In a development that has drawn attention across the tech industry, President Donald Trump, along with Commerce Secretary Howard Lutnick, announced a new $100,000 fee on H-1B visa applications, effective as of 12:01 a.m. yesterday. As reported by PIX11 News, the visa, designed to attract high-skilled foreign talent, the H-1B visa program may experience a significant decline in usage due to the substantial fee increase. Announced as a measure to protect American jobs, the policy is already affecting the New York City metropolitan area, which has previously reported the highest number of H-1B approvals.
Amid confusion and concern among immigrant workers, the White House clarified that the new fee will not apply to current H-1B visa holders or individuals seeking to renew their visas. “Those who already hold H-1B visas and are currently outside of the country right now will NOT be charged $100,000 to re-enter,” White House press secretary Karoline Leavitt confirmed in a statement shared on X, according to ABC7NY. This clarification came as a relief for many, given that more than 70% of H-1B visa holders hail from India, a nation whose government has expressed deep concerns over the new fee.
Major sectors in New York City, including finance and education, may be significantly impacted. Companies such as Bloomberg, Citibank, Barclays Services Corp, the New York City Department of Education, and American Express, identified by PIX11 News as among the top employers of H-1B visa workers in the city, could face increased challenges. The new fee introduces a significant rise in costs for employers seeking to hire new H-1B workers, potentially affecting future recruitment strategies.
The Trump administration also announced additional visa changes, including a $1 million "Gold Card" visa for certain high-net-worth individuals and a $5 million "Trump Platinum Card," which offers limited residency without U.S. tax obligations on foreign income. Commerce Secretary Howard Lutnick stated that "all big companies" support the changes, although leading tech firms have not publicly commented, as per ABC7NY. While these new visa categories target a different group, the sharp increase in H-1B fees could result in fewer applications, potentially bringing the total below the annual cap of 85,000 and impacting the tech labor market in the U.S.
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