The Trump administration’s decision to impose a $1

The Trump administration’s decision to impose a $100,000 annual fee on H-1B visas has triggered backlash from companies workers, and foreign governments. The program was created to bring in highly skilled workers to strengthen the U.S. economy, but over the years it has often been used to replace Americans with cheaper foreign labor. That shift has held down wages displaced qualified employeesand raised economic concerns. The cost increase is staggering. A visa that once cost around $10,000 now costs ten times more. Amazon with more than 11,000 H-1B employees, would be looking at nearly $1 billion in added expenses if it applied to all holders. After strong pushback, the administration limited the rule to new applicants but the largest visa users will still face billions in new costs every year.

This move comes on top of long-term growth in reliance on foreign STEM labor. Between 2000 and 2019, the number of foreign STEM workers in the U.S. doubled from 1.2 million to nearly 2.5 million. In computer and math jobs, their share of the workforce rose from 17.7 percent to 26.1 percent. IT outsourcing firms have driven much of this shift, with their share of H-1B workers rising from about one-third in 2003 to more than two-thirds in recent years. A study found H-1B entry-level hires cost 36 percent less than hiring Americans, encouraging companies to shut down divisions, lay off U.S. staff, and bring in lower-cost foreign workers. The fallout has hit young Americans especially hard. Recent computer science graduates face unemployment rates above 6 percent, while computer engineering graduates are above 7 percent higher than many non-STEM majors. Overall unemployment in computer occupations rose from under 2 percent in 2019 to just over 3 percent in 2025. At the same time, companies continue cutting American jobs while securing thousands of new visas. One firm laid off 15,000 employees in the same year it was approved for 5,000 H-1Bs. Another cut 2,400 jobs in Oregon while bringing in 1,700 H-1B workers. Many laid-off Americans were even forced to train their replacements under nondisclosure agreements before leaving.

The new fee has created chaos inside companies. Tech giants like Microsoft, Google, and Infosys rushed to bring overseas employees back before the rule took effect, creating confusion and project delays. Startups are in an even worse position, lacking the financial flexibility to absorb such high costs despite their reliance on specialized foreign talent.Diplomatic tensions are also rising. India, the largest source of H-1B workers, has voiced strong objections, pointing to family disruptions and stalled projects. The policy is adding friction to U.S.-India trade ties at a time when both countries have been working to deepen economic partnerships

One overlooked but critical part of the proclamation is discretion. The Secretary of Homeland Security has the authority to waive the $100,000 fee for specific individuals companies, or industries if their work is deemed in the national interest. This effectively turns what looks like a firm rule into one that can be selectively applied, raising questions about who will receive exemptions and under what circumstances. The administration frames the policy as protection for American workers, especially younger job seekers, with unemployment for those aged 20–24 at 8.1 percent but the risks are clear. Higher costs could drive companies to offshore jobs, delay projects, or cut back on investment. Rather than boosting opportunities for Americans, the policy may slow innovation, weaken growth, and increase costs across the economy

Source: StockMarket.News