Trump’s New Proclamation: $100K Annual Fee on H-1B Visa Applications — What It Means for Job Seekers and Employers

Changes in U.S. Visa Policies: A Closer Look

On a recent Friday, President Trump announced significant changes to U.S. visa policies. One of the key changes is a hefty increase in visa fees for highly-skilled foreign workers. The annual fee has jumped from $215 to $100,000. Additionally, a new “gold card” visa is on offer, costing $1 million and providing a pathway to citizenship for wealthy individuals.

This move could lead to a sharp decline in the number of H-1B visas issued. These visas are typically granted to skilled workers, particularly in the tech industry. Commerce Secretary Howard Lutnick remarked that the new fees would likely deter many U.S. companies from sponsoring foreign workers.

Tech giants like Amazon and Google have remained silent so far on this policy change. However, supporters of the move believe it may help keep jobs in the United States. Some critics, however, view these changes as detrimental, pointing out that many skilled workers come from abroad and contribute significantly to the economy.

Historically, H-1B visas have been awarded through a lottery system. In recent years, Amazon has consistently ranked as the biggest recipient, with thousands of visas issued annually. California has been a primary location for H-1B visa holders.

Interestingly, many believe that H-1B visas often go to entry-level roles, rather than highly specialized positions. This raises concerns about how wages are set, as companies may categorize jobs at lower skill levels to save on costs. As a result, some businesses are opting to hire from consulting firms that bring in foreign workers at lower wages.

In 2024, the lottery bids for these visas declined by almost 40%. This drop was attributed to efforts to curb system abuse, where individuals submitted multiple applications to improve their chances of selection. The U.S. Citizenship and Immigration Services (USCIS) has since limited applicants to one lottery entry, regardless of how many job offers they have.

An interesting twist in the H-1B history is the story of First Lady Melania Trump, who was granted an H-1B work visa in 1996 while working as a model. She originally hails from Slovenia, underscoring the diverse backgrounds of H-1B holders.

While some groups have applauded these changes, others argue that more reforms are necessary. The AFL-CIO, for example, wants visas allocated based on wage levels instead of a random lottery system.

As this situation unfolds, it will be important to see how these changes impact the tech industry and the broader economy. For now, the conversation around visa reform and its implications for American workers and the economy continues.

For additional insights, you might refer to the U.S. Citizenship and Immigration Services (USCIS) official website.

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