US President Donald Trump signed a proclamation on Friday imposing a steep $100,000 fee on H-1B visa applications, sending shockwaves through the US tech sector and raising questions about American immigration priorities.

US Commerce Secretary Howard Lutnick forcefully defended Trump’s decision to impose a fee, saying that “either the person should be valuable enough or they should head home”.

He added, “The Company needs to decide. Do they want? Is the person valuable enough to have a hundred thousand dollars a year payment to the government, or should they head home, and they should go higher in America?”

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“Either the person is very valuable to the company and America, or they are going to depart and the company is going to hire an American…Stop the nonsense,’’ he said, asserting the policy would ensure only “top, top people’’ gain entry.

While making the announcement, Trump and Lutnick claimed that the $100,000 fee for H-1 B visas would be an annual fee to be paid every year. However, the text of the order does not refer to an annual payment. Instead, it clearly mentioned that the measure is limited to 12 months and will be subject to further review. 

Tech industry backlash

According to a Guardian report, the H-1B program allows for 65,000 visas each year, with an additional 20,000 visas available for advanced degree holders. Amazon alone had more than 10,000 approvals for the first half of 2025, whereas Meta and Microsoft each have received more than 5000. US companies argue that foreign professionals, mainly from India and China, are crucial to keep America competitive.

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India represents most of the H-1B visas 

Official data states that India continues to dominate the H-1B program, with 71% of all approved beneficiaries last year, as per a Reuters report. China is far behind, registering just 11.7% of approvals. The dependence of major US technology firms on foreign talent is also noteworthy. Lutnick highlighted the support of industry giants for the administration’s new visa fee policy. ”All the big companies are on board…we have spoken to them,’’ he stated on Friday, promoting the proposed $100,000 annual fees. 

Tesla chief Elon Musk, who was once an H-1B visa holder himself, has stated that the visas bring in vital skills. Deedy Das, a partner at Menlo Ventures, cautioned on X that adding such fees “creates disincentive to attract the world’s smartest talent to the US”. 

The move has also brought in political debate over the US-India trade. Analysts warn that the decision could be counterproductive. India has so far resisted such pressure, and putting further visa restrictions risks impacting bilateral ties.