Trump Tightens H1B Visas, Raising Alarm in US Tech Industry

In a dramatic shake-up of America’s skilled worker visa system, US President Donald Trump has signed a proclamation imposing an annual fee of USD 100,000 on H-1B visa applications. The order, which takes effect on September 21, introduces sweeping financial and compliance obligations for companies employing foreign workers, especially in the IT and technology sectors, according to a report by ANI.

The White House described the move as a crackdown on what it called “systemic abuse” of the programme. Officials argued that the H-1B system, originally intended to bring in highly qualified global talent on a temporary basis, has been increasingly misused by outsourcing companies to replace American workers with lower-paid foreign employees.

According to government data cited in the proclamation, the share of tech workers among H-1B approvals has surged from 32% in 2003 to over 65% in recent years. The administration claims this expansion has coincided with layoffs of US workers, wage suppression, and even cases where dismissed staff were required to train their overseas replacements.

Also Read: Amid H1-B Visa Fee Hike, Trump Launches 'Gold' and 'Platinum' Visa Schemes | Republic World

The order also highlights security concerns, citing investigations into outsourcing firms accused of visa fraud, money laundering, and racketeering-related offences. “Abuse of the H-1B programme is not only an economic challenge but a national security threat,” the proclamation states.

The new rules require employers to furnish proof of payment of the USD 100,000 fee while filing petitions. Enforcement will fall under the Department of Homeland Security and the State Department, which are tasked with denying entry to any H-1B applicant whose sponsor fails to comply.

While exemptions are technically possible if the employment is deemed in the US national interest, officials have indicated such waivers will be rare. Future rulemaking will also focus on revising wage standards to ensure priority is given to “highly skilled and high-paid” applicants.

Critics argue that the measure, though aimed at eliminating fraud, risks shutting out legitimate global talent. They warn that steep costs could discourage companies from hiring specialised workers, undermining innovation and weakening the very tech leadership the US seeks to protect.