Trump Slaps $100,000 Fee on H-1B Visas ; Criticism and Legal Challenges Loom

September 20, 2025
India/World Visa

Washington DC: President Donald Trump on Friday signed a proclamation that will require a $100,000 annual visa fee for highly-skilled foreign workers and rolled out a $1 million “gold card” visa as a pathway to U.S. citizenship for wealthy individuals, moves that face near-certain legal challenges amid widespread criticism he is sidestepping Congress.

If the moves survive legal muster, they will deliver staggering price increases. The visa fee for skilled workers would jump from $215. The fee for investor visas, which are common in many European countries, would climb from $10,000-$20,000 a year.

H-1B visas, which require at least a bachelor’s degree, are meant for high-skilled jobs that tech companies find difficult to fill. Critics say the program is a pipeline for overseas workers who are often willing to work for as little as $60,000 annually, well below the $100,000-plus salaries typically paid to U.S. technology workers.

Trump on Friday insisted that the tech industry would not oppose the move. Commerce Secretary Howard Lutnick said “all big companies” are on board.

Representatives for the biggest tech companies, including Amazon, Apple, Google and Meta, did not immediately respond to messages for comment on Friday. Microsoft declined to comment.

Lutnick said the change will likely result in far fewer H-1B visas than the 85,000 annual cap allows because “it’s just not economic anymore.”

“If you’re going to train people, you’re going to train Americans.” Lutnick said on a conference call with reporters. “If you have a very sophisticated engineer and you want to bring them in … then you can pay $100,000 a year for your H-1B visa.”

Trump also announced he will start selling a “gold card” visa with a path to U.S. citizenship for $1 million after vetting. For companies, it will cost $2 million to sponsor an employee.

The “Trump Platinum Card” will be available for a $5 million and allow foreigners to spend up to 270 days in the U.S. without being subject to U.S. taxes on non-U.S. income. Trump announced a $5 million gold card in February to replace an existing investor visa — this is now the platinum card.

Lutnick said the gold and platinum cards would replace employment-based visas that offer paths to citizenship, including for professors, scientists, artists and athletes.

Critics of H-1Bs visas who say they are used to replace American workers applauded the move. U.S. Tech Workers, an advocacy group, called it “the next best thing” to abolishing the visas altogether.

Doug Rand, a senior official at U.S. Citizenship and Immigration Services during the Biden administration, said the proposed fee increase was “ludicrously lawless.”

“This isn’t real policy — it’s fan service for immigration restrictionists,” Rand said. “Trump gets his headlines, and inflicts a jolt of panic, and doesn’t care whether this survives first contact with the courts.”

Lutnick said the H-1B fees and gold card could be introduced by the president but the platinum card needs congressional approval.

Historically, H-1B visas have been doled out through lottery. This year, Amazon was by far the top recipient of H-1B visas with more than 10,000 awarded, followed by Tata Consultancy, Microsoft, Apple and Google. Geographically, California has the highest number of H-1B workers.

Critics say H-1B spots often go to entry-level jobs, rather than senior positions with unique skill requirements. And while the program isn’t supposed to undercut U.S. wages or displace U.S. workers, critics say companies can pay less by classifying jobs at the lowest skill levels, even if the specific workers hired have more experience.

As a result, many U.S. companies find it cheaper to contract out help desks, programming and other basic tasks to consulting companies such as Wipro, Infosys, HCL Technologies and Tata in India and IBM and Cognizant in the U.S. These consulting companies hire foreign workers, often from India, and contract them out to U.S. employers looking to save money.

First lady Melania Trump, the former Melania Knauss, was granted an H-1B work visa in October 1996 to work as a model. She was born in Slovenia.

In 2024, lottery bids for the visas plunged nearly 40%, which authorities said was due to success against people who were “gaming the system” by submitting multiple, sometimes dubious, applications to unfairly increase chances of being selected.

Major technology companies that use H-1B visas sought changes after massive increases in bids left their employees and prospective hires with slimmer chances of winning the random lottery. Facing what it acknowledged was likely fraud and abuse, USCIS this year said each employee had only one shot at the lottery, whether the person had one job offer or 50.

