President Trump’s latest executive order slapping a $100,000 annual fee on new H-1B visa applications couldn’t come at a better time for American workers who’ve been sidelined by Big Tech’s addiction to cheap foreign labor. This move directly tackles the rampant abuse of a program that’s supposed to bring in top talent but instead floods the market with lower-wage imports, driving down salaries and shutting out our own graduates.
Look at the numbers: The share of IT workers holding H-1B visas has ballooned from 32% in 2003 to over 65% today, while unemployment among computer science grads sits at 6.1% and computer engineering at 7.5%.
As the White House put it, “The H-1B program is creating disincentives for future American workers to choose STEM careers.”
That statement nails the core issue—why pour time and money into a degree when companies like Amazon and Microsoft prefer outsourcing firms to hire foreigners at a discount? It’s no wonder national security takes a hit when we’re discouraging our brightest minds from entering fields vital to innovation and defense.
Commerce Secretary Howard Lutnick laid it out plainly: “The whole idea is no more will these big tech companies or other big companies train foreign workers. They have to pay the government $100,000, then they have to pay the employee, so it’s just not [economical].”
Elaborating on that, this fee flips the script on the economics that have favored foreign hires. For years, outfits like Cognizant and Infosys—top H-1B users—have exploited the system to undercut American wages, hiring tens of thousands of visa holders while laying off domestic staff.
A report from the Economic Policy Institute shows that in 2022 alone, the top 30 H-1B employers snapped up 34,000 new visa workers even as they axed at least 85,000 jobs, proving the program’s become a tool for mass outsourcing rather than genuine skill gaps. Lutnick’s point drives home that with this hefty fee, companies will finally think twice before bypassing qualified Americans, forcing them to invest in training and hiring from our own talent pool.
White House spokesperson Taylor Rogers echoed this America-first approach: “President Trump promised to put American workers first, and this commonsense action does just that by discouraging companies from spamming the system and driving down wages. It also gives certainty to American businesses who actually want to bring high-skilled workers to our great country but have been trampled on by abuses of the system.”
Building on Rogers’ words, the certainty she mentions is key—real innovators needing specialized expertise can still pay up if it’s worth it, but the days of flooding the lottery with applications from low-cost contractors are over. U.S. Citizenship and Immigration Services has long warned that such abuses “may negatively affect US workers, decreasing wages and opportunities as they import more foreign workers,” and this policy directly combats that.
Of course, not everyone’s thrilled. India’s Ministry of External Affairs voiced concerns, saying, “Skilled talent mobility and exchanges have contributed enormously to technology development, innovation, economic growth, competitiveness and wealth creation in the United States and India. Policy makers will therefore assess recent steps taking into account mutual benefits, which include strong people-to-people ties between the two countries.”
Fair enough—India’s tech sector relies heavily on H-1B exports, with companies like TCS and Wipro among the biggest beneficiaries. But let’s be real: Mutual benefits shouldn’t mean American jobs get sacrificed on the altar of globalism. If India’s talent is truly irreplaceable, firms can foot the bill or use the new “gold card” option at $1 million for individuals or $2 million for businesses, paving a path to citizenship without the cheap-labor loopholes.
Venture capitalist Deedy Das warned on X that “If the U.S. ceases to attract the best talent, it drastically reduces its ability to innovate and grow the economy,” adding the fee “creates disincentive to attract the world’s smartest talent to the U.S.”
Das overlooks how the current system stifles homegrown innovation by making STEM paths less appealing to Americans. Plus, for those elite minds, the Trump Platinum Card at $5 million offers tax perks and extended stays—plenty of incentive if you’re bringing real value.
Reactions from tech giants tell another story: Amazon and Microsoft are scrambling, advising H-1B holders to stay put or rush back before potential travel bans kick in, showing just how dependent they’ve become on this flawed setup.
Lutnick claims “All of the big companies are on board,” which might surprise some given the internal memos flying around. But if they’re truly committed to American prosperity, they’ll adapt by prioritizing our workforce. This isn’t about shutting doors—it’s about ensuring they’re opened first to those who’ve invested in this country. In the end, Trump’s fee restores balance, protecting jobs and wages while still welcoming the best under fair terms. American workers deserve no less.
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We have thousands of experienced IT professionals in the US, and thousands more graduating every year. Why do we need to import foreign workers? (Answer: cheap labor). No job should ever be given to a foreign worker that an American qualifies for.
I wish this system had been in place 10 years ago. The company that I and dozens of other IT workers just got forcibly retired from replaced us with mostly younger, cheaper and less American workers, after deceitfully telling us that they weren’t going to do that. I think the $100k fee should be extended to current H1B visa holders, not just new ones. Add in L1 visa holders, too.
Suck on that libtard.
democrat go home
You’re not welcome here.
This is not true. Lutnik and crew LIED to you and everyone!
Karoline Leavitt went to the mic to tell everyone quite the opposite story. “Let me clarify…”
Go watch it. Everyone is up in arms over these lies the Trump administration keeps putting out.
Well it is about time to eliminate the H1-B loophole. Back in the 90s, IT contracts were averaging around $80-$100 per hour depending on the skill level and ability. Then the flood of IT contractors from India started and by the end the contract rate was down around $35-$45 per hour and all the work was going to the contract companies from India. If you could get a contract it was usually a sub-contract through an American company that was fronting for an Indian company. Hopefully this will return things to a more stable level and the American market will open back up to AMERICANS. Seems pretty stupid to claim benefits for America when all the work, pay, and experience is going to people from India.
What about companies that use cheap labor in other countries like customer service centers without bring them here on visas? Isn’t that the same impact on American workers? Can the Trump administration somehow charge companies for every employee they use in another country to do business here in the US?
I work in IT projects for data centers, many of the employees arrived just 3 years ago, speak little english and 90% are foreigners, I guess these foreiggners are taking jobs from Americans? young people coming out of college could do these computer jobs.