President Donald Trump has announced a sweeping overhaul of the H-1B visa program, introducing a new $100,000 annual fee for companies seeking to employ foreign workers under the scheme. The policy, set to take effect on September 21, 2025, marks one of the most significant changes to the program in decades and is expected to have far-reaching effects on the U.S. technology sector.

According to the White House, the measure is aimed at curbing what it describes as “abuses” of the H-1B system, which critics say has been used by some firms to replace American workers with lower-cost foreign labor. The administration argues that the hefty fee will discourage misuse, protect U.S. jobs, and ensure that only firms with critical needs for high-skilled workers continue to participate.

The proclamation also revises prevailing wage levels for visa holders, prioritizing applications for higher-skilled, higher-paid roles. While exemptions may apply in cases deemed to serve the “national interest,” the administration has signaled that enforcement will be strict.

The announcement has sparked alarm across the technology industry, where companies rely heavily on H-1B workers, particularly in fields such as software engineering, artificial intelligence, and data science. Analysts warn that the steep fee could deter smaller firms and startups from hiring global talent, forcing some to relocate jobs abroad or limit expansion in the U.S.

Legal experts have also raised questions about the president’s authority to impose such high fees, noting that visa charges are typically meant to cover administrative costs rather than act as economic barriers. Industry groups are widely expected to challenge the policy in court.

As businesses brace for the new rules, observers say the move could reshape the U.S. labor market, with lasting implications for innovation, competitiveness, and the country’s ability to attract top global talent.