President Trump Increases H-1B Visa Fees, Aiming to Combat Abuse and Protect U.S. Workers
The White House announced on Friday that President Trump has signed a proclamation increasing fees for new H-1B visa applications, marking a significant increase from the current $215 lottery registration fee to a hefty $100,000. This move aims to tackle what the administration perceives as widespread abuse of the program, which they believe displaces American workers.
The H-1B visa program allows U.S. companies to hire foreign workers in fields that typically require technical expertise such as IT, engineering, mathematics, or medicine. The annual cap for new visas stands at 65,000, with an additional 20,000 set aside for foreign graduates holding advanced degrees from U.S. universities. The visas are awarded through a lottery system and typically last for three years, although extensions and green card applications are possible.
The administration’s new policy comes amid concerns about the increasing share of IT workers with H-1B visas, which has risen from 32% in 2003 to over 65% today. This trend coincides with rising unemployment among recent computer science graduates, currently at 6.1%.
Notably, tech giants may face opposition to this initiative, given its potential impact on a program that has played a significant role in the creation of many regional success stories. Elon Musk, for instance, initially worked in the U.S. on an H-1B visa after arriving as a student and has been vocal about the program’s importance.
Mike Krieger, Instagram co-founder turned Chief Product Officer at AI giant Anthropic, is another success story attributed to the H-1B program. Krieger, a Brazilian-born Stanford graduate, worked at early instant messaging platform Meebo on an H-1B visa.
In response to this policy change, the National Venture Capital Association has argued that increasing the annual cap of H-1B visas would be beneficial for generating more successful immigrant-founded companies. The association emphasized that while H-1B visas are not ideal for immediate company founding in the U.S., they are crucial for providing valuable work experience and expanding the pool of potential immigrant startup founders.
On Friday, tech leaders voiced concerns about the potential loss of talent to more welcoming countries. The administration’s proclamation also includes case-by-case exemptions if deemed necessary in the national interest. Additionally, it directs the Labor Secretary to revise wage requirements to prevent undercutting American salaries.
