The White House has released a fact sheet backing President Donald Trump’s new plan to charge a whopping $100,000 annual fee for H-1B visa applications. The goal? To stop companies from swapping out American workers for cheaper foreign hires.
Trump’s team points to a big shift in the tech world. Back in fiscal year 2003, just 32% of IT workers held H-1B visas. Now, that number tops 65%, and it’s fueling higher unemployment for U.S. citizens. Recent computer science grads face a 6.1% jobless rate, while computer engineering grads hit 7.5%—double the rates for biology or art history majors.
From 2000 to 2019, foreign STEM workers in the U.S. more than doubled, but overall STEM jobs only grew by 44.5%. The White House argues American companies are using H-1B visas to replace locals. For instance, one firm got approvals for 5,189 H-1B workers in fiscal year 2025, even as it laid off about 16,000 U.S. employees this year. Another snagged 1,698 approvals while cutting 2,400 jobs in Oregon in July. A third slashed 27,000 American positions since 2022 but received 25,075 H-1B nods. And a fourth reportedly axed 1,000 U.S. jobs in February despite 1,137 approvals for 2025.
This fee aims to prioritize American workers, the White House says. Trump has pushed hard to bring jobs back home through new trade deals and investments. Voters gave him a clear mandate to focus on U.S. workers, and his team claims he’s delivering. Since Trump took office again, every single job gain has gone to American-born workers—unlike the prior year under President Biden, when all gains went to foreign-born ones.
The change is stirring up worries, especially for Indian tech professionals who snag 71-72% of H-1B visas. It could hit remittances sent back home and disrupt families. On Saturday, India’s government said it’s reviewing the full impact with industry experts. They note potential humanitarian fallout from family separations.
Ministry of External Affairs spokesperson Randhir Jaiswal stressed that businesses in India and the U.S. both thrive on innovation. “The industry has a stake in creativity and can consult on the best way forward,” he said in a statement. Indian firms have already shared early analysis to clear up misconceptions about the H-1B program.
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