President Donald Trump signed a sweeping executive order on Friday, 19 September 2025, imposing a US$100,000 annual fee on all H-1B visa applications, marking the most dramatic overhaul of the skilled worker program since its inception in 1990.
The proclamation, announced alongside the Department of Labor's launch of 'Project Firewall,' represents a seismic shift in United States (US) immigration policy that will disproportionately impact Indian tech workers, who comprise approximately 71% of all approved H-1B applications according to recent U.S. Citizenship and Immigration Services data.
Major Policy Changes Announced
The new fee structure applies to both new H-1B applications and supplemental petitions, transforming what was once a manageable visa cost into a substantial ongoing expense of over Rs88 lakh annually. Employers must maintain documented proof of payment, with the Department of State verifying payments during processing. Applications without required payment face automatic rejection, with only rare national interest exceptions providing potential reprieve.
Concurrent with the fee increase, the Department of Labor launched 'Project Firewall,' an unprecedented enforcement initiative that will see the Secretary of Labor—currently Lori Chavez-DeRemer—personally certify H-1B investigations for the first time in the program's history.
"The days of employers abusing H-1B visas are over. Introducing PROJECT FIREWALL—our plan to ensure high-skilled jobs go to AMERICANS FIRST," the Department of Labor declared on social media platform X.
Indian Professionals Bear Brunt of Changes
The policy strikes hardest at Indian workers, who dominate the H-1B landscape with China trailing as a distant second at 11.7% of approvals. The majority work in STEM fields, with roughly 65% employed in computer-related positions earning a median salary of approximately US$118,000 annually.
The changes particularly impact two key groups: seasoned professionals at major American information technology (IT) companies and Indian students graduating from US universities with advanced degrees in Master's or PhD programmes.
For mid-level professionals, entry-level employees and recent graduates, the US$100,000 fee represents a substantial portion of their income, creating significant affordability challenges while establishing careers in America.
Corporate Impact on Tech Giants
Major corporations face dramatically higher costs under the new structure. Amazon and its cloud-computing division Amazon Web Services received approval for more than 12,000 H-1B visas in the first half of 2025, while Microsoft and Meta Platforms each secured over 5,000 approvals.
For Silicon Valley giants and IT services firms, the changes translate to elevated expenses, constrained hiring pipelines and potential project delays requiring specialised engineers and programmers.
Administration's Strong Stance on Immigration Reform
White House staff secretary Will Scharf characterised the H-1B program as "one of the most abused visa systems in the country's current immigration framework," arguing the increased fee will ensure sponsored individuals are genuinely highly skilled and not replaceable by American workers.
"We need workers. We need great workers, and this pretty much ensures that that's what's going to happen," president Trump said during the announcement.
"The Trump Administration is standing by our commitment to end practices that leave Americans in the dust. As we reestablish economic dominance, we must protect our most valuable resource: the American worker," the Department of Labor stated in its press release.
The administration argues some US workers face replacement by cheaper foreign labor, particularly in technology sectors, and the high fee will limit unnecessary applications while forcing companies to hire foreign workers only when genuinely needed.
'Project Firewall' Intensifies Enforcement
The newly launched enforcement initiative operates under existing federal authority to investigate companies suspected of H-1B fraud or abuse. Investigations can be triggered by 'reasonable cause' that an employer is not complying with visa regulations.
The initiative emphasises multi-agency coordination, with the Department of Labor planning to share information and collaborate with other government entities to enforce compliance and prevent discrimination against American workers.
Employers found violating rules face severe consequences including repayment of back wages, civil monetary penalties, and potential debarment from the H-1B program for specified periods.
Gold Card Program for Ultra-wealthy
Additionally, Trump signed an executive order establishing a 'Gold Card' visa program with fees set at US$1mn (million) for individuals and $2 mn for businesses. This targets what officials describe as "extraordinary people at the very top" who can create businesses and jobs for Americans.
"Today we are proud to announce THE TRUMP GOLD CARD. The Card will be available for US$1 mn for individuals, and US$2 mn for Corporations," Trump announced on Truth Social. "We think it's going to be very successful... It's going to raise billions of dollars, which will reduce taxes, pay off debt, and do other good things."
Commerce secretary Howard Lutnick criticised the existing employment-based green card program as "illogical," noting it historically admitted individuals earning an average of US$66,000 annually who were five times more likely to require government assistance programs.
"Historically, the employment-based green card program led in 281,000 people a year. And those people, on average, earned US$66,000 a year, and they were five times more likely to go on government assistance programs. So we were taking in the bottom quartile, below the average American. It was illogical. The only country in the world that was taking in the bottom quartile. We are going to stop doing that," Mr Lutnick explained.
President Trump anticipates the Gold Card programme will generate over US$100 billion, with funds designated for tax reduction, pro-growth projects, and debt payment.
Additional Immigration Reforms
The administration is also implementing a more demanding citizenship test, requiring applicants to study a pool of 128 questions covering US history and politics and correctly answer 12 out of 20 questions orally. This test had been implemented during Mr Trump's previous presidency but was scrapped by the Joe Biden administration.
These comprehensive changes represent what officials describe as fixing a 'broken' immigration system that has allowed 'millions of illegal aliens pouring into our Country' for too long.
Career Pathways Disrupted
The financial barriers particularly impact Indian students and recent graduates who face difficulties affording the annual cost while establishing careers. The fee may limit job prospects and increase financial pressure on new professionals seeking US employment opportunities.
Many H-1B holders traditionally use these visas as pathways to permanent residency through green card applications. The substantial annual cost may force career decisions based on financial capacity rather than professional qualifications, potentially blocking progression toward permanent residency.
The traditional H-1B to green card pathway now faces significant obstacles, as Indian professionals must navigate both the immediate financial burden and the extended wait times typically associated with green card applications from India.
Industry Warns of Talent Exodus
Critics suggest the comprehensive changes may negatively impact the US economy, especially industries depending heavily on global talent. The annual issuance of 85,000 H-1B visas through lottery systems may see reduced employer participation due to financial barriers.
The changes may result in fewer opportunities for international students to remain after completing studies. For those already in the pipeline, each visa renewal during the extended Green Card wait periods—which are particularly lengthy for Indian applicants—will require paying the substantial fee, compounding financial challenges over time.
Workers unable to meet fee requirements may face forced departure from the US, while those remaining must carefully plan finances around annual payment obligations. The financial barrier could also reduce employer participation in the visa program, as companies weigh the cost-benefit of hiring foreign talent.
With American universities still not producing sufficient skilled workers to meet industry demand, the crackdown risks deepening existing talent gaps, potentially affecting innovation and competitiveness as the US competes globally in artificial intelligence, semiconductors and advanced technology sectors.
Long-term Implications
The policy represents a fundamental transformation in American immigration strategy for skilled workers. For thousands of Indian professionals currently working in the US and those aspiring to do so, these changes mark the end of an era of relatively accessible pathways to American employment and potential permanent residency.
The H-1B programme, originally designed to address skill shortages by temporarily hiring foreign nationals in specialty occupations requiring highly specialised knowledge, now faces its most significant restructuring in over three decades.
The coordinated timing of the executive order and Project Firewall launch demonstrates the administration's commitment to what MrTrump calls his 'America First' agenda in the job market, fundamentally reshaping how skilled foreign workers can access the American economy.
