US President Donald Trump signed a new executive order on Friday, introducing major changes to the H-1B visa program.
Under the new rule, companies hiring foreign workers through the H-1B visa will now have to pay a $100,000 fee.
The order highlights alleged misuse of the H-1B system, stating that it was lowering wages for American workers, taking away opportunities from young Americans, and creating risks to national security.
When Will the New Rules Apply?
The order states that the new H-1B rules will take effect from September 21, 2025, at 12:00 AM US time (9:30 AM on September 22 in India).
These rules will initially remain in force for one year.
The Department of Homeland Security (DHS) and the State Department will monitor and implement the changes.
Any company that fails to pay the required fee will have its application for hiring a foreign worker rejected.
Who Will Be Exempt from the Fee?
The order gives the Secretary of Homeland Security the authority to grant exemptions.
If hiring foreign workers in a particular company or industry is considered to be in the US national interest and poses no security threat, then those companies will not need to pay the $100,000 fee.
However, the executive order does not define how “national interest” will be determined. It only states that the decision will be at the Secretary’s discretion.
Why Was the Fee Increased?
According to Trump’s order, the H-1B visa system was being misused by companies—especially in the IT sector—to replace American workers with cheaper foreign labor.
Originally, the H-1B program was meant for temporary employment of highly skilled foreign workers only when qualified Americans were not available.
The order argues that the system has drifted from its purpose.
By sharply increasing the fee, the government hopes companies will only hire foreign workers when absolutely necessary for specialized roles, instead of using them as a low-cost alternative.
Critics, however, warn that this could hurt the US’s global leadership in science and technology.
Rising Participation of Foreign Workers
Data presented in the order shows that between 2000 and 2019, the number of foreign workers in STEM (Science, Technology, Engineering, and Mathematics) fields doubled from 1.2 million to 2.5 million, while total STEM employment grew by only 44.5%.
The share of foreign workers in computer and mathematics-related jobs rose from 17.7% in 2000 to 26.1% in 2019.
Experts believe this rise is linked to the overuse of the H-1B visa program.
IT Sector Most Affected
IT companies have relied heavily on the H-1B system.
In 2003, IT employees accounted for 32% of H-1B holders, but in the past five years, this share has averaged over 65%.
This shows that the IT industry will be the most affected by Trump’s new rule.
