Trump Slams H-1B Visas with $100,000 Fee, Targeting Program that Launched Tech Giants

Trump Hits H-1B Visas with $100,000 Fee, Targeting Program that Launched Elon Musk and Instagram In a move aimed at curbing what it calls 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. This significant increase from the current $215 lottery registration fee is part of the administration's efforts to crack down on companies that rely heavily on foreign workers in fields like IT, engineering, and mathematics. According to the White House, the share of IT workers with H-1B visas has skyrocketed from 32% in 2003 to over 65% today. Meanwhile, unemployment among recent computer science graduates has hit 6.1%. The administration blames the program for displacing American workers and argues that the increased fee will help deter companies from exploiting the system. "This is a necessary step to protect American workers," said a White House spokesperson, who requested anonymity. "We cannot continue to allow companies to use H-1B visas as a way to undercut wages and displace native-born workers." The H-1B program allows U.S. companies to hire foreign workers in fields that typically require technical expertise. The visas are awarded through a lottery system and typically last three years, though holders can extend them or apply for green cards. Critics of the new policy argue that it will have unintended consequences, such as driving up costs for companies and potentially limiting their ability to innovate and grow. "This is a misguided attempt to address what the administration perceives as a problem," said Ron Hira, an economist at Howard University who specializes in immigration and labor issues. "The reality is that many of these companies are creating jobs and opportunities for American workers, not displacing them." Background on the H-1B program shows that it has been a crucial pathway to success for many prominent tech entrepreneurs, including Elon Musk, who co-founded PayPal with an H-1B visa holder, and Kevin Systrom, the co-founder of Instagram, who also relied on the program. The new policy takes effect immediately, and companies will be required to pay the increased fee for all new H-1B visa applications. The administration has not yet announced any plans to adjust the cap on the number of visas issued annually or to address concerns about the program's impact on American workers. As the tech industry reacts to the news, one thing is clear: the future of the H-1B program and its role in shaping the U.S. workforce hangs in the balance. *Reporting by Techcrunch.*