The recent imposition of a substantial fee for H-1B visas by former President Donald Trump has reignited discussions surrounding foreign workers in the U.S. job market. Increasing the cost of entry The new regulation requires H-1B visa applicants to pay an annual $100,000 fee. This proposal has sent shockwaves through the industry stakeholders and critics argue. This fee is a big jump from the prior minimum fee of $2,000 to $5,000 depending on the size of the company.
The H-1B visa program, also known as specialty occupation workers, enables U.S. companies to temporarily fill their workforce needs with qualified foreign workers for up to six years. The current minimum annual salary for visa holders stands at $60,000. Critics are pumping up the alarm, claiming that U.S. tech workers typically make $100,000 or more for comparable positions. Since its establishment in 1990, the program has been under heavy fire. This was one in a series of visa reforms implemented by President George H.W. Bush.
Historical Context of the H-1B Visa Program
The H-1B visa program was intended to be a safety valve to help meet the increasing demand for highly skilled workers in the U.S. technology industry. Indian technology companies have long ruled the roost year after year. In fact, they have imported the most H-1B employees of anyone. Between 2009 and 2025, firms such as Tata Consultancy Services (TCS), Cognizant, and Infosys held the top three positions for H-1B visa sponsorship.
In 2024, Indians received a stunning 71% of all H-1B visas approved. This was a much higher percentage than for Chinese nationals, who only won 11.7%. This trend is a marker of the continued need for foreign talent to come fill essential roles in American tech companies.
“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 H-1B.”
That data indicates that this year in 2024, Cognizant was in first place with 92,435 visas—just narrowly ahead of Infosys who was second with 87,654 visas. TCS continued to hold its ground as the number ten company. It failed to win as many visas as its competition won.
The Impact of the $100,000 Fee
The new, alternative, $100,000 fee seems likely to tip the scales quite clearly in favor of hiring domestic workers rather than foreign ones. This one-time fee only applies at the filing of a new, initial H-1B petition. Critics argue that such a steep financial barrier could deter companies from pursuing foreign talent, ultimately affecting innovation and growth in various sectors.
The rules bar anyone with a current H-1B visa. They don’t apply to anyone who filed their applications before September 21. Thus, current visa holders are safe from the fee increase at least directly. The impact on future applicants and employers is still alarming.
“It’s all about pay-to-play”
Many industry experts believe that the fee structure could disproportionately disadvantage smaller companies that may struggle to absorb such costs. Small and large organizations alike agreed that the previous fees were not a major burden. Now it’s the new wage floor that is making a future flow of exotic talent seem inaccessible.
Reactions from Industry Leaders
We’ve heard from industry leaders on both sides of the aisle their approval — or disapproval — of these changes to the H-1B visa program and its associated fees. Others simply argue that we should be putting American workers first. On the other hand, some people point to the important role that highly-skilled immigrants play in creating innovation and increasing U.S. economic competitiveness.
Commerce Secretary Howard Lutnick articulated a perspective that emphasizes domestic training over foreign hiring, stating, “If you’re going to train somebody, you’re going to train one of the recent graduates from one of the great universities across our land. Train Americans. Stop bringing in people to take our jobs.”
Proponents of the H-1B program argue that it remains crucial for companies seeking specialized skills that are often unavailable domestically. Our members include the heads of important sectors that are often heavily impacted and understand foreign workers are essential. They have consistently shone a light on the need for these contributions.
“I have many H-1B visas on my properties. I’ve been a believer in H-1B. I have used it many times.”
