon emerged as the top employer for H-1B visa holders in the fiscal year 2025, sponsoring over 10,000 applicants by the end of June, according to U.S. Citizenship and Immigration Services. Microsoft and Meta followed, each sponsoring over 5,000 applicants. Rounding out the top companies were Apple and Google, with over 4,000 approvals each. This concentration of H-1B visas among the tech giants fuels the debate about whether the system disproportionately benefits large corporations at the expense of smaller businesses and American workers.