Not even Donald Trump be wrong every time !!
The new fee could significantly push up costs for companies, particularly smaller tech firms and startups.
Widespread panic, confusion and concern had gripped Indians in the US on H-1B visas in the hours after Trump's order to impose the fee, with many cancelling travel plans at the last minute while waiting to board flights to the homeland and several others already in India scrambling to return.
In the first half of 2025, Amazon had more than 10,000 H-1B visas approved, while Microsoft and Meta Platforms had more than 5,000 approvals each.
One company was approved for 1,698 H-1B workers in FY 2025, yet announced it was laying off 2,400 US workers
H-1B visa share rose from 32% in 2003 to over 65% in recent years
several firms hired many H-1B workers, laid off thousands of US staffers
Firm got 25,075 H-1Bs, axed 27,000 US jobs: White House 'factsheet' on visa move
A White House 'factsheet' justified President Donald Trump's measure to impose a USD 100,000 (over Rs 88 lakh) on new H-1B visa applications, asserting that companies were hiring foreign workers while laying off thousands of American employees.
Giving out facts to back the administration's decision to overhaul the H-1B programme, the White House said the share of IT workers with H-1B visas rose from 32 per cent in FY 2003 to over 65 per cent in recent years.
"Unemployment among recent computer science graduates has reached 6.1 per cent and 7.5 per cent for computer engineering graduates - more than double the rates for biology or art history majors. The number of foreign STEM workers in the US has more than doubled between 2000 and 2019, while overall STEM employment only increased 44.5 per cent during that time," the White House said.
Citing details of some companies hiring many H-1B workers and laying off thousands of US employees, the White House said a firm approved 5,189 H-1B workers in FY 2025 and fired roughly 16,000 U.S. employees this year.
"Another company was approved for 1,698 H-1B workers in FY 2025, yet announced it was laying off 2,400 US workers in Oregon in July. A third company has reduced its US 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," the factsheet said.
The White House said Trump's move to impose USD 100,000 annual fee on H-1B visa applications was a step to put American workers first and give back jobs to them to tackle unemployment.
"Voters gave President Trump a resounding mandate to put American workers first, and he has worked every day to deliver on that commitment. President Trump has aggressively and successfully negotiated new trade deals to bring manufacturing jobs back home and attract new investments to the US," the White House said.
"Since President Trump returned to office, all employment gains have gone to American-born workers, unlike last year during the same period under President (Joe) Biden, when all employment gains went to foreign-born workers," it added.
Trump’s threat to crack down on H-1B visas has become a major flashpoint with the tech industry, which contributed millions of dollars to his presidential campaign. The tech industry relies, more than any other sector of the US economy, on H-1B visa holders. Roughly two-thirds of jobs secured through the H-1B program are computer-related, government figures show, but employers also use the visa to bring in engineers, educators and healthcare workers.
In the first half of 2025, Amazon had more than 10,000 H-1B visas approved, while Microsoft and Meta Platforms had more than 5,000 approvals each. The H-1B program offers 65,000 visas annually to employers bringing in temporary foreign workers in specialized fields, with another 20,000 visas for workers with advanced degrees.
Critics of the program, including many US technology workers, argue that it allows firms to suppress wages and sideline Americans who could do the jobs. Supporters, including Tesla CEO Elon Musk, say it brings in highly skilled workers essential to filling talent gaps and keeping firms competitive.
Musk, himself a naturalized US citizen born in South Africa, once held an H-1B visa.
Adding new fees “creates disincentive to attract the world’s smartest talent to the US”, Deedy Das, partner at venture capital firm Menlo Ventures, wrote on X. “If the US ceases to attract the best talent, it drastically reduces its ability to innovate and grow the economy.”
The new fee could significantly push up costs for companies, particularly smaller tech firms and startups.
Aaron Reichlin-Melnick, senior fellow at the American Immigration Council, said on Bluesky: “the president has literally zero legal authority to impose a $100,000 fee on visas. None. Zip. Zilch. The only authority Congress has ever given the executive branch here is to charge fees to recover the cost of processing the application.”
Under the current system, H-1B applicants pay a small fee to enter a lottery and, if selected, subsequent fees that can amount to several thousand dollars, depending on the case. Nearly all the visa fees have to be paid by employers. H-1B visas are approved for a period of three to six years.
The move is the latest effort by the Trump administration to curb, or raise more money from, legal immigration.
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