US President Donald Trump signs a proclamation to overhaul the H-1B visa programme, introducing an annual fee of $100,000 per application. The move is designed to curb reliance on foreign talent and incentivise the hiring of domestic workers across technology and engineering sectors.
Addressing the White House, Trump asserts, “The incentive is to hire American workers. We need great workers, and this pretty much ensures that.”
Commerce Secretary Howard Lutnick adds that the new policy will discourage companies from training foreign hires at subsidised costs.
The government now allows applicants to renew H-1B visas for a maximum of six years, applying this rule to both new and existing visas.
The Department of Labour will review prevailing wage levels to prevent exploitation of lower-paid foreign workers. Trump and Lutnick maintain that the major tech companies support the changes and are ready to comply.
Additionally, the president signs an executive order establishing a ‘gold card’ visa programme, offering visas to individuals for $1 million and corporations for $2 million.
Impact on Indian Professionals & Tech Firms
India-born workers currently hold the largest share of H-1B visas, accounting for approximately 73 per cent of approvals in 2023, followed by China at 12 per cent.
Experts say the new fee may affect US tech firms that depend heavily on Indian talent for specialised and high-skilled roles.
The Department of Homeland Security has also proposed ending the lottery system in favour of a ‘weighted selection process’.
Meanwhile, the US Department of Justice, led by India-born Assistant Attorney General Harmeet Dhillon, intensifies scrutiny of companies allegedly favouring foreign workers over American citizens.
While Trump insists the move benefits the US economy and workforce, industry leaders have expressed concern.
In the past, Tesla CEO Elon Musk and other executives have defended the H-1B programme, warning that restrictions could harm innovation. Trump had previously endorsed H-1B visas, claiming personal experience and support for the scheme.
The changes mark a significant shift in US immigration policy, potentially reshaping global talent mobility and impacting India’s skilled professionals.
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