Trump Proposes $100,000 H-1B Visa Fee Hike, Sending Shockwaves Through the Tech Industry

U.S. President Donald Trump has unveiled plans to impose a staggering $100,000 fee on H-1B visa applications—a move poised to send shockwaves through the technology sector, which relies heavily on foreign talent. According to reports on Friday, the Trump administration argues that widespread misuse of the H-1B program has displaced American workers. In addition to the fee hike, Trump intends to direct the Department of Labor to revise wage standards for H-1B holders, aiming to prevent companies from using foreign workers to suppress wages for U.S. employees. Established by Congress in 1990, the H-1B program has long served as the primary gateway for highly skilled foreign professionals to work in the United States. India remains its largest beneficiary, accounting for 71% of approvals last year. Given the overwhelming demand, visas are allocated through a lottery system, though certain nonprofit institutions like universities are exempt from caps. Following the announcement, Cognizant—a company deeply reliant on H-1B hires—saw its stock plunge nearly 5% on Friday. For technology giants and outsourcing firms, the H-1B program is indispensable, enabling them to fill critical technical roles at scale. The proposed $100,000 fee threatens to dramatically increase operational costs and reshape recruitment strategies. Data from the U.S. Citizenship and Immigration Services shows Amazon secured more than 10,000 H-1B approvals in 2025 alone, while Microsoft and Meta each obtained over 5,000. These visas primarily bring in software engineers, technical project managers, and IT specialists from countries such as India. Each visa permits employment in the U.S. for three to six years, with the possibility of pursuing a green card. Although the program issues 85,000 visas annually, hundreds of thousands of applications flood the system every year, forcing a lottery to determine recipients. Inside the Trump administration and among his political base, the program remains divisive. Some within the MAGA movement argue it unfairly gives high-paying jobs to foreign workers, particularly Indian men, at the expense of Americans. Joseph Edlow, Director of U.S. Citizenship and Immigration Services, has openly questioned the program and previously pushed for rules prioritizing higher-paying applicants—a measure ultimately shelved by the White House. Still, other Republicans argue the H-1B program is vital for securing global talent, and high-profile figures like Tesla CEO Elon Musk have been vocal supporters. Yet Musk’s departure from the administration earlier this year left the program without one of its most influential advocates. Key details about Trump’s proposed $100,000 fee remain unclear, including who would shoulder the cost and how it would be implemented. Legal experts note that visa fees are typically set by Congress or through a formal rulemaking process requiring months of public input, raising doubts about whether a presidential directive alone could withstand legal scrutiny. If challenged, the plan could face lawsuits questioning its legality. At present, H-1B applicants pay a modest entry fee to enter the lottery, with successful candidates paying additional charges for full application processing. Trump’s proposed overhaul, however, could mark the most dramatic shift in the program’s history—one that could redefine how global talent flows into America’s most powerful tech companies.