Administration's H‑1B overhaul raises risk of offshoring as firms weigh $100K fee
The White House signed a proclamation adding a $100,000 surcharge to new H‑1B visa approvals (effective 12:01 a.m. ET Sept. 21 for one year), a leap from the current $215 fee, with officials later clarifying it applies to new filings only (Commerce Secretary Howard Lutnick earlier called it “annual”) and noting the FY2025 cap was already met so pending cap‑season petitions are excluded; the move came alongside a separate $1 million “Gold Card” fast‑track citizenship option. Major tech employers that hire thousands of H‑1B workers (Amazon, Google, Microsoft, IBM, Apple, Meta) warned the cost could make hires uneconomic, prompting firms to consider offshoring, spur legal challenges and workforce‑training efforts, and contribute to slower projected immigration and labor‑force growth.
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🔍 Key Facts
- President Trump signed a presidential proclamation/executive order (late Friday) imposing a $100,000 fee on new H‑1B visa applications and concurrently creating a $1 million "Trump Gold Card" fast‑track path to citizenship.
- The $100,000 charge takes effect at 12:01 a.m. ET on Sept. 21 for H‑1B filings submitted on or after that time, is scheduled to last one year (with possible extension), and the White House says it applies only to new visas (not renewals or current holders); officials have given conflicting descriptions about whether the charge is one‑time or an annual fee.
- The hike is massive compared with the current filing fee (about $215); USCIS had already reached the FY2025 H‑1B cap so cap‑season petitions are excluded. There are roughly 700,000 current H‑1B holders and a statutory annual cap of 85,000.
- Administration officials (including Commerce Secretary Howard Lutnick and White House spokespeople) say the policy is intended to make reliance on H‑1B workers uneconomic, curb system "spamming," raise wages and push firms to train Americans; the Labor Department was also directed to revise H‑1B pay rules and the administration announced targeted apprenticeship/workforce funding.
- Major U.S. tech employers (Amazon, Microsoft, Google, Apple, IBM) are cited as most affected — Amazon received roughly 10–11,000 H‑1B approvals in recent years — and roughly 65% of approved H‑1Bs in 2023 were in computer‑related fields (median pay about $123,600); some firms told H‑1B employees abroad to return amid re‑entry confusion.
- Business groups and industry leaders warned the policy could exacerbate domestic talent shortages and prompt offshoring of roles, while economists and empirical research (e.g., IZA 2024) suggest H‑1B hires can also expand firm employment and crowd‑in native college‑educated workers, indicating mixed short‑ and long‑term labor‑market effects.
- Legal, diplomatic and practical backlash is mounting: a former USCIS official predicted court challenges, immigration attorneys warned of "total chaos" from the abrupt change, and India’s foreign ministry expressed concern about humanitarian and family disruptions given that over 70% of H‑1B holders are from India.
- Program context: H‑1Bs are typically issued for up to three years (with possible extensions), commonly lead to green‑card sponsorship, include a statutory cap structure (65,000 + 20,000 for U.S. advanced‑degree holders), and show significant employer concentration (e.g., Amazon accounted for ~3% of approvals).
📍 Contextual Background
- On 2025-09-26 Transportation Secretary Sean Duffy announced new, stricter rules for non-citizens to obtain commercial driver's licenses.
- New York City has sanctuary city status.
- The Rapid Response Legal Collaborative had funding of $500,000 (as reported in the article).
- The New York Immigrant Family Unit Program had funding of $16,000,000 (as reported in the article).
- The Immigrant Opportunity Initiative had funding of $20,000,000 (as reported in the article).
- The Department of Homeland Security released a statement saying the officer was being relieved of current duties while a full investigation was conducted and denouncing the officer's conduct as unacceptable.
📊 Analysis & Commentary (2)
Indians and Koreans not welcome
"The piece argues that the new $100,000 H‑1B fee—alongside raids affecting Korean workers—signals Indians and Koreans are unwelcome in the U.S., a stance that will damage U.S. innovation, supply chains, and alliances."
Failing Schools Are Why We Need H-1B Visas
"The column argues that dismal NAEP scores show U.S. schools aren’t producing enough skilled workers, so limiting H‑1B visas—such as via new fees—would be self‑defeating and the country should instead expand high‑skill immigration while fixing K–12 education."
📰 Sources (11)
Trump’s proposed changes to the H-1B visa program, explained
New information:
- Breakdown of H‑1B usage: about 65% of approved H‑1B workers in fiscal 2023 were in computer‑related fields.
- Median pay for those computer‑related H‑1B workers in 2023 reported as $123,600.
- Program mechanics and limits clarified: annual statutory cap of 65,000 plus an additional 20,000 for U.S. advanced‑degree holders; nonprofits and universities are exempt from the cap.
- Employer concentration example: Amazon received ~11,000 H‑1B approvals in 2023 (≈3% of the pool).
- Typical visa duration and pathway: H‑1Bs are generally issued for up to three years with a three‑year extension available and are commonly converted into green‑card petitions.
Trump's H-1B change, immigration crackdown could send jobs overseas
New information:
- Quotes from White House adviser Jacob Helberg acknowledging tradeoffs in workforce policy.
- Labor Department announced $25 million for apprenticeship/workforce training in Alabama and Colorado, cited as part of administration response.
- Industry reaction (Neil Bradley, U.S. Chamber) warning of domestic talent shortages and firms' inclination to offshore if policies persist.
- Explicit linkage made between the $100,000 one‑time H‑1B cost and companies' consideration of moving roles overseas.
