Recent news of a $100,000 fee has put the H-1B visa in the spotlight. But what is it, and why does this new policy matter so much? Here’s a breakdown of the program at the center of a major new controversy.
The H-1B is a non-immigrant visa that allows U.S. employers to temporarily employ foreign workers in specialty occupations. These roles generally require a bachelor’s degree or higher in a specific field. The program is heavily used by the technology and IT sectors but also by healthcare, finance, and academia to fill roles where there is a shortage of qualified domestic candidates. There is an annual cap of 65,000 visas, with an additional 20,000 reserved for those with a U.S. master’s degree or higher.
Historically, the cost to an employer for an H-1B visa has been several thousand dollars in legal and filing fees. This cost was considered a standard part of recruiting for specialized talent. The visas are granted for up to three years and can be extended to a maximum of six years.
President Trump’s new proclamation seeks to add a $100,000 fee to be paid annually for each worker. This is the core of the controversy. A fee of this magnitude changes the visa from an accessible tool into an extreme luxury. For a single employee over six years, this could mean an additional $600,000 in costs for the employer.
This matters because it could fundamentally alter the U.S. innovation landscape. Supporters of the fee, like Commerce Secretary Howard Lutnick, say it will force companies to “Train Americans.” Opponents argue it will create a “brain drain,” making it impossible for startups and even large companies to attract the global talent needed to stay competitive, ultimately harming the U.S. economy. The policy also faces serious legal challenges, as experts question if the president has the authority to impose such a fee.