Trump's H-1B Crackdown Backfires: Employers Feel the Pain

The US H-1B visa program has become increasingly restrictive under the Trump regime. The $1 lakh fee for new H-1B workers, announced in September 2025, was intended to curb abuse and protect American workers but has had a limited impact. Only about 70 employers paid the fee before it was struck down by a federal district court.

A wage-weighted selection system has replaced the old random lottery, giving higher-paid applicants a better chance of selection. The regime is also introducing an additional $4,000 H-1B fee for large H-1B-dependent employers on initial hiring and qualifying extension applications.

The US Department of Labour has proposed substantially higher prevailing-wage levels for H-1B holders, which could have a significant impact on employers. National Foundation for American Policy states that, on average, H-1B visa holders are paid more than comparable US workers.