In a bold move to reshape the landscape of foreign labor in the United States, President Donald Trump has introduced a significant financial barrier for H1-B visa applicants.

On Friday, Trump signed two executive orders that impose a steep $100,000 annual fee on H1-B visa applications and introduce a pricey "Gold Card" program for expedited processing, aiming to curb the influx of foreign workers and prioritize American job opportunities, as the New York Post reports.

The first executive order, signed on Friday, mandates an annual fee of $100,000 for all H1-B visa applications. This fee applies not only to new applicants but also to those seeking to renew their visa status. It must be paid each year for a duration of six years.

Steep cost meant to limit foreign workers

The H1-B visa program, which allows hundreds of thousands of foreign workers into the U.S. annually, has long been a point of contention for the administration. Officials argue that it enables companies to hire lower-wage employees from abroad, which they believe depresses salaries for American workers.

Additionally, the White House has expressed concern over the impact of foreign workers in STEM fields. They contend that the presence of these workers discourages American students from entering these critical areas, posing a potential national security risk.

Tech companies, which heavily depend on H1-B visas to attract international talent, are likely to feel the brunt of this new policy. According to Newsweek, about 60% of computer-related positions in the U.S. are currently held by H1-B visa holders.

Gold Card program sparks controversy

The second executive order introduces a "Gold Card" program designed to offer expedited visa processing for those willing to pay a premium. Individuals can access this fast-track option for a fee of $1 million, while corporations sponsoring applicants must pay $2 million.

Trump commented on the potential financial impact of this initiative.

"The Gold Card will be taking in hundreds of billions of dollars, and companies will be able to keep some people that they need," he said.

He further elaborated on the intended use of the funds. "You know, they need people of expertise, great expertise, and it’s good," Trump added. "I think it’s going to be a fantastic thing. And we’re going to take that money, and we’re going to reduce taxes, we’re going to reduce debt."

Administration pushes for more American hiring

Commerce Secretary Howard Lutnick echoed the administration's stance on prioritizing American workers. "If you’re going to train somebody, you’re going to train one of the recent graduates from one of the great universities across our land," he stated. "Train Americans. Stop bringing in people to take our jobs."

Lutnick also emphasized the value-based approach of the new fees. "Either the person is very valuable to the company and America, or they’re going to depart and the company is going to hire an American," he added.

The administration’s latest actions are part of a broader effort to reform immigration policies related to employment. These executive orders aim to shift the focus toward domestic talent and address long-standing concerns about wage suppression.

Impact on tech industry looms large

As reported first by Bloomberg, these executive orders could significantly alter the hiring strategies of many U.S.-based companies. The tech sector, in particular, may face challenges in maintaining its current workforce composition due to the high costs.

With the $100,000 annual fee in place for six years, the financial burden on both workers and employers is substantial.

Many smaller companies might struggle to afford these fees, potentially limiting their ability to compete for global talent.

The introduction of the "Gold Card" program, while offering a faster path, comes at a steep price that only the wealthiest individuals or corporations might afford.

As the effects of these policies unfold, the debate over foreign labor and American job opportunities is likely to intensify.