The Trump administration has unveiled sweeping changes to the H-1B visa programme, announcing a new $100,000 (Ksh12.9 Million) annual fee for companies employing foreign workers under the scheme.
The move, which officials say will apply for each of the three years a visa is valid, has sent shockwaves through the US technology sector, which depends heavily on skilled workers from India and China.
Commerce secretary Howard Lutnick framed the measure as part of a broader effort to prioritise American workers.
“If you’re going to train somebody, train one of the recent graduates from our great universities,” he said. “Stop bringing in people to take our jobs.”
Major employers including Microsoft, JPMorgan Chase and Amazon warned staff on H-1B visas not to travel outside the US, with some urging those abroad to return before the new rules take effect.
The programme, long criticised by labour groups for allowing companies to undercut US wages, has also been defended by business leaders as essential to filling gaps in science, technology, engineering and maths.
Elon Musk, the Tesla chief executive and a former H-1B holder, has argued the visas help maintain America’s competitive edge.
India, which accounts for more than 70% of H-1B approvals, is likely to be hit hardest. Analysts warned that the new fee structure could force firms to offshore more work, undermining the US position in areas such as artificial intelligence.
“In the short term, Washington may collect a windfall,” said analyst Jeremy Goldman. “In the long term, the US risks taxing away its innovation edge.”
Critics also questioned the legality of the plan, noting that Congress has only authorised fees to cover processing costs.
Shares in outsourcing giants Infosys and Wipro slid after the announcement, reflecting fears of a major disruption to global tech labour flows.
