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US President Donald Trump has signed an executive order that places a $100,000 yearly fee on companies applying for H-1B visas, which allow skilled foreign workers into the US.
US Commerce Secretary Howard Lutnick said: “The company needs to decide… is the person valuable enough to have a $100,000-a-year payment to the government, or they should head home, and they should go hire an American,” he said, adding: “All of the big companies are on board.”
Trump said the programme has been “abused” and the new fee will discourage overuse. Critics have long claimed H-1Bs take jobs from Americans, while supporters such as Elon Musk argue they are vital for attracting the best talent.
In a separate move, Trump introduced a “gold card” visa that offers fast-track entry in exchange for payments starting at £1m. Both orders are set to take effect on 21 September and will apply only to new requests, though firms will have to pay the fee for each worker for up to six years, according to Commerce Secretary Howard Lutnick.
Until now, H-1B visas cost around $1,500 in administrative fees. Applications have already been falling, with 359,000 submitted this year, a four-year low. Amazon, Tata, Microsoft, Meta, Apple and Google are among the biggest users of the system. On Friday, Amazon advised employees already in the US to stay put and warned others abroad to try to return immediately or wait for further guidance.
India is the largest source of H-1B workers, making up 71% of approvals last year, with China second at about 12%. India’s trade body Nasscom said the sudden change created “considerable uncertainty” for workers, students, and businesses.
Immigration lawyers and business leaders warned the new fees will crush small and medium-sized companies, which often sponsor visas only because they cannot find workers locally. Tahmina Watson, an attorney, said the $100,000 demand could be “a nail in the coffin” for many of her clients. Jorge Lopez, another immigration specialist, said the cost could undermine America’s global competitiveness.
The H-1B debate has long divided Trump’s circle. Early in his presidency, he raised rejection rates to record levels. Yet while campaigning, he had promised to make it easier for US firms to attract skilled graduates. The new order seems to signal a dramatic shift away from that stance.
Source: BBC.
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