Trump unveils $100,000 H-1B visa fee, launches premium 'Gold Card' option

US President Donald Trump signed an executive order Friday, 19 September, restricting the entry of H-1B workers unless their employers pay a $100,000 annual fee — a move that could dramatically alter the pipeline of Indian professionals to the United States.

He also introduced a ‘Gold Card’ visa requiring million-dollar contributions. Trump justified both measures saying it would protect US jobs while raising billions for tax cuts.

Trump, flanked by commerce secretary Howard Lutnick, declared a new era for US immigration policy, signing a proclamation that raises the cost of employing H-1B visa holders and introduces a new fast-track residency option for the global elite.

“The H-1B non-immigrant visa programme was created to bring temporary workers into the United States to perform additive, high-skilled functions, but it has been deliberately exploited to replace, rather than supplement, American workers with lower-paid, lower-skilled labour,” the proclamation stated.

Direct impact

For India, the impact is direct. Roughly three-quarters of H-1B visas go to Indian nationals, and IT outsourcing firms are among the largest users. The $100,000 annual fee could sharply raise operating costs, forcing companies to limit applications to only their most indispensable talent.

Under the order, the entry of H-1B workers is restricted unless a $100,000 payment accompanies their petitions. The requirement applies to new applicants and renewals, which means that companies could face up to $600,000 over six years for a single employee.

For the past four years, open-border Democrats endlessly flooded the country with illegal aliens at the expense of hardworking Americans.

The Trump administration is completely reversing course on that disastrous agenda. These programs guarantee that recipients who come to work…

— Howard Lutnick (@howardlutnick) September 20, 2025

Trump Gold Card will be incredible success in India: Lutnick

Trump said the rule forces companies to make serious choices. “Either the person is very valuable to the company and America, or they’re going to depart and the company’s going to hire an American,” he told reporters. “We need workers. We need great workers. And this pretty much ensures that’s what’s going to happen.”

He framed the overhaul as a long-overdue correction. “For years, American workers have been replaced by foreigners brought in on cheap visas. That ends today,” Trump said.

The proclamation cited sharp increases in foreign STEM workers and heavy reliance on H-1Bs by outsourcing firms. “Companies close their IT divisions, fire their American staff, and outsource IT jobs to lower-paid foreign workers,” the order noted.

Lutnick added: “No more will these big tech companies or other big companies train foreign workers. They have to pay the government $100,000. Then they have to pay the employee. So it’s just not economic. Train Americans. Stop bringing in people to take our jobs.”

Raising concerns over national security, the proclamation says, “The abuse of the H-1B programme is also a national security threat. Domestic law enforcement agencies have identified and investigated H-1B-reliant outsourcing companies for engaging in visa fraud, conspiracy to launder money... and other illicit activities to encourage foreign workers to come to the United States.”

Gold Card programme

Trump also announced the launch of ‘Gold Card’ visa, a premium path for foreigners of “extraordinary ability” who pay $1 million personally or $2 million if backed by a corporation.

Lutnick argued the measure would reshape incentives. “We’re going to stop letting in workers from the bottom quartile. We’re going to bring in extraordinary people at the very top — people who create jobs for Americans, not take them away.”

He connected the strategy to his tariff policies. “We’re taking in trillions of dollars,” Trump said. “Our country is becoming very rich again only because of tariffs. And now immigration is going to do the same thing.”

The order on H-1B visas instructs the Department of Homeland Security to deny petitions from applicants outside the United States unless the payment is provided. Employers must retain documentation of the payment, and non-payment will lead to denial of entry, the document said.

The labour department is tasked with revising prevailing wage levels for H-1B jobs, while Homeland Security must prioritise “high-skilled, high-paid” workers when approving petitions.

The administration cited data showing reliance on H-1B visas has surged in the technology sector. The share of IT workers on such visas grew from 32 per cent in 2003 to more than 65 per cent in recent years.

The administration argued that the H-1B system discourages US students from pursuing careers in science and engineering. “The H-1B programme is creating disincentives for future American workers to choose STEM careers, which threatens our national security,” the proclamation added.

Trump’s move is expected to fuel debate over the balance between safeguarding American jobs and maintaining access to global talent as the 2026 election season approaches.

‘Will cripple US economy’

The move drew sharp criticism from lawmakers and community leaders who warned the unprecedented increase would cripple US innovation and weaken the economy.

Rep. Raja Krishnamoorthi, an Illinois Democrat, called the proposed fee “a reckless attempt to cut America off from high-skilled workers who have long strengthened our workforce, fuelled innovation, and helped build industries that employ millions of Americans.”

“Many H-1B holders ultimately become citizens and launch businesses that create good-paying jobs here at home,” Krishnamoorthi said.

Khanderao Kand of the Foundation for India and Indian Diaspora Studies (FIIDS) said startups and smaller tech companies would be hit hardest. “We need to educate about talent shortages and the negative impact, especially on startups and smaller tech companies, making them difficult to innovate and compete,” he added.

Ajay Bhutoria, a former advisor to president Joe Biden and an Asian American community leader on immigration issues, said the drastic fee hike threatens the technology sector’s global edge. “The H-1B programme, a lifeline for innovation that has attracted top talent from around the world, faces unprecedented barriers with this massive jump,” Bhutoria said.

The H-1B visa programme, capped at 85,000 slots annually, has been a pipeline for foreign engineers, scientists and programmers. Critics say it undercuts US wages, while supporters argue it fills gaps in a tight labour market.

Courtesy: 5wh.com