Topline
President Donald Trump issued a proclamation that would impose an annual $100,000 fee on H-1B visa applications, used by companies to hire skilled workers from abroad, in a possible roadblock for the U.S. tech industry while disrupting the hiring process for firms like Amazon, Apple and Google.
Key Facts
The H-1B visa program, established through the Immigration Act of 1990 under former President George H.W. Bush, allows U.S.-based companies to temporarily employ foreign workers in occupations requiring a “body of highly specialized knowledge” and a bachelor’s degree or higher.
Industries eligible under the H-1B visa program include fashion modeling, medicine, engineering, finance, computer science and architecture, among others, in addition to participants in Defense Department projects, according to the State Department.
An employer files H-1B petitions with the Labor Department on the worker’s behalf, known as an I-29 and, if approved, the worker then applies for a visa before entering the U.S.
Employers can also apply through a lottery system, as there’s an annual cap of about 85,000 visas for most private companies, and existing program fees include $215 to register for the lottery and $780 for the petition.
The maximum period granted for H-1B workers is six years, though employers may request to extend the visa’s status on three-year increments, if eligible.
Big Number
20%. That’s the estimated percentage of H-1B applications approved each year, according to a study from the National Foundation for American Policy, a public policy nonprofit.
What Companies Hire The Most Workers With H-1b Visas?
Amazon employed the most workers (10,044) using H-1B visas as of June 30, followed by Tata Consultancy Services (5,505), Microsoft (5,189), Meta (5,123), Apple (4,202) and Google (4,181), according to federal data. Other top H-1B employers include Cognizant Technology Solutions (2,493), JPMorgan Chase (2,440), Walmart (2,390) and Deloitte Consulting (2,353).
How Has Trump Changed H-1b Visas?
Trump, in a proclamation issued late Friday, said the U.S. would impose an annual $100,000 fee on H-1B visa applications. The fee would be applied for the vetting process once a worker is selected through the lottery or their petition is approved. It’s not immediately clear how the change would be implemented, however, as new visa fees are typically mandated by Congress or a regulatory process requiring a public notice.
Have Companies Opposed Trump’s Changes To H-1b Visas?
Commerce Secretary Howard Lutnick said Friday that “all the big companies” had been notified of the new fee, suggesting they were all “on board.” Lutnick added, “If you’re going to train somebody, you’re going to train one of the recent graduates from one of the great universities across our land.” Deedy Das, a partner at the venture capital firm Menlo Ventures, said the added fees would be “disincentive to attract the world’s smartest talent” to the U.S., and “if the U.S. ceases to attract the best talent, it drastically reduces its ability to innovate and grow the economy.”