WASHINGTON 鈥 President Donald聽罢谤耻尘辫听is聽preparing to sign a proclamation that will require a $100,000 application 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, according to a White House official.
The signing could come as early as Friday, the official said. The official was granted anonymity to speak in advance of the proclamation signing. The proposed proclamation was first reported by Bloomberg News.
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.
First lady Melania Trump, the former Melania Knauss, was granted an H1-B work visa in October 1996 to work as a model. She was born in Slovenia.
The H1-B program was created in 1990 for people with a bachelor鈥檚 degree or higher in fields where jobs are deemed hard to fill, especially science, technology, engineering and math. Critics say they allow companies to pay lower wages with fewer labour protections.
Historically, these visas 鈥 85,000 per year 鈥 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鈥檛 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.
As a result, many U.S. companies find it cheaper simply to contract out help desks, programming and other basic tasks to consulting companies such as Wipro, Infosys, HCL Technologies and Tata in India and IBM and Cognizant in the U.S. These consulting companies hire foreign workers, often from India, and contract them out to U.S. employers looking to save money.
Doug Rand, who served as the director of U.S. Citizenship and Immigration Services during the Biden administration, said this amounts to a 鈥渟plit personality disorder鈥 for the program, with only about half of the visas each year going to traditional companies that offer long-term employment and can put immigrants on a track to citizenship. The other half go to staffing or consulting firms 鈥 and while many are established and well-known companies, others are just one-person operations that wouldn鈥檛 exist without the H1-B program.
鈥淭hey鈥檙e basically entering the lottery so they can hire people that they then rent out to other larger companies doing actual work,鈥 Rand said. 鈥淎nd so there鈥檚 a lot of misbehaviour and chicanery in this part of the system.鈥
In 2024, lottery bids for the visas plunged nearly 40%, which authorities said was due to success against people who were 鈥済aming the system鈥 by submitting multiple, sometimes dubious, applications to unfairly increase chances of being selected.
Major technology companies that use H-1B visas sought changes after massive increases in bids left their employees and prospective hires with slimmer chances of winning the random lottery. Facing what it acknowledged was likely fraud and abuse, USCIS this year said each employee had only one shot at the lottery, whether the person had one job offer or 50.
Critics welcomed the change but said more needs to be done. The AFL-CIO wrote last year that while changes to the lottery 鈥渋ncluded some steps in the right direction,鈥 it fell short of needed reforms. The labour group wants visas awarded to companies that pay the highest wages instead of by random lottery, a change that Trump sought during his first term in the White House.
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Ortutay reported from Oakland, Calif. Associated Press writer Adriana Gomez Licon in Ft. Lauderdale, Fla., contributed to this report
