President Donald Trump has signed a sweeping proclamation that makes it dramatically more expensive for foreign professionals to work in the United States. Companies sponsoring H-1B visas will now have to pay an annual fee of USD 100,000 per worker – a measure the White House claims is designed to ensure only the “most extraordinary” talent is allowed in.
Staff secretary Will Scharf branded the H-1B programme “one of the most abused visa systems,” saying it had long been used to replace Americans with cheaper foreign labour. Commerce secretary Howard Lutnick argued that the system historically admitted workers earning less than the average American and relying more on government aid. “Either the person is extraordinarily valuable, or they go home and you hire an American,” Lutnick said.
The administration insists the six-figure levy will deter companies from bringing in large numbers of overseas workers and push them to hire graduates from US universities instead. Trump, however, brushed aside concerns from Silicon Valley, saying tech companies “love it” because it guarantees “great people” will stay in the system.
The impact is expected to fall heaviest on Indians, who make up the majority of H-1B holders. With visas valid for three years and renewable for another three, employers could end up paying more than half a million dollars to retain a single worker across the six-year period. The financial strain could see firms cut back on sponsoring Indians, many of whom are already stuck in a decades-long wait for Green Cards.
Alongside the steep fee, Trump unveiled a new immigration pathway called the “Gold Card.” Under the scheme, foreigners of “extraordinary ability” can gain expedited visas and a route to permanent residency by paying USD 1 million to the US Treasury, or USD 2 million if a corporation is sponsoring them. Trump claimed the measure would generate “hundreds of billions of dollars,” which the government would use to cut taxes and reduce national debt.
The new rules apply to both fresh applicants and renewals, forcing companies to decide whether retaining foreign staff is worth the cost. For Indian engineers and technology workers, the proclamation deepens long-standing anxieties about job security and residency prospects in the United States.