Trump Raises H-1B Visa Fee to $100,000 via New Proclamation

Trump's Proclamation to Significantly Increase H-1B Visa Fees

U.S. President Donald Trump issued a proclamation on the 19th that raised the fee for professional employment visas, known as H-1B, from the current $1,000 to an astonishing $100,000. This is a 100-fold increase and has sparked significant debate across political and business circles. The H-1B program is designed for foreign professionals in specialized fields, allowing them to work and live in the U.S. with their families. It also offers a pathway to permanent residency, making it one of the most desirable visas for individuals aiming to build careers in the U.S.

This visa program has been instrumental in the growth of major technology companies such as Google, Amazon, and Tesla, contributing to the U.S.’s dominance in advanced technology sectors. However, the move by Trump’s administration reflects a broader shift towards stricter immigration policies, particularly among the MAGA (Make America Great Again) faction, which has long criticized the H-1B program.

Understanding the H-1B Visa System

The H-1B visa is specifically aimed at professionals in science, technology, engineering, and mathematics (STEM) fields. Each year, there is a limit of 85,000 visas, with 20,000 reserved for those with U.S. master’s or doctoral degrees. The application process involves a lottery system, and the initial stay is three years, extendable up to six years. Applicants can also apply for permanent residency during this time.

Approximately 2,000 Koreans are granted H-1B visas annually. The proposed fee increase of $100,000 is expected to make it financially challenging for both individuals and companies to afford. There is some confusion regarding whether the fee is a one-time charge or an annual cost. U.S. Secretary of Commerce Howard Lutnick emphasized the need to prioritize American workers, stating, “We must ensure that we hire Americans and that those entering the U.S. are the best.”

In addition to the H-1B changes, Trump signed an executive order related to the ‘Gold Card’ program, offering expedited visa processing for those who pay $1 million or companies that pay $2 million.

Political Divisions and Controversies

Within Washington D.C. political circles, there is growing discussion about Trump aligning with hardline factions through these measures, signaling a major shift in the visa system. Two key groups influencing his second term are the hawkish “America First” faction and the Silicon Valley faction. While the latter had previously supported the Democratic Party, they contributed significantly to Trump’s campaign.

Earlier this year, the argument for attracting foreign talent to maintain technological leadership was stronger than the opposition claiming it takes away American jobs. Elon Musk, CEO of Tesla, was a prominent supporter, citing the role of H-1B visas in building successful companies like SpaceX and Tesla. Similarly, Sriram Krishnan, a venture capitalist and White House AI policy advisor, supported the program.

However, the MAGA faction, led by figures like Stephen Miller, has been vocal in its opposition. Influencers such as Steve Bannon and Laura Loomer have criticized the H-1B program, claiming it undermines American jobs and contradicts the “America First” principle. The White House released a fact sheet highlighting concerns that the H-1B program discourages American workers from pursuing STEM careers and threatens national security. It cited instances where companies used H-1B visas to replace American employees.

Impact on South Korea-U.S. Relations

As the Trump administration solidifies its anti-immigration stance, ongoing South Korea-U.S. visa negotiations—triggered by the detention incident involving Hyundai Motor and LG Energy Solution in Georgia—are expected to face new challenges. Although Trump suggested reforms after the incident, including allowing foreign professionals to train Americans, there are expectations of stringent conditions for South Korea.

The South Korean government had considered increasing the quota for Koreans within the H-1B visa system, alongside proposing a separate visa for Korean professionals. However, Trump’s recent measures have made strategic adjustments necessary. Currently, bills proposed by Republican Congressman Young Kim and Democratic Congressman Tom Suozzi to expand the quota for Korean professionals are pending in Congress. Given the prevailing anti-immigration sentiment, the legislative process may not gain momentum.

Overview of the H-1B Visa

The H-1B visa is a work visa granted to foreigners employed in professional fields such as IT, engineering, finance, and medicine in the U.S. Initially valid for three years, it can be extended for an additional three years. It allows holders to work and reside with their families in the U.S. and is convertible to permanent residency, making it highly sought after by professionals seeking employment in the U.S. Since 2006, the annual quota for H-1B visas has been capped at 85,000, with 65,000 for bachelor’s degree holders and 20,000 for U.S. master’s and doctoral degree holders.