WASHINGTON () 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 H-1B program allows employers to hire non-U.S. citizens for highly skilled foreign workers, commonly used in tech, finance and engineering.

Controversy flared after Trump told The New York Post: “I have many H-1B visas on my properties. I’ve been a believer in H-1B. I have used it many times. It’s a great program.”

However, critics argue H-1B visas take jobs from American workers.

What are H-1B visas?

The H-1B visa program allows employers to hire non-U.S. citizens for highly skilled jobs temporarily.

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.

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.

H-1B holders can also apply for a green card while on the visa but does does provide an automatic pathway.

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?

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.