Critics welcomed the change but said more needs to be done. The AFL-CIO wrote last year that while changes to the lottery “included some steps in the right direction,” it fell short of needed reforms. The labor group wants visas awarded to companies that pay the highest wages instead of by random lottery, a change that Trump sought during his first term in the White House.

“We need great workers, and this pretty much ensures that that’s what’s going to happen,” Trump said from the Oval Office, where officials detailed how the measure would incentivize companies to employ American workers while still providing a pathway to hire highly skilled foreign workers in specialized fields.

The proclamation will restrict entry under the program unless accompanied by the payment.

The moves mark the latest in a series of efforts from the administration to crack down on immigration and place sharp new limits on the types of foreigners allowed into the country. They threaten to significantly impact industries that depend heavily on H-1B workers.

The H-1B visa is a work visa that’s valid for three years and can be renewed for another three years. Economists have argued the program allows US companies to maintain competitiveness and grow their business, creating more jobs in the US.

Commerce Secretary Howard Lutnick told reporters on a call Friday evening that the administration came to the fee of $100,000 per year, plus vetting costs, after talking with companies.

He noted that the payment structure is still under discussion with the Department of Homeland Security, in terms of “whether we’re going to charge the $300,000 up front or $100,000 a year for the three years.”Trump’s stance on the H-1B visa program has fluctuated, and the issue has sharply divided his supporters at times.

The president restricted access to foreign worker visas during his first term and has targeted the H-1B program in past remarks – but during the 2024 campaign, he signaled openness to giving some foreign-born workers legal status if they graduated from a US university.

Trump also defended the program last December, telling the New York Post that he’s “a believer in H-1B.”

“I’ve always liked the visas, I have always been in favor of the visas. That’s why we have them,” Trump told the news outlet at the time.

Trump’s remarks came after entrepreneurs Elon Musk and Vivek Ramaswamy, whom Trump initially tapped to lead the Department of Government Efficiency, defended the program, igniting sharp criticism from MAGA loyalists hoping to restrict immigration.

65,000 H-1B visas are granted annually, with another 20,000 reserved just for people who hold advanced degrees from US higher education institutions. Demand for the visa often exceeds the supply, triggering a lottery system.

Many companies use H-1B visas to help fill their workforces. But tech is the sector most commonly associated with H-1Bs. Tech firms big and small say they need the H-1B program to hire trained talent that they can’t find at home.

Trump has previously opposed the H-1B visa program as part of his platform to encourage US companies to prioritize American labor over hiring foreign workers. During his 2016 campaign, Trump accused US companies of using H-1B visas “for the explicit purpose of substituting for American workers at lower pay.”

In 2020, Trump restricted access to H-1B visas on several occasions, part of his administration’s effort to curb legal immigration while responding to the changing economic conditions brought on by the Covid-19 pandemic.

The so-called gold card program that Trump also unveiled is also designed to overhaul the nation’s posture toward foreign workers, aiming to tip the balance of immigrants toward entrepreneurs and high earners.

A brainchild of Commerce Secretary Howard Lutnick, the program will speed entry for foreigners who can afford the $1 million fee — or get their employer to pay twice as much to sponsor them. In the Oval Office on Friday, Lutnick criticized the existing green card process for immigrants seeking to live and work permanently in the US, arguing it resulted in the country taking in the “bottom quartile” of workers from abroad.

“We’re going to only take extraordinary people at the very top,” Lutnick said of the gold card program.

H-1B employees will be denied entry to the United States as of September 21, 2025 unless their employer has paid a $100,000 fee for the employee, according to a proclamation signed by President Trump late Friday.

The entry ban and fee requirement appear to apply to any H-1B entering the United States after 12:01am EDT on Sunday, September 21, 2025. It certainly applies to any to-be-filed or pending H-1B petition and any new application for an H-1B visa.

The proclamation allows the Department of Homeland Security to grant exceptions to the ban for individual foreign nationals, foreign nationals working for a particular company, or foreign nationals working in a specific industry, if, in the agency’s discretion, H-1B employment is found to be in the national interest and does not pose a threat to U.S. security or welfare.

The restriction will be valid for 12 months but may be extended on the recommendation of the federal immigration agencies. An extension would keep the ban in place for foreign nationals for whom a FY 2027 H-1B cap petition was approved.

