Trump to Impose $100,000 Annual Fee on H-1B Visas, Sending Shockwaves Through Tech Industry

The Trump administration announced on Friday that companies will be required to pay $100,000 annually for each H-1B work visa. The move has triggered alarm among major technology firms, some of which have warned employees on H-1B visas to either remain in the U.S. or return immediately before the new fee structure takes effect.

The change marks a major blow to the tech sector, which relies heavily on skilled workers from countries such as India and China. Since taking office in January, Trump has launched a broad immigration crackdown, including measures to restrict certain forms of legal immigration. The H-1B overhaul represents the administration’s most high-profile attempt yet to reshape temporary work visas.

U.S. Commerce Secretary Howard Lutnick defended the decision, saying: “If you’re going to train someone, you should be training a recent graduate from one of our great universities. Train Americans. Stop bringing in people to take our jobs.”

Trump’s threat to tighten H-1B rules has become a flashpoint with the tech industry, which contributed millions to his presidential campaign. According to internal emails reviewed by Reuters, Microsoft, JPMorgan, and Amazon advised their H-1B employees to remain in the U.S. and urged those abroad to return before the new fee takes effect at midnight Saturday (0400 GMT Sunday).

A JPMorgan email sent via its immigration law firm Ogletree Deakins stated: “H-1B visa holders currently in the U.S. should remain here and avoid international travel until the government issues clear guidelines.”

Neither Microsoft, JPMorgan, Amazon, nor Ogletree Deakins immediately responded to requests for comment.

Critics of the H-1B program, including many U.S. tech workers, argue that it allows companies to undercut wages and bypass American talent. Supporters such as Tesla CEO Elon Musk—himself a naturalized U.S. citizen who once held an H-1B—contend the program brings in highly skilled workers essential for innovation and competitiveness.

A newly signed executive order states that some employers have abused the program to suppress wages, disadvantaging American workers. It also noted that the number of foreign STEM workers in the U.S. more than doubled between 2000 and 2019 to nearly 2.5 million, while overall STEM employment grew just 44.5% in the same period.

Venture capitalist Didi Das of Menlo Ventures warned on X: “Adding massive new fees will deter the world’s brightest talent from coming to the U.S. If America stops attracting top talent, its ability to innovate and grow its economy will be severely weakened.”

Analysts caution the new costs—amounting to hundreds of thousands or even millions of dollars for some firms—will hit smaller tech companies and startups especially hard. Some also warn it could push companies to relocate high-value work overseas, undermining America’s position in the global race for artificial intelligence against China.

Under the proposal, the $100,000 fee would apply annually for the three-year term of each H-1B visa, though Lutnick admitted details are “still being worked out.” Currently, companies pay only nominal lottery entry fees and several thousand dollars in follow-up costs if approved.

Government data shows India remains the largest beneficiary of H-1B visas, accounting for 71% of approvals last year, followed by China at 11.7%. In the first half of 2025 alone, Amazon and AWS received over 12,000 H-1B approvals, while Microsoft and Meta each received more than 5,000.

Shares of Cognizant Technology Solutions, heavily dependent on H-1B workers, fell nearly 5% after the announcement, while U.S.-listed Indian IT firms Infosys and Wipro dropped between 2% and 5%.

The American Immigration Council questioned the legality of the new fees, noting that Congress only authorized the government to recoup processing costs—not impose additional penalties.

The H-1B program currently grants 65,000 visas annually, plus 20,000 more for applicants with advanced degrees. Most costs are borne by employers, and visas are valid for three to six years.

In a related move, Trump also signed an executive order introducing a “Gold Card” pathway to permanent residency for foreign nationals willing to invest $1 million in the U.S.