In a bold move aimed at reshaping the H-1B visa program, President Donald Trump announced a new $100,000 fee for companies seeking to hire foreign tech workers. The White House highlighted that the visa system has been exploited by some firms that laid off American employees while replacing them with H-1B visa holders.
A White House fact sheet revealed alarming figures: one company received 5,189 H-1B approvals while laying off 16,000 US workers, and another secured 1,698 approvals despite cutting 2,400 jobs in Oregon.
“One company was approved for 5,189 H-1B workers in FY 2025 while laying off roughly 16,000 US employees this year. Another company was approved for 1,698 H-1B workers in FY 2025, yet announced layoffs of 2,400 US workers in Oregon in July,” the statement said.
The fact sheet further detailed a third company that has slashed 27,000 American jobs since 2022, despite receiving 25,075 H-1B approvals, and another that laid off 1,000 Americans, with reports suggesting some were required to train their foreign replacements under nondisclosure agreements.
“A third company has reduced its U.S. workforce by 27,000 since 2022 while receiving 25,075 H-1B approvals. Yet another company reportedly cut 1,000 American jobs in February despite receiving 1,137 H-1B approvals for FY 2025. American IT workers have even been reportedly forced to train their foreign replacements under nondisclosure agreements,” the White House noted.
The administration warned that continued misuse of the H-1B program could discourage future American workers from pursuing STEM careers, posing potential risks to national security.
“President Trump is imposing higher costs on companies seeking to use the H-1B program in order to address the abuse of the program, stop the undercutting of wages, and protect our national security,” the statement added.
Importantly, the Trump administration clarified that the $100,000 fee applies only to new H-1B petitions, providing relief to thousands of current visa holders, including many professionals from India.
The US Citizenship and Immigration Services (USCIS) confirmed that petitions filed before September 21, the effective date of the proclamation, will not be affected. Existing visa holders outside the US are also exempt from paying the new fee for re-entry.
A White House official emphasized to PTI:
“It only applies to new visas, not renewals or current visa holders. It will first apply in the upcoming lottery cycle. It does not apply to 2025 lottery winners.”
The administration’s move reflects a growing effort to balance American workforce protection with the global demand for tech talent, while signaling a tough stance on companies that rely heavily on foreign workers at the expense of domestic employees.`
