Trump Hits H-1B Visas with $100,000 Fee, Targeting the Program That Launched Elon Musk and Instagram

President Donald Trump has made it significantly more expensive for companies to hire foreign workers through the H-1B program. On Friday, the White House announced that Trump signed a proclamation requiring employers to pay a $100,000 fee for new H-1B visa applications — a massive jump from the current $215 lottery registration fee.

H-1B visas allow U.S. companies to hire foreign workers in technical fields such as IT, engineering, mathematics, and medicine. The program is capped at 65,000 new visas annually, plus an additional 20,000 for foreign graduates with advanced degrees from U.S. universities. Visas are awarded through a lottery system and typically last three years, with the option to extend or apply for green cards.

Administration’s Rationale

The Trump administration says the move is designed to crack down on program abuse and prevent the displacement of American workers. According to the White House, the share of IT workers on H-1B visas has grown from 32% in 2003 to over 65% today, while unemployment among recent computer science graduates has reached 6.1%.

Impact on Silicon Valley

The restrictions affect a program that helped create some of Silicon Valley’s biggest success stories.

• Elon Musk, a close ally of Trump for much of this year, initially worked in the U.S. on an H-1B visa after arriving as a student. Musk has publicly defended the program as critical for companies like SpaceX and Tesla.
• Mike Krieger, Instagram co-founder and now Chief Product Officer at Anthropic, also used an H-1B visa early in his career. The visa process delayed Instagram’s founding and nearly jeopardized its launch.

Earlier this year, the National Venture Capital Association (NVCA) emphasized that H-1B visas are critical for immigrant-founded startups, providing essential work experience and expanding the pool of potential founders.

Tech Companies Respond

Tech leaders are warning of talent migration to more welcoming countries. Amazon, Google, and Microsoft reportedly advised employees with H-1B visas to avoid foreign travel and remain in the U.S.

The White House also cited specific companies that approved thousands of H-1B workers while laying off American employees, highlighting potential program abuse. For example, one unnamed company reportedly received approval for 5,189 H-1B workers while cutting roughly 16,000 U.S. jobs.

Exemptions and Wage Adjustments

The proclamation allows for case-by-case exemptions if deemed in the national interest. It also directs the Labor Secretary to revise wage requirements to prevent H-1B workers from undercutting American salaries.

This update includes reports on how major tech companies are responding to the new rules.