Trump Imposes $100,000 Fee on H-1B Visas, Prompting Legal Challenges
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President Donald Trump has introduced a $100,000 fee for H-1B visa applications, aiming to encourage hiring American workers, a move that has sparked immediate legal challenges and concerns from the tech industry.
President Donald Trump has signed a proclamation introducing a $100,000 application fee for H-1B visas, which are used by U.S. companies to hire skilled foreign workers. The White House stated that this measure is intended to encourage companies to hire American workers.
The fee applies to new applicants starting from the next visa lottery in February and does not affect current H-1B holders. Over 141,000 new H-1B visas were issued last year; if application numbers remain consistent, American companies could face an annual cost of $14 billion due to the new fee.
Silicon Valley, which heavily relies on H-1B visas to hire engineers, scientists, and coders, has expressed concern over the fee. Garry Tan, CEO of start-up incubator Y Combinator, commented that the decision "kneecaps start-ups" and is a "massive gift to every overseas tech hub."
Legal experts anticipate that the fee will face court challenges. Matthew Dunn, a partner at law firm Herbert Smith Freehills Kramer, stated, "To add on $100,000 is totally outside their regulatory power." He added, "We think it's very likely that we will see a court intervention blocking this proclamation."
The administration is also considering broader revisions to the H-1B program, including raising the benchmark salary for visa approvals. Republican lawmakers have proposed allocating H-1B visas based on ranked salary rather than the current lottery system.
Employers are exploring alternative visa categories, such as the L-1 visa for management and employees with specialized knowledge. However, this visa requires staff to have been employed overseas for at least one year, making it less accessible for some companies.
Gary Cohn, former economic adviser to Trump and current vice chair at IBM, commented that the increased fee is a "good idea." He noted that companies are "not just going to ask for a visa and put a name in the lottery unless that is a highly skilled person who you need, who you cannot hire in the U.S."
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