Will the Trump administration's $100,000 H-1B fee help Americans get jobs?
New information:
- Provides economic analysis and expert commentary predicting mixed short‑ and long‑term labor‑market effects from the $100,000 fee
- Cites empirical research (IZA 2024 study) showing H‑1B hires can expand firm employment, revenues and crowd‑in native college‑degree workers
- Offers concrete figures and citations: roughly 700,000 current H‑1B holders (Capital Economics) and the statutory annual H‑1B cap of 85,000
- Quotes multiple named economists (Kirk Doran, Jennifer Hunt, Michael Clemens, Gaurav Khanna) explaining potential sectoral winners and losers
Here's what immigration attorneys say about Trump's $100,000 H-1B fee
New information:
- White House spokeswoman Taylor Rogers reiterated the fee is a one-time charge for initial H‑1B applications and framed it as discouraging companies from 'spamming the system' and 'driving down American wages.'
- Some major tech firms, including Google and Microsoft, told H‑1B employees traveling abroad to return immediately amid confusion over re‑entry, despite the White House clarification.
- Effective time specified: the $100,000 fee applies to new H‑1B filings submitted on or after 12:01 a.m. ET on September 21.
- USCIS has already reached the FY2025 H‑1B cap (through Sept. 30), meaning those pending cap‑season applications are excluded from the new fee; filings in the next fiscal year would be subject to it.
- Alphabet Workers Union president Parul Koul said there remains 'a great degree of uncertainty' on the ground.
- Immigration attorney Emily Neumann noted employers typically pay H‑1B filing fees and said few will be willing to cover the additional $100,000, likely deterring new sponsorships.
Trump's immigration crackdown could stunt his blockbuster economic aims
New information:
- Commerce Secretary Howard Lutnick said the policy is intended to make reliance on H‑1B workers uneconomic and to push companies to train Americans.
- Trump also directed the Labor Department to revise pay requirements for H‑1B workers.
- CBO now projects net immigration of only about 400,000 in 2025, down from a 2 million estimate in January, implying slower labor‑force growth.
- Axios cites recent labor data (27,000 average monthly job gains May–Aug; prime‑age employment‑to‑population at 80.7% in August) to frame tight labor supply.
White House clarifies $100K H-1B visa fee won’t apply to existing holders as Trump stirs anxiety
New information:
- White House said the $100,000 H‑1B fee applies only to new visas, not renewals or current visa holders, and does not affect re‑entry travel for current holders.
- Fee took effect at 12:01 a.m. ET Sunday and is scheduled to last one year, with potential extension.
- A White House official said the fee is a 'one‑time' charge, contradicting Commerce Secretary Howard Lutnick’s earlier 'annual' characterization; renewals policy is 'under discussion.'
- India’s Ministry of External Affairs expressed concern about humanitarian and family disruptions and said it is studying the measure; over 70% of H‑1B holders are from India.
- Immigration attorneys warned of 'total chaos' due to the abrupt change and short notice.
- Magnitude of increase reiterated: from $215 to $100,000 for new H‑1B visas.
Trump signs proclamation that adds $100K annual fee to H-1B visas for high-skilled workers
New information:
- Identifies the current H‑1B visa fee as $215, underscoring the magnitude of the jump to $100,000 annually.
- Labels the action as a 'presidential proclamation' and details Commerce Secretary Howard Lutnick’s rationale that the fee will make many H‑1B hires uneconomic.
- Names a specific critic, former USCIS official Doug Rand, calling the move 'ludicrously lawless' and predicting court challenges.
- Notes Amazon was the top H‑1B recipient this year with more than 10,000 approvals; Microsoft declined to comment.
- Reiterates the 85,000 annual H‑1B cap in context of Lutnick’s claim that far fewer visas will be used under the new fee.
Trump signs proclamation adding $100K annual fee for H-1B visa applications
New information:
- ABC/AP specifies the H‑1B charge is an annual $100,000 fee, not a one‑time application cost.
- Commerce Secretary Howard Lutnick said 'all big companies' are on board and predicted far fewer H‑1Bs than the 85,000 annual cap because 'it’s just not economic anymore.'
- Lutnick framed the policy as incentivizing training Americans and said firms could still pay the fee for 'very sophisticated' engineers.
- Major tech firms (Amazon, Apple, Google, Meta) did not immediately comment; Microsoft declined to comment.
- Context notes Amazon received over 10,000 H‑1Bs this year, the most of any employer, with California hosting the highest number of H‑1B workers.
Trump unveils "Gold Card" fast-track visas for $1 million
New information:
- Trump’s on‑camera reaction: he believes tech companies will be 'very happy' with the $100,000 H‑1B fee change and that companies will pay it to keep productive workers.
- Contextualizes supporter vs. critic arguments on H‑1B impacts alongside the new fee.
Trump signs $1M gold card visas, adds $100,000 fee for skilled worker visa applicants
New information:
- President Trump signed the executive order imposing a $100,000 fee on H‑1B visa applicants.
- The signing occurred Friday night at the White House.
- A separate executive order concurrently created a $1 million 'Trump Gold Card' path to citizenship.
Trump administration to add $100,000 fee for H-1B visas
New information:
- White House official confirmed plan to CBS News
- Proclamation could be signed as soon as Friday
- New fee: $100,000 per H‑1B application; entry restricted without payment
- Major U.S. tech firms cited as affected (Amazon, IBM, Microsoft, Google)
- Bloomberg first reported the plan; CBS confirmed with White House