Trump’s $100,000 H-1B fee explained: What it means for IT giants and foreign workers

US President Donald Trump has signed an executive order introducing a $100,000 annual fee for H-1B visa applications, effective 21 September 2025.

The move marks one of the most sweeping overhauls of the programme in decades and is expected to hit the tech industry hard, particularly companies that rely on Indian and Chinese workers.

White House officials defended the decision, calling the H-1B “one of the most abused visa systems”. They argued the new fee will ensure companies bring in “only truly highly skilled” workers rather than cheaper replacements for Americans.

What happened?

The Trump administration has taken one of its most aggressive steps yet to reshape the H-1B visa system. The visa fee has been increased nearly 500-fold, placing an unprecedented financial burden on companies that depend on foreign talent.

• Trump signed an executive order raising the H-1B fee from $215 to $100,000.

• Workers will be barred from entering the US unless the fee is paid.

• The rule takes effect on September 21, 2025.

Why it matters

The H-1B programme is the backbone of the US tech industry’s foreign hiring. Indians, who make up the majority of skilled workers under the scheme, will be the hardest hit. This shift could upend recruitment, delay projects and disrupt global IT mobility.

• H-1B is the main route for skilled foreign workers, especially in tech.

• Indians are the largest beneficiaries, accounting for 71% of approved visas last year.

• Indian IT firms and employees will be disproportionately affected.

Will companies rethink hiring?

With H-1B visa costs soaring to $100,000, companies may rethink hiring strategies. Many could reduce reliance on foreign workers, shift more projects offshore, or prioritise domestic talent. The change risks disrupting project timelines and global talent mobility.

Are H-1B hikes making the US less attractive?

For of H-1B holders or applicants, the new fee creates a steep financial barrier. While current visa holders aren’t immediately affected, costly renewals could limit career growth and job mobility.

The US may become less attractive for skilled tech workers compared with countries like Canada, the UK, or the UAE.

How companies are reacting

Global corporations are scrambling to protect their workforce. Many have issued urgent travel advisories, warning employees to stay put in the US or return before the new rules kick in.

• Meta: Told H-1B and H-4 employees in the US to stay for at least two weeks; asked those abroad to return within 24 hours.

• Microsoft: Strongly advised staff in the US not to travel; urged those abroad to return immediately.

• Amazon: Advised H-1B and H-4 holders to remain in the US “for now.”

• JP Morgan: Ordered staff abroad to return before the deadline; told those in the US to avoid international travel.

Who will be hit the hardest?

The burden of the new fee will fall most heavily on the very companies that fuel America’s tech economy. Already facing high processing costs, they may now be forced to overhaul their hiring strategies.

• Additional charge will hit major tech employers dependent on H-1B visas.

• Current costs already range from $1,700 to $4,500 per application.

• Top H-1B employers (USCIS, June 2025):

  • Amazon: 10,044 workers

  • TCS: 5,505

  • Microsoft: 5,189

  • Meta: 5,123

  • Apple: 4,202

  • Google: 4,181

Why is Trump targeting H-1B?

The White House says the system has long been exploited by outsourcing firms to undercut wages and replace American jobs. Officials have also raised national security concerns to justify the crackdown.

• Administration argues the system is abused by outsourcing firms.

• Share of IT workers on H-1B visas: 32% in 2003 → 65% in recent years.

• Employers save about 36% on entry-level H-1B hires compared with US workers.

• Security concerns: cited cases of visa fraud, money laundering and other abuses.

What’s new: Trump’s 'Gold Card' visas

While tightening rules for skilled workers, the administration has unveiled premium alternatives for the wealthy — a move critics say creates a two-tier system.

• Trump Gold Card: $1m for individuals; includes residency and work rights.

• Trump Platinum Card: $5m; allows up to 270 days in the US without tax liability.

• Trump Corporate Gold Card: $2m; for companies, transferable between employees.

Bottom line

If upheld, the executive order will reshape how global firms hire in the US. With costs skyrocketing, tech giants may rethink operations, while thousands of Indian professionals could face stalled careers and lost opportunities.

• Policy could dramatically raise costs for Amazon, Microsoft, Meta, TCS and others.

• Move risks reshaping the US job market.

• Thousands of Indian professionals stand to lose the most.