President Trump further intensified his immigration crackdown on Friday, directing his attention toward a vital visa program for skilled foreign workers. He enacted an executive order imposing a hefty $100,000 fee on new H-1B visa applicants, affecting professionals such as software engineers seeking employment in the United States.
While the H-1B visa program was created to assist companies in recruiting foreign workers for specialized roles where American talent is scarce, it has long been a flashpoint for criticism. Immigration hard-liners and far-right groups contend that the visa is exploited by companies to substitute American employees with foreign labor. This contentious issue has even caused rifts among Mr. Trump’s own base, and his personal views on the program have evolved significantly.
Before the executive order was officially signed in the Oval Office on Friday, Secretary of Commerce Howard Lutnick articulated the administration’s justification for imposing this fee on what he described as the “most abused visa” program.
Mr. Lutnick explained the new policy’s core objective: “The intent is clear; major tech corporations and other businesses will no longer be able to simply train foreign workers. They will now face a mandatory $100,000 payment to the government, in addition to the employee’s salary, rendering such practices economically unviable. The expectation is that if training is required, it will be provided to recent graduates from American universities.”
This new fee is expected to encounter legal opposition. It is scheduled to become effective on September 21 and will apply exclusively to new H-1B visa applications, as detailed in a Saturday memo from U.S. Citizenship and Immigration Services.
Here’s a breakdown of the key aspects of this program and its recent changes:
What exactly is the H-1B visa program?
The H-1B program was established by Congress in 1990 in response to an anticipated labor shortage. Upon signing the legislation into law, President George Bush stated its aim was to “encourage the immigration of exceptionally talented people, such as scientists, engineers and educators.”
These visas, initially valid for three years with extension possibilities, have been utilized by employers to recruit foreign professionals with niche skills, primarily in the science and technology sectors. The program’s intent is to fill roles where a sufficient pool of American workers with comparable qualifications is unavailable.
The process involves employers petitioning the government for a specific foreign worker, outlining the job description and the candidate’s qualifications. While the H-1B visa grants temporary authorization to work in the U.S., it does not confer permanent residency. Nevertheless, many employers ultimately sponsor H-1B workers for a green card, providing a pathway to U.S. citizenship.
Significant uncertainty persists regarding the new fee’s implementation. On Friday, Mr. Lutnick asserted it would be an annual payment made by the hiring American company. However, White House press secretary Karoline Leavitt later clarified on social media that the $100,000 fee would be a one-time charge.
Who typically uses the H-1B program?
Each year, Congress allocates 65,000 H-1B visas for individuals holding a bachelor’s degree or its equivalent, with an additional 20,000 visas reserved for those with a master’s degree or higher. Academic institutions and research bodies are not subject to these numerical limitations.
A significant number of H-1B visa recipients are software engineers, computer programmers, and other professionals within the technology sector. Last year, leading companies like Amazon, Google, Meta, Microsoft, Apple, and I.B.M. were among the largest employers of H-1B visa holders, according to U.S. Citizenship and Immigration Services. However, the program also supports workers in diverse fields such as education, healthcare, and manufacturing.
While there are no country-specific caps, an overwhelming majority—approximately two-thirds to three-quarters—of H-1B recipients originate from India.
In a Saturday social media post, India’s Ministry of External Affairs highlighted the strong bilateral ties with the U.S. and voiced apprehension that these sudden policy shifts could lead to “humanitarian consequences” for families. Many H-1B visa holders relocate to the United States with their spouses and children, who often reside there for extended periods on dependent visas.
Why do some Republicans criticize the H-1B visa program?
Approximately 730,000 H-1B visa holders currently reside in the United States, as estimated by the immigration advocacy group fwd.us earlier this year. This figure represents a minor portion of the overall U.S. workforce, which totaled over 163 million people as of September.
Opponents of the visa program frequently assert that American companies leverage H-1B visas to employ foreign workers at reduced salaries compared to domestic candidates seeking identical roles. This critique is widely shared among Republicans who support Mr. Trump’s stringent immigration policies.
Paradoxically, some of Mr. Trump’s key supporters are influential figures in the tech industry, a sector that heavily depends on H-1B workers. These employers argue they struggle to find sufficient qualified American talent to fill these specific positions.
The newly announced fee has already created widespread confusion and disruption across various industries. The tech sector, in particular, is expected to bear a significant impact.
Does the H-1B program lead to American workers being replaced?
To secure an H-1B visa, employers are required to certify that they first sought qualified domestic candidates and that hiring an H-1B worker will not negatively impact the wages or working conditions of American employees.
Instances have occurred where the program facilitated bringing in foreign workers for roles previously held by Americans. For example, in 2015, approximately 250 tech employees at Walt Disney World in Orlando, Florida, were laid off and instructed to train their replacements: H-1B visa holders recruited by an Indian outsourcing firm. That same year, similar situations impacted employees at Toys “R” Us and the New York Life Insurance Company.
Employers are mandated to pay H-1B workers at least the prevailing wage for their specific job and location, or the average wage earned by American-born counterparts in the same role. While companies are barred from underpaying H-1B workers compared to similarly qualified staff, a 2019 analysis by the Economic Policy Institute revealed that about 60 percent of these positions offered salaries “well below” the local median wage for the occupation. The institute attributed this disparity to the Labor Department’s extensive leeway in determining H-1B wage levels.