US lawmakers and community leaders voiced concern over US President Donald Trump’s plan to impose a $100,000 fee on H-1B visa applications, calling the move “reckless” and “unfortunate” that will have a “huge negative” impact on the IT industry.

Trump’s $100,000 H-1B visa fee is a “reckless attempt to cut America off from high-skilled workers who have long strengthened our workforce, fuelled innovation, and helped build industries that employ millions of Americans,” Congressman Raja Krishnamoorthi said.

Krishnamoorthi said many H-1B holders ultimately become citizens and launch businesses that create well-paying jobs in the US. “While other nations race to attract global talent, the US should strengthen its workforce and modernise our immigration system — not erect barriers that weaken our economy and security,”
he said.

Former adviser to President Joe Biden and Asian-American community leader on immigration policy, Ajay Bhutoria, warned of a potential crisis for the US technology sector’s competitive edge with Trump’s new plan
to impose the “staggering” H-1B fee.

“The H-1B programme, a lifeline for innovation that has attracted top talent from around the world, faces unprecedented barriers with this massive jump from the current $2,000-$5,000 total fee, which will crush small businesses and startups reliant on diverse talent,” Bhutoria said.

Bhutoria added that the move will drive away skilled professionals who power Silicon Valley and contribute billions to the US economy.

He said the move may backfire by pushing talent to competitors like Canada or Europe. He called for a balanced reform like exempting startups or prioritising merit-based selection instead of “this extreme overhaul”.

Khanderao Kand of the Foundation for India and Indian Diaspora Studies said the $100,000 fee for H1-Bs is a very unfortunate policy with huge negative impact on businesses particularly software and tech industry as well as US-educated STEM talent who are already struggling because of negative impact of AI
and tariffs.

The moves were the latest efforts by the Trump administration in a wide-ranging crackdown on all forms of immigration.

The H-1B fee is likely to face legal challenges. But if it survives, companies that hire skilled international workers would have to pay $100,000 each year for any employee working on the visa, for up to six years. The fee applies only to new applicants, a White House official said.

“Either the person is very valuable to the company and America, or they’re going to depart, and the company is going to hire an American,” Howard Lutnick, the US commerce secretary, said at the signing in the Oval Office
on Friday. “And that’s the point of immigration: Hire Americans and make sure the people coming in are the top, top people.”

He added: “Stop the nonsense of letting people just come into this country on these visas that were given away for free.”

Trump framed the “gold card” programme as a way for the government to raise billions of dollars, and Lutnick said the programme would likely replace all other green card visa programmes.

“You can prove exceptional value to the United States of America by contributing a million dollars to the United States of America,” he said on a call with reporters after the signing of the proclamation.

Many industries rely on the H-1B visas to fill jobs, including technology and finance. Hospitals and universities also make ample use of them. The new fee could substantially affect their ability to fill jobs, changing the nature of the country’s workforce.

PTI and New York Times News Service