Tech giants warn of major disruption as US President couples new charges with $1m “gold card” residency scheme
US President Donald Trump has unveiled one of the most far-reaching measures of his second term’s immigration agenda, ordering a steep annual fee of $100,000 on H-1B skilled worker visas – a move that could dramatically affect America’s technology industry and trigger legal battles.
The directive, signed in the Oval Office on Friday, coincided with the formal launch of a “gold card” residency programme offering permanent status for a $1 million fee. Trump, who previewed the latter initiative months ago, framed both policies as a way of ensuring that the United States only admits the “best people” – and that they pay handsomely for the privilege.
“The main thing is, we’re going to have great people coming in, and they’re going to be paying,” Trump told reporters as he signed the orders, flanked by Commerce Secretary Howard Lutnick. “All the big companies are on board.”
The H-1B visa scheme, introduced in 1990, allows American firms to sponsor foreign workers with specialist expertise – often in science, engineering, and computing – for an initial three-year period, extendable to six years. Each year, the US issues 85,000 visas by lottery, with Indian nationals accounting for around three-quarters of successful applicants.
The programme has become a lifeline for Silicon Valley, with major firms such as Google, Microsoft and Amazon relying heavily on Indian software engineers and IT specialists. Many rotate staff between India and the US to plug gaps in America’s talent pipeline.
Industry leaders have repeatedly warned that restrictions on H-1B visas would damage competitiveness. Tesla chief executive Elon Musk – once seen as an ally of Trump – has publicly argued that the US does not produce enough skilled graduates to fill the country’s demand for high-end technical roles.
“This risks choking the very innovation America prides itself on,” one senior technology executive told the *Financial Times*. “It sends a message that the US is closing its doors to global talent just as other countries are opening theirs.”
Trump has been targeting the H-1B system since his first term, when his administration sought to narrow the categories of jobs eligible for sponsorship. Those earlier restrictions were struck down by courts, and the new fee structure is already expected to face lawsuits from technology lobbies, universities, and potentially state governments.
Under the order, the fee takes effect from Sunday. The Homeland Security secretary has been granted discretion to exempt individuals, entire companies, or entire industries, though criteria for such waivers remain vague. The measure is formally time-limited to a year but can be extended at the president’s discretion.
Critics said the fee was effectively designed to deter applicants. “A $100,000 annual surcharge is not a regulatory tweak – it is an exclusionary wall,” said one Washington-based immigration lawyer. “It is almost certain to be challenged as discriminatory.”
The new restrictions mark a sharp departure from recent trends. In 2022, under Democratic president Joe Biden, H-1B approvals peaked as applications surged in the aftermath of the pandemic. By contrast, the highest rejection rates were recorded in 2018, midway through Trump’s first term.
In 2024 alone, roughly 400,000 H-1B visas were approved – two-thirds of them renewals – underscoring the scale of reliance on the system. Many applicants begin their American careers on student visas before transitioning to employer sponsorship.
Trump coupled the H-1B clampdown with a fresh pitch to wealthy individuals and corporations: a new fast-track residency option dubbed the “gold card”. For $1 million, individuals will be eligible for permanent residence, while corporations can sponsor foreign employees at a cost of $2 million.
“I think it’s going to be tremendously successful,” Trump said, hailing the programme as a magnet for investment.
The scheme resembles investor visa programmes in countries such as Canada, Portugal and the UK, though those often set thresholds closer to $2 million to $3 million and involve extensive vetting. Critics warned that Trump’s plan could effectively “sell green cards to the highest bidder” while simultaneously blocking skilled workers who cannot afford the premium.
The impact is likely to be felt far beyond America’s borders. With India supplying the majority of H-1B recipients, the new costs could disrupt the country’s lucrative IT outsourcing industry, which depends on sending skilled staff to US offices.
Shares in major Indian tech outsourcing firms dipped in early trading on Saturday amid concerns over project delivery timelines and cost overruns. Analysts warned that European hubs such as Ireland, Germany and the Netherlands could benefit if companies shift operations away from the US.
For Trump, however, the changes are being cast as a fulfilment of campaign promises to put “America First” in immigration policy. “We’re going to have the best, but we’re not going to have the freeloaders,” he declared.
Whether the courts allow the fee to stand – and whether companies can adapt quickly – will determine how far-reaching the consequences prove for the global technology sector.
