Trump Signs New Fee for H-1B Visa Applications, Impacting Tech Hiring
In a significant move, President Donald Trump recently signed an executive order that introduces a hefty $100,000 annual fee for employers wishing to file H-1B visa applications. This change could have a major impact on hiring practices within the technology sector, especially in the Bay Area.
Commerce Secretary Howard Lutnick emphasized the new policy, stating, “If you’re going to train somebody, train Americans. We need to stop bringing people in to take our jobs.” This reflects a clear shift in focus towards prioritizing American workers over foreign talent.
The H-1B visa program, which began in 1990 during George H.W. Bush’s presidency, allows foreign workers in specialized fields to work in the U.S. Currently, the application fee for an H-1B petition is relatively low, with a few hundred dollars required from employers. In addition, large companies that rely heavily on these visas pay an extra $4,000, while the visa itself costs $205. The new executive order would drastically increase the financial barrier for companies hiring foreign workers.
Lutnick added, “The goal is to ensure that we hire Americans first, and if we do bring in foreign talent, they need to be the best of the best.” He criticized the current system, claiming it has allowed too many people to enter the U.S. on these visas without proper scrutiny.
Under the new order, any H-1B applications submitted without the $100,000 fee will face restrictions. This could directly affect many current H-1B visa holders who are currently outside the U.S.
The new rules will be in place for one year, with a start date of Sunday. Trump is invoking authority under the Immigration and Nationality Act, which he previously used to restrict entry from certain Muslim-majority countries.
Critics of the move argue that it may not align with legal standards and could deter skilled talent from coming to the U.S. Stuart Anderson, executive director of the National Foundation for American Policy, pointed out that this policy could make it too costly for startups to hire foreign workers.
Bay Area tech giants like Google and Meta utilize a significant number of H-1B visa holders, primarily for roles such as software engineering. Recent data showed that Google had the highest number of H-1B applications for 2024, totaling 344.
From 2021 to 2024, the Bay Area ranked second in approved H-1B applications among U.S. metro areas, just behind New York. With salaries often exceeding $150,000, these positions are highly coveted.
The U.S. government limits the number of H-1B visas to 65,000 each year, along with an additional 20,000 for candidates with advanced degrees from U.S. institutions. This quota represents only about 0.05% of the overall U.S. labor force.
While the H-1B program is designed to attract skilled foreign workers, some critics argue it allows companies to hire them at lower wages than American workers. Applicants must also go through a lottery system for a chance to apply, which has faced scrutiny this year, with reports suggesting that some candidates are receiving notices of increased scrutiny.
This year, Trump proposed to eliminate the lottery system and instead grant visas based on salary ranking—a suggestion that drew concerns about its legality in relation to the existing laws governing the program. Last year, applicants faced odds of roughly 1 in 4 for being selected through the lottery process.
As changes unfold, it remains to be seen how these new rules will impact the landscape of tech hiring and the future of the H-1B program in the United States.
