The US administration has renewed a presidential decree, maintaining the $100,000 fee for foreign workers, introduced in September 2025 to restrict access to the US job market. This move has caused concern in the tech sector and among candidates for expatriation. The fee has effectively blocked the hiring of new foreign talent, with only over 700 payments recorded by companies in the past year.
The US government had argued that a similar tax of $103,265 would raise $8.8 billion without deterring recruiters. However, the low number of payments has invalidated this claim. The administration has also issued a decree ordering the Departments of State, Labor, and Homeland Security to intensify scrutiny of H-1B visa applications. The agencies will now collaborate to examine if companies have laid off or plan to lay off US workers in similar positions.
The H-1B visa is a key route for highly qualified international graduates to access the US job market, particularly in the tech sector. Foreign students account for 75-80% of master's and doctoral degrees in US universities, especially in artificial intelligence. The administration's move is part of a broader plan to restrict skilled immigration, including raising minimum salary requirements and eliminating work permits for spouses.
The renewal of the $100,000 fee has weakened the administration's position in court, as lawyers will have to justify how a measure designed to curb immigration can be presented as a simple autofinancing device for federal services. The presidential decree has also raised concerns about its application to renewals of already-approved visas and the imposition of layoff-related criteria on companies.
Experts in immigration law have questioned the decree's legality, arguing that the authority cited only concerns border control and does not authorize the administration to modify extension conditions for professionals already in the US. Imposing layoff-related criteria on all companies also exceeds a legal limit set by Congress, which reserves such constraints for employers heavily reliant on H-1B workers.
The administration's move signals a return to the policies of Donald Trump's first term. By considering recent layoffs as evidence of local labor availability, the government is likely to increase requests for additional evidence and systematically raise refusal rates. This development has sparked concerns among businesses and immigration advocates.
The US tech sector, which relies heavily on foreign talent, is likely to be significantly impacted by the renewed fee and stricter visa rules. The changes are expected to lead to increased costs and complexity for companies seeking to hire foreign workers, potentially affecting the sector's competitiveness and innovation.
Key points
- The US has reinstated a $100,000 fee for foreign workers, despite court concerns.
- The fee is part of a broader effort to restrict skilled immigration.
- The move is expected to impact the tech sector, which relies heavily on foreign talent.
