Trump’s H-1B Visa Change: What to Know

Clara Fong and Diana Roy

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However, the H-1B program has long faced criticism over claims that it displaces American workers and suppresses wages. Citing this, President Donald Trump announced in late September a significant increase to the fee that employers must pay for new H-1B petitions. Some experts warn this change could harm the U.S. economy, undermine competitiveness with China, and drive highly skilled talent to other countries.

Why did Trump impose a new $100,000 fee for H-1B petitions?

The Trump administration has contended that the H-1B program undermines the president’s “America First” agenda, which seeks to prioritize American workers over foreign labor. On September 19, Trump announced a new policy requiring employers to pay a one-time $100,000 fee for new H-1B petitions filed on or after September 21, effective for one year. Previously, fees typically ranged from approximately $2,000–$5,000 per application, depending on the size of the company applying for the visa. Trump’s proclamation said there had been “systemic abuse” of the program, and that it undermined U.S. economic and national security by undercutting American wages and outsourcing tech jobs. (The new plan includes a provision for a “national interest” exemption on a case-by-case basis.)

The Trump administration also proposed [PDF] overhauling the existing H-1B lottery system with a weighted process that would favor higher skilled and higher paid foreign workers. The change, according to the Department of Homeland Security, would disincentivize employers from using the program to “fill lower paid or lower skilled positions.”

These actions are in line with the administration’s broader trade agenda to prioritize American businesses and workers while curbing foreign competition, including by implementing tighter restrictions on legal immigration to the United States. However, experts say the dramatic H-1B fee increase could ultimately harm the economy by turning away highly skilled foreign talent.

What is an H-1B visa?

Established by the Immigration Act of 1990, the H-1B program allows employers to temporarily hire foreign professionals in “specialized occupations” that require at least a bachelor’s degree or the equivalent. According to the immigration advocacy group FWD.us, there are currently as many as 730,000 H-1B visa holders living in the United States, along with an additional 550,000 dependents, including spouses and children.