U.S President Donald Trump has signed a sweeping executive order imposing a $100,000 annual fee on companies applying for H-1B visas, a major visa program for skilled foreign workers, BBC reported on Saturday.
The policy, which takes effect September 21, 2025, marks a significant overhaul of the H-1B system, which has traditionally been vital for tech firms and startups sourcing highly educated global talent.
“Companies need to decide is the person valuable enough to have a $100,000-a-year payment to the government, or should they head home and go hire an American?” said U.S Commerce Secretary Howard Lutnick.
“All of the big companies are on board.”
The new fee structure applies to all new H-1B applications and will be charged annually for up to six years, replacing the previous one-time cost of around $1,500.
The H-1B visa programme, which issues 85,000 visas annually, has long been a cornerstone for companies in the technology and engineering sectors.
But critics of the new policy warn that the dramatic fee increase could have far-reaching consequences.
Immigration attorney Tahmina Watson, based in Seattle, warned that the move would disproportionately impact startups and mid-sized firms.
“This $100,000 as an entry point is going to have a devastating impact,” she said.
“Almost everyone’s going to be priced out. Many small or medium-sized companies simply can’t find qualified Americans to do the job.”
Alongside the H-1B changes, the executive order introduces a “Gold Card” immigration programme, allowing fast-track residency for high-net-worth individuals, with entry fees starting at £1 million.
The move is part of a broader tightening of U.S immigration policy under Trump’s second term.
Last month, the U.S launched a pilot program requiring up to $15,000 bonds for certain tourist and business visa applicants.
In June, a travel ban affecting 12 countries was also enacted, drawing widespread criticism.
