The new statement from U.S. President Donald Trump regarding the imposition of a $100,000 fee for each H-1B visa application has surprised many companies and countries.

What is an H-1B visa?

The H-1B visa is a legal immigration program that allows U.S. employers to temporarily hire highly skilled foreign workers in “specialty occupations” within healthcare, technology, finance, and other STEM-related fields (Science, Technology, Engineering, and Mathematics).

According to the purpose of the visa program, a “specialty occupation” is defined as a job that requires at least a bachelor’s degree or higher and “the application of theoretical and practical knowledge of a high level of specialized expertise.”

This visa program was created under the Immigration Act of 1990, originally designed to address the critical needs of the workforce, making it easier for employers to hire skilled workers who are difficult to find in the U.S.
According to the U.S. Department of Labor, there are legal standards in place to protect American workers doing similar jobs from being negatively affected by the employment of foreign workers.
However, in recent years, some Democratic and Republican lawmakers have pushed for reform and increased oversight of the program, arguing that it has replaced American workers and suppressed wages.

Taylor Rogers, a White House spokesperson, told NBC News that President Trump “promised to prioritize American workers, and this reasonable action has been carried out accordingly by preventing companies from disrupting the system and reducing workers’ wages.”
What has changed and who is affected?
On September 19th, President Trump signed an announcement requiring new H-1B visa applications submitted after September 21st to pay a fee of $100,000, a significant increase from the current fee, which is usually $2,000-$5,000.
Initially, the new policy did not clarify whether the fee applied only to new applications or also to those currently holding H-1B visas or seeking extensions. This led to a series of confusions as workers and companies tried to understand who would be affected.

According to the guidance issued this week by the U.S. Department of State and the U.S. Citizenship and Immigration Services, the $100,000 fee for H-1B visas is a one-time fee and applies only to new applications.
This does not affect individuals who already hold valid H-1B visas issued before September 21 and does not change the fee requirements for those renewing their H-1B visas.
According to the guidance, current H-1B visa holders can still enter and exit the U.S.
What will happen next for visa holders and applicants?
Anyone applying for an H-1B visa is typically sponsored by a U.S. employer.

According to the CBP Customs Agency, the U.S. Department of State and USCIS immigration agency have “been instructed to begin implementing new financial requirements” for employers applying for new H-1B visas for individuals residing outside the U.S.

Major technology companies have relied on approval from the visa program to recruit employees from abroad.

USCIS data shows that Amazon benefits the most from this program, with over 10,000 applications approved since October 1st, followed by Tata Consultancy Services with 5,500 applications, and Microsoft and Meta, each with over 5,000 applications. Apple and Google also have more than 4,000 approved applications. Other companies with over 2,000 approved applications include JPMorgan Chase and Walmart.

By law, only 65,000 new H-1B visas are issued each year, plus 20,000 applications approved specifically for foreign workers with advanced degrees from U.S. colleges and universities.

Since the number of H-1B visa applications exceeds the annual cap of 85,000 applications, a lottery system is used to select the applicants who are invited to apply. According to FWD.us, an immigration reform advocacy group, there are some exemptions approved by Congress for certain employees of non-profit research organizations and government agencies.

In the most recent H-1B lottery, which ended registration in March, approximately 339,000 people applied, exceeding the annual limit. Of those, 120,141 applications were selected, according to USCIS data. The new fee will not affect these applicants.

However, future applicants residing outside the U.S. who wish to participate in the next lottery, scheduled for early next year, may have to pay the new fee.

According to the White House, employers must provide proof of a $100,000 payment before submitting an H-1B visa application on behalf of the employee.

Who will be most affected?

Based on previous trends, those from China and India seeking computer-related jobs in the U.S. may be the first to feel the ripple effects of changes to the H-1B visa policy.

According to Pew Research, over the past decade, approximately 60% of H-1B visa recipients annually have worked in computer-related fields. The majority of H-1B visas issued since 2010 have gone to Indian workers, followed by workers from China, who account for about 10% of visas issued during the same period.