President Donald Trump has sparked controversy with a new proclamation that slaps a $100,000 fee on companies hiring foreign workers through the H-1B visa program, as Breitbart reports.

This policy, aimed at prioritizing American graduates for high-skilled jobs, faces immediate legal challenges and doubts over its effectiveness due to potential loopholes.

Recently, Trump issued a proclamation titled "Restriction on Entry of Certain Nonimmigrant Workers," targeting what he sees as misuse of the H-1B visa system. The directive accuses U.S. companies of sidelining skilled American graduates by hiring cheaper foreign labor.

Targeting foreign labor in tech sectors

The proclamation claims that such practices have "undermined both our economic and national security." It estimates that 2.5 million visa workers hold one in four tech jobs in the U.S., positions that could go to American professionals.

Under the new rules, federal agencies are instructed to impose the hefty fee for each new H-1B worker arriving from abroad. Agencies are also tasked with reducing fraud and barring foreign workers from entry-level roles needed by U.S. graduates.

Commerce Secretary Howard Lutnick emphasized the intent behind the policy during the signing. He urged companies to focus on training American talent rather than importing labor.

American workers feel sidelined

Many white-collar American professionals have voiced frustration over being overlooked for jobs. Individuals like Katie Gallagher have shared experiences of stress and financial strain due to repeated rejections. She told the New York Times, "The stress of rejection is unbearable, along with the looming threat of financial insecurity."

Gallagher added, "I have never felt depression like this before in my life." Such sentiments resonate with millions of sidelined workers who see the policy as a potential lifeline.

The proclamation highlights data showing foreign STEM workers in the U.S. doubled from 1.2 million in 2000 to 2.5 million in 2019. In IT specifically, foreigners now hold about 66% of jobs, a sharp rise since 2003.

Corporate layoffs linked to visa hiring

Examples of corporate behavior fuel the debate, as some firms reportedly shut down IT divisions and lay off American staff. One company cut 2,400 jobs in Oregon while securing 1,700 H-1B approvals for fiscal year 2025.

Another company reduced its workforce by 27,000 since 2022 while gaining approval for 25,000 H-1B workers.

Despite the policy's intent, implementation faces significant hurdles. Immigration lawyers have already pointed out gaps, noting the fee applies only to new H-1B arrivals from outside the U.S., not to extensions for the 700,000 workers already here.

Additionally, the fee does not cover foreign students transitioning from F-1 to H-1B visas.

Programs like OPT and CPT, which granted work permits to 400,000 foreign graduates in 2024, remain unaffected by the new rules.

Legal challenges loom

Lawyers also criticize the vague wording of the proclamation, predicting a wave of lawsuits. Bloomberg reported that the policy could severely impact businesses and expects immediate legal pushback. Exemptions for "national interest" further complicate enforcement, as nearly any employer might claim eligibility.

Groups like U.S. Tech Workers argue the measure falls short, as major tech firms rely on L-1 visas and student visa conversions, bypassing the fee. They insist that ending the OPT program is critical to truly support American STEM graduates.

While some, like Mark Krikorian of the Center for Immigration Studies, welcome the intent, they stress that specifics will determine its success. Meanwhile, online reactions are mixed, with some Americans expressing relief and Indian visa workers fearing deportation.

The debate continues as Trump’s policy, signed alongside Lutnick, aims to reshape the landscape of high-skilled labor in the U.S.