President Trump recently intensified his sweeping immigration crackdown by focusing on the H-1B visa program for skilled foreign workers. He signed a proclamation introducing a significant $100,000 fee for new applicants seeking these visas, which allow professionals like software engineers to work in the United States.
The H-1B visa was initially created to help companies fill specialized roles when qualified American workers aren’t readily available. However, critics, including immigration hard-liners and some conservative activists, have long argued that the program enables companies to replace American workers with foreign talent. This issue has even caused division among Mr. Trump’s own supporters, and his stance on the program has evolved over time.
Before signing the new proclamation in the Oval Office, Howard Lutnick, the secretary of commerce, justified the administration’s new fee, labeling the H-1B as the ‘most abused visa.’
“The core idea is that major tech companies and others will no longer train foreign workers,” Mr. Lutnick explained. “They will be required to pay the government $100,000, and then pay the employee — making it economically unfeasible. If training is necessary, it should be directed toward recent graduates from our excellent universities across the nation.”
The newly imposed fee is expected to face legal challenges. It is scheduled to take effect on September 21st and will apply only to new applicants, according to a memo issued by U.S. Citizenship and Immigration Services on Saturday.
Here’s a breakdown of what you need to know about these changes.
What is the H-1B visa program?
Congress established the H-1B program in 1990 to address an anticipated labor shortage. When President George Bush signed the legislation, he stated that it would “encourage the immigration of exceptionally talented people, such as scientists, engineers, and educators.”
Employers utilize these visas, which are valid for three years and can be extended, to recruit foreign workers with specialized skills, primarily in science and technology. The goal is to fill positions for which suitable American candidates are not found.
The process involves employers submitting a petition to the government on behalf of a foreign worker, detailing the job and the individual’s qualifications. While the H-1B program grants temporary status in the U.S., not permanent residency, many employers eventually sponsor these workers for a green card, providing a pathway to U.S. citizenship.
By Saturday, there was still confusion regarding the fee’s implementation. Mr. Lutnick had indicated on Friday that the $100,000 fee would be an annual payment made by the American company hiring the foreign worker. However, White House press secretary Karoline Leavitt later clarified on social media that it would be a one-time charge.
Who are the workers under the program?
Each year, Congress allocates 65,000 H-1B visas for workers holding a bachelor’s degree or its equivalent, with an additional 20,000 reserved for those with a master’s degree or higher. Universities and research organizations are exempt from these numerical caps.
The majority of H-1B visa recipients are software engineers, computer programmers, and other professionals within the technology industry. Last year, companies like Amazon, Google, Meta, Microsoft, Apple, and I.B.M. were among the largest employers of H-1B visa holders, as reported by U.S. Citizenship and Immigration Services. However, a significant number of H-1B workers also pursue careers in other fields, including education, healthcare, and manufacturing.
There is no per-country cap for the visa, leading to a substantial majority — typically between two-thirds and three-quarters — of recipients originating from India.
India’s Ministry of External Affairs publicly addressed its concerns, noting the strong ties between the two nations and expressing worry about the “humanitarian consequences” that these sudden changes could have on families. Many H-1B visa holders reside in the U.S. with their spouses and children, who often remain in the country for decades on dependent visas.
Why has the H-1B visa program been criticized by some Republicans?
Currently, there are approximately 730,000 H-1B holders in the United States, a figure estimated earlier this year by fwd.us, an immigration advocacy group. This represents a small fraction of the more than 163 million people employed as of September.
Critics of the visa argue that American employers frequently leverage H-1B visas to hire foreign workers who are willing to accept lower wages than American candidates for the same positions. Many of these critics are Republicans who align with Mr. Trump’s hard-line immigration policies.
Conversely, some of Mr. Trump’s prominent supporters are leaders in the tech industry, which heavily relies on H-1B workers. These employers contend that they cannot find enough qualified American professionals to fill specialized roles.
The announcement of the new fee has caused widespread chaos and uncertainty across various industries, with the tech sector of the economy expected to be particularly hard hit.
Do H-1B holders replace American workers?
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.
However, there have been instances where the program was used to replace American workers. In 2015, around 250 technology employees at Walt Disney World in Orlando, Fla., were laid off and instructed to train their replacements — H-1B visa holders brought in by an Indian outsourcing firm. Similar situations occurred that year, affecting employees at Toys “R” Us and the New York Life Insurance Company.
The program mandates that H-1B workers receive at least the average prevailing wage for their job in the specific city, or the average wage of American-born workers performing the same job. Companies are explicitly prohibited from paying H-1B workers less than other employees with comparable skills and qualifications. Despite this, a 2019 report by the Economic Policy Institute indicated that approximately 60 percent of H-1B positions paid “well below” the local median wage for the occupation, attributing this discrepancy to the Labor Department’s “broad discretion” in setting H-1B wage levels.