US President Donald Trump has signed an executive order that will add a $100,000 (£74,000) fee for applicants to the H-1B visa programme aimed at bringing in skilled workers from abroad into certain industries.
The proclamation mentions abuse of the programme and will restrict entry unless payment is made.
Critics of the programme have long argued that H-1Bs undercut the American workforce, while supporters - including billionaire Elon Musk - argue it allows the US to attract top talent from around the world.
In another order, Trump set up a new gold card to fast-track visas for certain immigrants in exchange for fees starting at £1m.
Joining Trump in the Oval Office was US Commerce Secretary Howard Lutnick, who stated, A hundred thousand dollars a year for H1-B visas, and all of the big companies are on board. If you’re going to train somebody, you’re going to train one of the recent graduates from one of the great universities across our land. Train Americans. Stop bringing in people to take our jobs.
Since 2004, the number of H-1B applications has been capped at 85,000 per year. Until now, H-1B visas have carried various administrative fees totaling around $1,500.
Data from US Citizenship and Immigration Services (USCIS) shows that applications for H-1B visas for the next fiscal year fell to about 359,000 - a four-year low.
The greatest beneficiary of the programme the previous fiscal year was Amazon, followed by tech giants Tata, Microsoft, Meta, Apple and Google, according to government statistics.
Tahmina Watson, a founding attorney at Watson Immigration Law, expressed concern that the new ruling might be a nail in the coffin for many of her clients, predominantly small businesses and start-ups. Nine out of ten of these companies can't find workers to do the job, she mentioned.
Jorge Lopez, chair of the immigration practice at Littler Mendelson PC, argued that the fee would hinder American competitiveness in the tech sector and could compel some companies to establish operations outside the US.
This move comes amidst an ongoing debate about H-1Bs that has split Trump's team, with some supporting the visas while others, like former strategist Steve Bannon, oppose them.
Trump previously promised during his 2016 campaign to simplify the visa process for attracting talent and even proposed green cards for college graduates.
However, in early 2017, Trump signed an order increasing scrutiny of H-1B applications, resulting in a significant rise in visa rejections. The ongoing debate has caused alarm in countries like India, the largest source of H-1B applications.
