The cost of skilled migrants: Trump imposes RM421,000 visa fee

WorldPolitics
20 Sep 2025 • 1:52 PM MYT
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KUALA LUMPUR – US President Donald Trump has signed an executive order that introduces a $100,000 (RM421,000) fee for companies seeking to sponsor H-1B visas, which allow skilled foreign workers to fill roles in the US. 

The move is part of a broader crackdown on immigration and aims to ensure that only workers with rare and specialised skill sets are granted access.

Speaking from the White House, Trump said: “The main thing is, we’re going to have great people coming in, and they’re going to be paying.” The proclamation cites “abuse” of the programme and warns that applicants will be restricted unless the fee is paid.

Critics argue that the H-1B programme undermines American jobs, while supporters—including billionaire Elon Musk—contend it helps the US attract top talent from around the world. 

The H-1B visa programme, established in 1990, has traditionally been capped at 85,000 applications per year. Until now, the programme carried administrative fees of about $1,500. 

However, data from US Citizenship and Immigration Services (USCIS) shows that applications for the visa fell to around 359,000 for the upcoming fiscal year, a four-year low.

Amazon was the largest recipient of H-1B visas in the previous fiscal year, followed by tech giants such as Tata Consultancy, Microsoft, Meta, Apple, and Google.

Legal experts and immigration advocates are concerned that the new fees will have a significant impact on small businesses and start-ups. 

“Almost everyone’s going to be priced out. This $100,000 entry fee will have a devastating impact,” said Tahmina Watson, a founding attorney at Watson Immigration Law, noting that many smaller companies struggle to find workers with the required skills in the domestic labour pool.

The debate surrounding H-1B visas has long divided Trump’s administration, with former strategist Steve Bannon among the programme’s vocal critics. Trump has previously expressed an understanding of both sides of the argument, stating in January that he recognises the need to balance talent attraction with protecting American workers.

While Trump has spoken about making it easier for foreign talent to work in the US—once suggesting the possibility of offering green cards to college graduates—his administration has taken a tougher stance in recent years. In 2017, Trump signed an executive order aimed at increasing scrutiny of H-1B applications, leading to a rise in rejections, which peaked at 24% in fiscal year 2018.

In addition to the $100,000 fee, Trump has introduced a “gold card” visa scheme, which offers fast-tracked residency for those willing to pay $1 million. Critics have expressed concern that these new measures may dissuade foreign talent from seeking opportunities in the US, potentially undermining the country's innovation capacity.

The controversy over H-1B visas comes at a time when other restrictions on immigration are also being considered, including proposals to monitor social media activity of foreign students and a ban on travellers from several countries.

India remains the largest beneficiary of H-1B visas, accounting for 71% of approved applicants last year, followed by China at 11.7%. The programme is a vital pathway for skilled workers, with many tech firms heavily reliant on foreign talent to fill critical positions. 

However, with the introduction of these new fees, the future of the programme, particularly for smaller businesses, is now uncertain. — September 20, 2025