Trump Administration Proposes $100K Annual H-1B Visa Fee

• A new $100,000 yearly fee for H-1B visas may reshape tech hiring, raising costs and prompting concerns over global talent access.

The Trump administration has announced plans to impose a $100,000 annual fee on companies for each H-1B visa holder they employ. This marks a significant shift in U.S. immigration policy, particularly affecting the technology sector, which relies heavily on skilled foreign workers. Firms such as Microsoft, Amazon, and JPMorgan have advised employees on H-1B visas to remain in the country or return immediately to avoid complications. The new fee structure is expected to take effect by Sunday, though implementation details remain unclear.

Industry Reaction and Immediate Impact

Internal communications from major tech firms urged visa holders to avoid international travel until further guidance is issued. Law firm Ogletree Deakins, which handles visa applications for JPMorgan, warned that travel could jeopardize visa status under the new rules. While some companies declined to comment, others expressed concern over the financial burden and operational disruption. Shares of firms heavily reliant on H-1B talent, including Cognizant, Infosys, and Wipro, dropped by up to 5% following the announcement.

Talent Pipeline and Economic Implications

Critics argue that the fee could deter highly skilled workers from seeking employment in the U.S., undermining innovation and competitiveness. Venture capital partner Deedy Das noted that discouraging global talent may slow economic growth and reduce the country’s ability to lead in emerging fields. Analysts warn that smaller firms and startups could be disproportionately affected, potentially relocating high-value work overseas. The move also raises legal questions, with immigration experts pointing out that Congress only permits fees to cover administrative costs.

Visa Distribution and Political Context

India remains the largest source of H-1B visa recipients, accounting for over 70% of approvals last year, followed by China at nearly 12%. In early 2025, Amazon and AWS received more than 12,000 H-1B approvals, while Microsoft and Meta each secured over 5,000. Commerce Secretary Howard Lutnick stated that major companies support the fee, though many have yet to confirm publicly. The proposal is part of a broader immigration crackdown, which also includes a new “gold card” residency option for individuals able to pay $1 million.