Trump Imposed $100,000 fee per year for H-1B visas, in blow IT People- Concerns India

Los Angeles/Sep 20, 2025
NRIpress.club/Ramesh/ A.Gary Singh

President Donald J. Trump has signed a new Proclamation tightening restrictions on the H-1B visa program, introducing a mandatory $100,000 payment for new petitions. The measure aims to curb what the administration calls widespread “abuses” of the visa system that displace U.S. workers and create risks to national security.

Targeting Program Abuse
Officials argue that the H-1B system has been exploited by companies to replace American employees with cheaper foreign workers. They say this trend has contributed to higher unemployment among U.S. computer science and engineering graduates.

Impact on U.S. Workers
The White House points to examples of large corporations laying off thousands of American workers while securing thousands of H-1B visas. Some U.S. employees were reportedly asked to train their foreign replacements before losing their jobs.

Broader Economic Agenda
Trump’s team frames the policy as part of a larger effort to put American workers first. Alongside trade reforms, tariffs, and manufacturing initiatives, the new visa rules are meant to strengthen the U.S. economy and national security.

Higher Costs, Fewer Loopholes
By raising the cost of H-1B participation, the administration hopes to discourage overreliance on foreign labor. Officials say the new structure will prioritize highly skilled, highly paid workers while pushing companies to invest in American talent.

Combating H-1B Program Abuse
The Trump administration argues the H-1B system has been misused by corporations to replace American employees with lower-paid foreign labor. Officials say this practice depresses wages, discourages American students from entering STEM fields, and creates vulnerabilities for U.S. security.

• The share of H-1B visa holders in IT roles has grown from 32% in 2003 to over 65% today.
• Recent unemployment rates for computer science graduates (6.1%) and computer engineering graduates (7.5%) are more than double those of other fields like biology or art history.
• From 2000 to 2019, the number of foreign STEM workers doubled, while overall STEM employment rose only 44.5%.

Citing examples, the White House noted several U.S. companies:

• One secured 5,189 H-1B approvals in FY 2025 while laying off 16,000 American employees.
• Another gained 1,698 H-1B workers but cut 2,400 jobs in Oregon.
• A third reduced its U.S. workforce by 27,000 since 2022 while obtaining 25,075 H-1B visas.
• Yet another eliminated 1,000 American jobs this year, despite receiving more than 1,100 approvals.

Reports also claim some American IT workers were forced to train their replacements from overseas under nondisclosure agreements.

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