U.S. President Donald Trump signed a proclamation today imposing a $100,000 annual fee on H-1B visa applications, marking a major overhaul of the program designed for highly skilled foreign workers. The measure, enacted in the Oval Office with Commerce Secretary Howard Lutnick in attendance, requires U.S. companies to pay the fee per sponsored worker each year, a dramatic escalation from prior costs ranging from $1,700 to $4,500. H-1B visas, which allow up to three years of initial employment with a possible three-year renewal, are capped at 85,000 annually and are heavily utilized by tech giants for roles in software engineering and data science.

The administration justified the hike as a tool to combat program abuse and prioritize "great workers" over low-wage imports. Trump emphasized during the signing, "We need workers. We need workers. We need great workers, and this pretty much ensures that that's what's going to happen." White House staff secretary Will Scharf labeled the H-1B system as one of the "most abused" in U.S. immigration, arguing it was meant for fields lacking American talent but has been exploited by outsourcing firms for mass recruitment. The policy aims to deter replacement of domestic employees and ensure only top-tier professionals enter, aligning with broader efforts to safeguard American jobs amid economic pressures.

Major U.S. tech firms like Amazon, Microsoft, Google, and Meta, which sponsor thousands of H-1B workers, face significant new financial burdens. Last year, Indian nationals received 71% of approvals, making the change particularly impactful for that demographic and their employers. Trump anticipated pushback but assured, "Everyone's going to be happy," predicting companies would value retaining "very productive people" and pay accordingly. Industry observers note the fee could accelerate automation investments or domestic hiring, though it risks talent shortages in innovation hubs like Silicon Valley.

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This reform builds on Trump's long-standing immigration stance, echoing his first-term restrictions on H-1B usage during the COVID-19 era. While supporters praise it as a merit-based safeguard, critics warn of potential brain drain and higher costs passed to consumers. As implementation details emerge via the Department of Homeland Security, the policy underscores a shift toward elite, revenue-generating immigration streams.

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