"Trump Slams H-1B Visas with $100,000 Fee: Tech Giants' Lifeline Under Siege"

President Trump Introduces $100,000 Fee for H-1B Visa Applications, Sparking Debate Over Program's Future In a move aimed at combating what the administration sees as widespread abuse of the program, President Trump signed a proclamation on Friday requiring employers to pay a hefty $100,000 fee for new H-1B visa applications. The significant increase in cost is set to take effect immediately, with companies now facing a substantial financial burden when hiring foreign workers through the program. The H-1B visa program allows U.S. companies to hire technical experts from abroad, with 65,000 new visas awarded annually, plus an additional 20,000 for foreign graduates with advanced degrees from U.S. universities. The program is capped and operates on a lottery system, with successful applicants typically receiving three-year visas that can be extended or used as a stepping stone to green card status. According to the White House, the new fee is designed to combat what it sees as widespread abuse of the program, including instances where companies have been accused of exploiting foreign workers. However, critics argue that this will disproportionately affect tech startups and small businesses in Silicon Valley, which rely heavily on the H-1B program to attract top talent. "This move will stifle innovation and hinder the growth of new companies," said a spokesperson for the National Venture Capital Association, who wished to remain anonymous. "The H-1B program has been instrumental in launching some of the world's most successful tech giants, including Instagram and Tesla, which was founded by Elon Musk after he entered the country on an H-1B visa." TechCrunch reported that Trump's move is part of a broader effort to reform the immigration system and prioritize American workers. However, experts argue that this approach may have unintended consequences, such as driving talented foreign workers underground or forcing them to seek employment outside of the formal economy. The new fee has sparked widespread criticism from industry leaders and advocacy groups, who warn that it will disproportionately affect small businesses and startups. "This is a devastating blow to our community," said Freada Klotz, executive director of the National Association for Multi-Ethnicity in Computing (NAMIC). "We urge the administration to reconsider this decision and find more targeted solutions to address any perceived abuses." As the debate over the H-1B program's future continues, it remains to be seen how companies will adapt to the new fee. With the program's cap already in place, many are left wondering whether the increased cost will lead to a shortage of skilled workers or force companies to seek alternative solutions. The White House has yet to comment on when or if the administration plans to revisit the H-1B program's fees or regulations. As the situation unfolds, one thing is clear: the future of the H-1B program and its impact on the tech industry hang in the balance. This story was compiled from reports by TechCrunch and TechCrunch.