President Trump late Friday signed a presidential proclamation that bans an H-1B employee from entering the United States unless their employer has paid a $100,000 fee for the sponsored employee. The proclamation is set to take effect at 12:01 am EDT on Sunday, September 21, absent a court order suspending implementation.

According to the proclamation, the entry restriction applies to foreign nationals seeking to enter the United States on or after the effective date to work as H-1B employees unless their petition is accompanied or supplemented by a payment of $100,000.

If an H-1B petition beneficiary is currently outside the United States, the proclamation directs the Department of Homeland Security to suspend a decision on the H-1B petition for that beneficiary if the fee is not paid. The proclamation also directs the Secretary of State not to approve an H-1B visa unless the $100,000 payment is made.

The proclamation itself is clear. However, when it is read alongside a related White House fact sheet, differences in wording raise questions about whether the entry restrictions apply to people with an H-1B petition or visa approved before the proclamation’s effective date. Until there is official clarification, employers should follow the proclamation as written. Fragomen will provide updates as they become available.

The proclamation gives the Department of Homeland Security (DHS) the authority to grant an exception to any individual foreign national, all foreign nationals working for a specific employer, or all foreign nationals working in a specific industry if it is in the U.S. national interest and does not pose a threat to U.S. national security or welfare. DHS has not yet announced a process for exception applications.

DHS and the State Department are instructed to verify that the $100,000 fee has been paid before approving a USCIS H-1B petition or a State Department H-1B visa application. Fee payment procedures have not yet been announced.

The proclamation directs the Secretary of State to issue guidance to ensure that those with an approved H-1B petition for employment before October 1, 2026 do not misuse the B-1/B-2 visa. This is likely to mean that H-1B petition beneficiaries seeking to enter the United States as visitors for business or tourism may be subject to higher scrutiny when applying for a B visa or attempting to enter the United States under the Visa Waiver Program.

The proclamation instructs the Department of Homeland Security to begin rulemaking that would prioritize the highest paid and most qualified foreign nationals. A DHS proposal to implement a weighted system for allocating the H-1B quota has already cleared Office of Management and Budget review and is expected to be published for public feedback in the coming days. Other DHS rulemaking is possible.

It also directs the Department of Labor to propose changes to the H-1B prevailing wage system. Though the Administration’s most recent regulatory agenda did not include a plan for prevailing wages, a proposed regulation could be issued in the coming months. During the first Trump Administration, an attempt to raise prevailing wages was blocked by a federal court and ultimately withdrawn. A new regulation would go through notice-and-comment rulemaking procedures and take several months to complete.

Though it is not yet clear how the Trump Administration will implement the new proclamation, we advise employers and affected foreign nationals to do as follows until further notice:

Individuals outside the United States with an approved H-1B petition and H-1B visa (if required) should try to return to the United States before 12:01am EDT on Sunday, September 21, 2025. If they are unable to enter before that time, they should await further instructions.

H-1B nonimmigrants with plans to travel outside the United States and reenter on or after September 21 should put their plans on hold for now until the scope of the entry restrictions is clarified. If foreign travel is unavoidable, they should anticipate significant delays in their ability to return to the United States.

Employers and foreign nationals should stay on top of legal developments. Litigation to challenge the entry ban is expected and court orders could mean new instructions for H-1B nonimmigrants and their employers with little notice.

 

Report on President Trump’s H-1B Visa Proclamation and New Immigration Pathways

Date of Action: Friday, September 19, 2025
Effective Date: 12:01 a.m. EDT, Sunday, September 21, 2025
Type of Action: Presidential Proclamation

1. Overview of the Proclamation

President Donald Trump signed a proclamation that:

  1. H-1B Visa Fees

    • Requires employers to pay a $100,000 annual fee for each foreign worker sponsored under the H-1B program.

    • Previous H-1B application fee: $215.

    • Employers must pay before entry, petition approval, or visa issuance.

  2. Entry Ban Without Fee

    • H-1B workers cannot enter the U.S. unless their employer pays the $100,000 fee.

    • Applies to new petitions, pending cases, and potentially to approved visas (clarification pending).

  3. “Gold Card” Visa

    • A $1 million fast-track visa with a pathway to citizenship.

    • Companies can sponsor a foreign worker for $2 million.

    • Replaces traditional employment-based green card categories (e.g., professors, scientists, artists, athletes).

