 "(File) US President Donald Trump. Reuters")
The White House on Saturday released a factsheet defending President Donald Trump’s decision to impose a USD 100,000 (over ₹88 lakh) fee on new H-1B applications , arguing that American workers were losing jobs to “lower-paid foreign labour.”
Rising share of H-1B workers in IT
According to the White House, the share of IT workers on H-1B visas jumped from 32 per cent in 2003 to more than 65 per cent in recent years. It also cited rising joblessness among US graduates, “Unemployment among recent computer science graduates has reached 6.1 per cent and 7.5 per cent for computer engineering graduates - more than double the rates for biology or art history majors. The number of foreign STEM workers in the US has more than doubled between 2000 and 2019, while overall STEM employment only increased 44.5 per cent during that time.”
Companies cited for layoffs
The factsheet pointed to examples of companies hiring H-1B workers while cutting American jobs. One firm approved 5,189 H-1B workers in FY 2025 while laying off 16,000 US employees. Another got approval for 1,698 H-1B workers but announced 2,400 layoffs in Oregon. A third company reduced its US workforce by 27,000 since 2022 while receiving 25,075 H-1B approvals, and another cut 1,000 jobs in February despite securing 1,137 approvals.
Trump’s push to protect US workers
The White House said the steep fee was meant to protect American jobs, “Voters gave President Trump a resounding mandate to put American workers first, and he has worked every day to deliver on that commitment. President Trump has aggressively and successfully negotiated new trade deals to bring manufacturing jobs back home and attract new investments to the US.”
It added, “Since President Trump returned to office, all employment gains have gone to American-born workers, unlike last year during the same period under President (Joe) Biden, when all employment gains went to foreign-born workers.”
USCIS data shows Indians made up 72 per cent of the nearly 4 lakh H-1B visas issued between October 2022 and September 2023.
The announcement triggered panic among Indians on H-1B visas, with some cancelling travel plans at the last minute and others stuck in India rushing to return. Immigration lawyers warned H-1B holders abroad to get back to the US before the order took effect on Sunday.
Fee applies only to new petitions
The administration later clarified that the USD 100,000 fee applies only to new applications. “The new H-1B visa requirement applies only to new and prospective petitions that have not yet been filed,” the White House said. Petitions submitted before September 21 are not affected, and existing visa holders outside the US do not need to pay the fee to re-enter.