Washington: The White House has alleged that American technology companies have laid off more than 40,000 domestic employees and replaced them with H-1B visa holders, intensifying the debate over foreign skilled labor in the United States. In response, the Trump administration has announced a sweeping overhaul of the H-1B visa system, introducing a one-time \$100,000 fee for sponsoring new applicants.
The executive proclamation, signed on September 19, set September 21 as the effective date for the new fee. The White House clarified that the fee will apply only to new H-1B petitions and not to renewals or existing visa holders. The move is presented as part of President Donald Trump’s “America First” agenda aimed at discouraging over-reliance on foreign workers and protecting American jobs.
The announcement sparked immediate confusion among visa holders and companies. Many H-1B workers, particularly from India and China, rushed back to the United States to avoid potential entry barriers, while tech giants including Microsoft, Amazon, and Google issued advisories warning their foreign employees against international travel. Although clarifications have since assured that current visa holders will not be required to pay the new fee simply to re-enter the country, the uncertainty disrupted travel plans and created widespread anxiety.
Industry leaders and foreign governments have expressed concern about the policy’s impact. The U.S. Chamber of Commerce warned that the fee would harm innovation and competitiveness, while India raised humanitarian concerns about disruptions faced by its nationals. Critics argue that the sudden policy shift risks driving global talent away to other countries with more stable immigration systems.
The White House maintains that the fee hike is necessary to prevent abuse of the visa program, citing the mass layoffs of American workers replaced by cheaper foreign labor. However, questions remain about the accuracy of the 40,000 figure, the scope of exemptions for industries deemed vital to national interest, and whether legal challenges could overturn or alter the measure.
The changes mark one of the most significant shifts in U.S. skilled immigration policy in recent decades. While the administration insists the reforms will protect American workers, businesses and foreign professionals now face an era of uncertainty that could reshape the global technology workforce.