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The Trump administration has unveiled a sweeping new mandate requiring companies to pay $100,000 for every employee they hire under the H1-B visa program, a move already rattling the tech industry and immigration advocates.
The executive order, announced this week, marks one of the sharpest restrictions yet on high-skilled immigration. U.S. Commerce Secretary Howard Lutnick defended the measure, saying, “If you’re going to train somebody, you’re going to train one of the recent graduates from one of the great universities across our land. Train Americans. Stop bringing in people to take our jobs.”
The order has triggered swift responses from major corporations. According to reports, Microsoft and JP Morgan warned employees on H1-B visas to avoid leaving the country, while urging those currently abroad to return to the U.S. before Saturday, September 20. The companies reportedly feared sudden enforcement measures that could disrupt their workforces.
The mandate is a dramatic pivot from Trump’s earlier rhetoric. During his first term, he suggested making the H1-B visa a faster path to citizenship and praised the program for attracting highly skilled workers. Even Elon Musk, who has often defended Trump, has spoken out in support of H1-B visas, arguing that they help the U.S. stay globally competitive.
Legal experts are also raising alarms. Immigration attorney Aaron Reichlin-Melnick wrote on X that the executive branch has only ever been authorized to charge fees to cover application processing costs, not to impose sweeping financial barriers. He predicted the order would face the same court challenges that struck down other Trump-era policies, including his travel bans and attempts to end DACA.
The stakes are high for the tech industry. With strong technology sectors already thriving in China, Europe, and India, business leaders warn the U.S. risks losing top talent if it continues to push away skilled foreign workers. For now, the announcement has deepened uncertainty in Silicon Valley, which had already been wary of Trump despite his surprising inroads with some industry leaders.
The move also underscores Trump’s campaign promise to crack down on immigration. This message has long energized his base, even as critics argue such policies undermine U.S. innovation and economic growth.