Trump’s H-1B Crackdown: How a $100,000 Fee Will Reshape Legal Immigration
The Trump Administration makes major changes to the H-1B visa. Source: Shutterstock.
On September 19th, President Trump signed a proclamation that fundamentally undermines the structure of the H-1B visa program in the United States. The update that caught the most attention was the additional $100,000 fee for all new H-1B visa petitions, which, along with other changes, sparked rightful outrage about the future of legal immigration to the United States. H-1B visas are a common work visa for foreign citizens that grants highly skilled workers the right to stay in the United States. In 2024 alone, around 400,000 applicants for H-1B visas were approved, with the majority of those in the technology and computer science industries. These visas have long been an important way for foreign workers to come to the U.S., often with the hopes of obtaining a green card or other long-term visa.
The proclamation caused pandemonium, with many workers traveling back to the United States before the new rules were mandated, and companies ordering their workers to return. For current H-1B visa holders, this was not only a bureaucratic change but also a concern for the future of their lives in the United States. Soon after, the White House attempted to calm the commotion, clarifying that the new charge only applies to new petitions and that there are exceptions for the hiring of workers deemed to be “in the national interest.”
Even before this mandate, the H-1B visa was far from accessible to all. Due to the high volume of applicants, the visa ran on a random lottery, with Trump now dangerously proposing to alter the lottery to prioritize higher wealth-bracket jobs. Furthermore, this change comes against the backdrop of broader immigration tensions, from ICE raids to family separations to visa withdrawals. Contrary to Trump’s campaign rhetoric, such as his promise to guarantee all foreign graduates of American universities a green card, his administration is shaping a future where a legal path to immigration is becoming increasingly difficult to obtain. All of these developments are part of the Trump administration’s anti-immigration policy shift, which is a growing concern for U.S. citizens and non-citizens alike.
The argument at the forefront of this policy change is that it will help increase American employment by incentivizing companies to hire natural-born Americans in place of foreign workers. In theory, this high fee may encourage some employers to rethink their hiring decisions, but in reality, employers are more likely to leave those positions unfilled. In certain specialized industries, the U.S. labor market is not prepared to meet the full demand, and it’s shortsighted to ignore the possibility that this change will increase inflation, stifle innovation, and cut off necessary foreign talent. Many current H-1B visa holders are graduates of U.S. colleges and universities, but they won’t be able to bring their skills and expertise to the market due to these changes.
Additionally, it’s naive to believe that companies won’t find ways to work around the changes in the proclamation. Many firms simply cannot afford the fee and will try to offshore their work by hiring employees in foreign offices and increasing remote work. While only companies with sufficient capital can do this, it has become a popular approach, especially with the rise of global business and remote employment. Furthermore, companies will inevitably find ways to hire the same workers through different visa types, such as O-1 visas (for workers with extraordinary abilities) or TN visas (for Canadian or Mexican workers). Other companies will petition directly for green cards, skipping the H-1B step altogether.
Ultimately, these changes are bound to come with many negative consequences. In addition to the potential economic repercussions of higher costs and fewer filled positions, this proclamation will continue to cause political polarization and widespread uncertainty, all while reducing international representation. Future talent shortages in the U.S., with foreign workers choosing to immigrate to other developed countries like Canada or the United Kingdom, are also highly concerning. This shift will reduce the United States’ competitiveness on the world stage while also straining foreign relations. Additionally, foreign students will see these changes and be fearful of their future opportunities after graduation, leading to reduced international enrollment in U.S. institutions. Finally, this fee is regressive, hurting smaller businesses that cannot afford such a large cost, stifling innovation, and discouraging new ventures, often considered the core of American entrepreneurship. Small business owners have become fearful of what these changes mean for their business, with business owners explaining “there's no way we can afford $100,000.” In implementing this fee, the Trump administration has threatened the backbone of small businesses that keep many local American economies thriving.
With this change comes a high level of irony: the Trump administration condemns undocumented immigrants, arguing that they must find a way to immigrate legally. However, at the same time, the administration is limiting paths to legal immigration, reinforcing its anti-immigration stance. If the United States wants to remain a global leader for innovation and business, it must reconsider its policies that punish those who dream of contributing. This $100,000 fee not only brings significant political, economic, and social consequences, but it also contradicts key American values and the policies that have built the US into what it is today.