Trump Introduces $100,000 Fee on H-1B Visas, Making the American Dream Costlier Than Ever

U.S. President Donald Trump has signed a sweeping executive order introducing a $100,000 fee for new H-1B visa applicants, a move that has triggered immediate concern across the global tech industry, foreign workers, and international trade bodies.

The H-1B visa programme, which enables skilled foreign professionals to work in the U.S., has long been central to America’s tech and innovation sectors. Until now, application fees for the visa averaged around $1,500. Trump’s US immigration news 2025, which comes into effect on 21 September 2025, marks the most significant fee hike in the programme’s history.

New H1-B Visa Rules and Clarifications

Initially, U.S. Commerce Secretary Howard Lutnick suggested companies would need to pay the fee annually for six years, sparking panic among employers. However, the White House later clarified that the fee will be a one-time payment and will only apply to new applicants in the February 2026 lottery who are currently outside the U.S. Existing visa holders will not be affected.

White House Press Secretary Karoline Leavitt emphasised that the fee is aimed at curbing “abuse” of the system. Still, the ruling has left companies scrambling to protect their workforce, with Amazon instructing its H-1B employees abroad to return to the U.S. before the deadline.

Why It Matters

If this change impacts only new applicants, why is everyone worried?

Because costs this steep will naturally deter new international professionals. That means fewer engineers, developers, and scientists arriving in the U.S., which could leave vacancy gaps in major tech hubs and rental-heavy metro areas.

Data shows the ripple effect:

• 400,000+ H-1B visas were approved in FY2024 – a large share went to Indian and Chinese professionals who also make up a huge segment of urban renters.
  
  
• India alone accounted for 71% of H-1B approvals last year, powering both tech companies and housing demand.
  
  
• With the pipeline shrinking, multifamily housing operators and student accommodation providers may see shifting demand patterns.

Impact on Housing and Rentals

While the skilled worker inflow may slow, another market is holding strong: purpose-built student accommodation (PBSA).

• Preleasing levels: 90%+ for Fall 2025
  
  
• Rents: Up 6.5% YoY, averaging $884 per bed
  
  
• Investor confidence: Per-bed pricing has risen 40% since 2019
  
  
• Demand drivers: Rising applications from both U.S. and international students

This suggests that while future talent pipelines may thin out, student housing remains a resilient asset class, and operators who adapt can ride the shift.

What Property Operators Can Do

For multifamily and PBSA operators, the mandate is both a challenge and an opportunity. Here’s how they can adapt:

1. Refocus on domestic demand – tap into a growing pool of American students and early professionals.
   
   
2. Diversify leases – use flexible contracts, short-term stays, and hybrid rental options.
   
   
3. Partner smartly – collaborate with platforms like Amber to access both local and global audiences.
   
   
4. Support affordability – look at housing subsidies, student discounts, or payment plans to keep occupancy steady.

Industry Backlash

Tech giants, including Amazon, Microsoft, Meta, Apple, and Google, historically among the largest H-1B employers, warned that the move could threaten America’s global competitiveness. Immigration attorney Tahmina Watson described the fee as a “nail in the coffin” for small businesses and start-ups, many of which rely on foreign talent to fill roles that local workers cannot.

“Almost everyone’s going to be priced out,” Watson said. “This $100,000 entry point will have a devastating impact.”

Jorge Lopez, chair of the immigration and global mobility practice group at Littler Mendelson PC, echoed those concerns, saying the steep cost could “put the brakes on American competitiveness in the tech sector and all industries.” Some companies may even consider relocating operations abroad, though such moves are complex and costly.

Can the American Dream Survive This Fee?

For international students eyeing the H-1B as a post-study pathway, the $100,000 hurdle raises serious questions. But resilience remains:

• More on-campus jobs and work hours can help students sustain living costs.
  
  
• Seamless visa transitions from F-1 to H-1B could keep the pipeline flowing without gaps.
  
  
• Hybrid or remote work could allow global talent to contribute without relocating immediately.

The Bottom Line

Trump’s H-1B visa fee hike is more than a policy shift – it’s a signal. The U.S. wants to prioritise domestic workers, but the ripple effect will reach far beyond politics, shaping housing markets, student experiences, and the global talent flow.

For now, the message to operators is clear: adapt, diversify, and prepare for a different kind of demand.