President Donald Trump on Friday signed a proclamation that will require a new annual $100,000 fee for H-1B visa applications, among other changes to the program for highly skilled foreign workers that has come under scrutiny by the administration.
Trump on Friday insisted that the tech industry would not oppose the move. “I think they're going to be very happy,” he said.
H-1B visas are meant to bring the best and brightest foreigners for high-skilled jobs that tech companies find difficult to fill with qualified U.S. citizens and permanent residents. The program instead has turned into a pipeline for overseas workers who are often willing to work for as little as $60,000 annually. That is far less than $100,000-plus salaries typically paid to U.S. technology workers.
Historically, these visas — 85,000 per year — have been doled out through a lottery system. This year, Amazon was by far the top recipient of H-1B visas with more than 10,000 awarded, followed by Tata Consultancy, Microsoft, Apple and Google. Geographically, California has the highest number of H-1B workers, according to UCIS.
Critics say H-1B spots often go to entry-level jobs, rather than senior positions with unique skill requirements. And while the program isn’t supposed to undercut U.S. wages or displace U.S. workers, critics say companies can pay less by classifying jobs at the lowest skill levels, even if the specific workers hired have more experience.