() President Donald Trump signed a proclamation Friday requiring a $100,000 fee for H-1B visa applications, overhauling the skilled worker program that the administration says has displaced American workers.

The proclamation will restrict entry under the H-1B program unless accompanied by the substantial fee, a White House official told Bloomberg.

“No more will these tech companies train foreign workers. If you’re going to train someone, you’re going to train one of our recent graduates,” Commerce Secretary Howard Lutnick said during the signing.

Trump also ordered the Department of Labor to revise prevailing wage levels for the program to prevent employers from undercutting American worker salaries, Bloomberg reported.

The move particularly affects the technology industry, which relies heavily on H-1B visas to fill specialized positions. In a fact sheet, the White House called the current system a national security threat, arguing that American workers are being replaced with lower-paid foreign labor, Bloomberg reported.

“The dynamic is suppressing wages and disincentivizing Americans from choosing careers in STEM fields,” the White House stated.

It remains unclear whether the $100,000 fee is in addition to existing costs, which currently include a $215 lottery registration fee and a $780 petition fee. The H-1B program allocates 85,000 visas annually through a lottery system.

What are H-1B visas?

The H-1B visa, created in 1990, allows employers to hire foreign workers with specialized skills and bachelor’s degrees for temporary stays.

The visas are valid for three years and can be extended once for a total of six years. Recipients must hold a bachelor’s degree or higher in a field related to their specialty. H-1B holders can also apply for a green card while on the visa but does does provide an automatic pathway.

Immigration services cap the number of new H-1B visas at 85,000 per fiscal year. In 2023, 72% of approved petitions were for people born in India, 12% for those in China, and 71% went to men, according to the U.S. Department of Homeland Security.

Nearly 400,000 applications were approved in fiscal year 2024, most of which were to renew employment, according to Pew. Rejection rates of H-1B applications spiked during Trump’s first term but fell under former President Joe Biden.

Amazon has been the employer with the most H-1B workers approved each year since 2020, according to Pew. Many of the other top employers provide information technology and business services, including Cognizant Technology Solutions, Infosys, Tata Consultancy Services and Google.

What are critics saying about H-1B visas?

Critics across the political spectrum have argued the program undercuts American workers, while supporters say it fills critical workforce shortages in high-skilled positions.

Last year, Elon Musk defended the H-1B program, writing on X: “The reason I’m in America along with so many critical people who built SpaceX, Tesla, and hundreds of other companies that made America strong is because of H1B.”

Supporters argue that the H-1B program helps the U.S. maintain a competitive edge, while critics claim that it undercuts wages for Americans.

Former presidential candidate Nikki Haley posted to X, “If the tech industry needs workers, invest in our education system. Invest in our American workforce. We must invest in Americans first before looking elsewhere.”

In response to critics, Musk proposed reforms to the H-1B program, including raising the minimum salary requirement to discourage low-cost labor abuse.

‘s Tom Dempsey contributed to this report.