Trump Proclamation Sets USD 100,000 Fee for H-1B Visa Sponsorship, Raising Concerns for Indian Tech Workers

In a move set to impact thousands of Indian professionals in the United States, President Donald Trump on Friday signed a proclamation increasing the annual fee for H1-B visas to USD 100,000. The measure is the latest step in the administration’s immigration overhaul and is intended to restrict the entry of foreign workers deemed to be displacing Americans.

According to PTI, White House staff secretary Will Scharf described the H1-B non-immigrant programme as one of the “most abused visa” systems, stating it was originally designed to allow highly skilled workers in specialised fields to fill gaps in the US labour market.

The administration said the new fee is aimed at ensuring that only “very highly skilled” professionals are admitted, while discouraging companies from replacing American employees with cheaper foreign labour. Trump, while signing the order in the Oval Office alongside Commerce Secretary Howard Lutnick, said, “We need workers. We need great workers and this pretty much ensures that that's what's going to happen.”

Lutnick said that under the employment-based Green Card programme, the US had historically admitted around 281,000 people annually, earning an average of USD 66,000, and that these workers were “five times more likely” to rely on government assistance programmes. “So we were taking in the bottom quartile, below the average American. It was illogical, the only country in the world that was taking in the bottom quartile,” he remarked.

He added that the new system would prioritise “extraordinary people at the very top” who would contribute by creating businesses and jobs for Americans. “This programme will raise more than USD 100 billion for the treasury of the United States,” Lutnick said, noting the USD 100,000 fee would be charged annually.

Trump said the government intends to use the revenue to reduce debt and cut taxes. “We think it's going to be very successful,” he said.

The change is expected to have significant implications for Indian technology workers, who account for a large share of H1-B holders. The visas are valid for three years and renewable for another three, with extensions possible if an employer sponsors an applicant for permanent residency. However, Indians face a decades-long Green Card backlog, and the higher costs may force companies to reconsider continuing sponsorship.

Explaining the rationale, Lutnick said, “No more will these big tech companies or other big companies train foreign workers. They have to pay the government USD 100,000, then they have to pay the employee. So it's just not economic. 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.” He added that major companies had already been consulted and were “on board” with the plan.

Trump echoed this view, saying tech firms “love it” and would continue to have access to highly skilled individuals. “The main thing is, we're going to have great people coming in,” he said.

In addition, Trump signed an executive order launching a new pathway called the ‘Gold Card’, targeted at foreigners of “extraordinary ability.” Under this programme, individuals who pay USD 1 million to the US Treasury, or USD 2 million if sponsored by a corporation, will receive expedited visa processing and a route to permanent residency.

“The Gold Card will be taking in hundreds of billions of dollars, and companies will be able to keep some people they need. They need people of expertise, great expertise,” Trump said.

Asked whether the new H1-B fee would apply to existing holders or only new applicants, Lutnick clarified that it would cover both renewals and first-time applications. “Either the person is very valuable to the company and America, or they're going to depart and the company is going to hire an American. That’s the point of immigration,” he said.

Trump added that companies hiring foreign workers under the revised rules would remain satisfied. “Everyone's going to be happy. And we're going to be able to keep people in our country that are going to be very productive people,” he said.

(With inputs from PTI)