Thousands of American tech workers have been laid off in recent years,yet their employers continue importing foreign labor at a discount. Now, a new $100,000 visa fee aims to change that.
In a proclamation signed by President Donald Trump , companies seeking to hire foreign workers through the H-1B visa program will face a steep new cost starting at 12:01 a.m. EDT on September 21, 2025. The measure is framed as a defense of American jobs, wages, and national security.
The H-1B visa was originally designed to help U.S. companies fill specialized roles in fields like IT, engineering, and healthcare. But according to the administration, it has become a loophole for outsourcing firms to replace domestic workers with lower-paid foreign labor. One cited study found that H-1B hires are paid up to 36 percent less than their American counterparts.
The proclamation points to troubling trends: unemployment among recent U.S. graduates in computer science and engineering remains disproportionately high, even as the number of foreign STEM workers has more than doubled since 2000. Major tech firms have laid off thousands of American employees while simultaneously securing thousands of H-1B approvals. In some cases, domestic workers were asked to train their replacements before being let go.
“The high numbers of relatively low-wage workers in the H-1B program undercut the integrity of the program and are detrimental to American workers’ wages and labor opportunities,” the proclamation states.
In addition to the new fee, the administration has directed the Department of Labor to revise prevailing wage levels and instructed the Department of Homeland Security to prioritize high-skilled, high-paid applicants. The restrictions will last for 12 months, with the possibility of extension. Exceptions may be granted if the Secretary of Homeland Security determines that a specific hire serves the national interest and poses no threat to security.
This action reopens a long-standing debate over the H-1B program’s role in shaping the American labor market. Critics argue it has become a tool for cost-cutting at the expense of domestic talent. Supporters maintain it fills critical skill gaps and drives innovation. As the new policy takes hold, its impact on hiring practices, wage structures, and global talent mobility will be closely watched.
Read The Full proclamation Below:
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