  4. “Platinum Card” Visa

    • A $5 million program that allows up to 270 days in the U.S. without U.S. tax liability on non-U.S. income.

    • Requires congressional approval to implement.

  5. Exemptions

    • The Department of Homeland Security (DHS) may grant case-by-case or industry-wide exceptions if found in the U.S. national interest.

2. Impact on the H-1B Program

  • Annual Cap: 85,000 visas (65,000 general + 20,000 advanced degrees).

  • Current Usage: Amazon, Microsoft, Apple, Google, Meta, and major consulting firms (Infosys, Wipro, HCL, Cognizant, Tata).

  • Effect of Fee:

    • Commerce Secretary Howard Lutnick admitted that visa demand will drop below the annual cap because “it’s just not economic anymore.”

    • H-1B dependent industries—particularly technology and outsourcing—may face severe workforce shortages.

    • Companies that still apply will likely do so only for high-value, specialized talent.

3. Legal and Policy Considerations

  • Constitutional Issues:

    • Immigration and visa fees are traditionally set by Congress, not by executive proclamation.

    • Critics argue the move is “ludicrously lawless” and will face immediate legal challenges.

  • Economic Rationale:

    • The administration claims this ensures companies hire Americans unless the foreign worker is “extraordinary.”

    • Critics warn of inflated costs, reduced competitiveness, and increased offshoring of jobs.

  • Historical Context:

    • Trump restricted H-1Bs during his first term and during COVID-19.

    • He has alternated between opposing the program (arguing it undercuts U.S. wages) and supporting it (saying it brings top talent).

4. Industry and Advocacy Responses

  • Tech Industry:

    • Major firms (Amazon, Apple, Google, Meta, Microsoft) have not issued formal statements but are expected to oppose the measure.

    • The move is likely to disrupt hiring pipelines, especially for engineers, researchers, and AI specialists.

  • Critics of H-1B:

    • U.S. Tech Workers group praised the proclamation as “the next best thing” to abolishing H-1B.

    • Labor unions like AFL-CIO want reforms to award visas to highest-paid applicants, not lottery winners.

  • Immigration Experts:

    • Doug Rand (former USCIS official) called the plan “fan service” for restrictionists, predicting swift court challenges.

    • Fragomen, a top immigration law firm, advised employers to prepare for disruptions and litigation outcomes.

5. Immediate Guidance for Employers & Workers

  1. Before September 21, 2025:

    • H-1B workers outside the U.S. should attempt re-entry before the effective date.

  2. Travel Risks:

    • Workers traveling abroad after September 21 risk denial of re-entry unless the fee is paid.

  3. Employer Action:

    • Companies must budget for $100,000 per H-1B employee annually.

    • Consider alternative pathways (gold card, L-1 visas, or domestic recruitment).

  4. Litigation Watch:

    • Court rulings may suspend or block implementation.

    • Employers must stay alert to rapid legal changes.

6. Broader Implications

  • Talent Pipeline:

    • U.S. universities train tens of thousands of foreign STEM students annually. The fee may drive them to Canada, Europe, or Australia.

  • Economic Competitiveness:

    • Economists argue that H-1B workers fuel growth, innovation, and startups. High fees risk brain drain and diminished U.S. competitiveness.

  • Equity Concerns:

    • Replacing employment-based green cards with wealth-based pathways (gold/platinum cards) shifts U.S. immigration toward the wealthy, away from skilled but less affluent professionals.

7. Outlook

  • Legal Challenges: High likelihood of injunctions from federal courts.

  • Industry Response: Technology, healthcare, and academia are expected to lobby heavily against the measure.

  • Policy Shift: Marks a fundamental redirection of U.S. immigration toward wealth-based entry rather than skill-based merit.

✅ Conclusion:
The $100,000 H-1B fee and the new gold/platinum cards represent one of the most dramatic overhauls of U.S. skilled immigration policy in decades. If upheld, they could drastically reduce the number of foreign professionals entering the U.S., reshape the tech workforce, and prioritize wealthy immigrants over skilled professionals. However, the sweeping nature of the proclamation virtually guarantees a prolonged legal battle that will determine whether the policy ever takes effect.

#America #Donald Trump #H1B

Recent Stories