After wave of panic, impact of US visa hike still unclear

Abuses alleged

The proclamation said the number of foreign STEM (Science, Technology, Engineering and Maths) workers in the US had more than doubled between 2000 and 2019, from 1.2 million to almost 2.5 million.

However, online research shows no reliable data on the exact number of H-1B holders, with several estimates putting the current number between 500,000 and 730,000.

Trump said that the abuse of the H-1B visa program is the key to the "influx of foreign STEM labor" and "has made it even more challenging for college graduates trying to find IT jobs, allowing employers to hire foreign workers at a significant discount to American workers".

Without naming names, the proclamation listed examples, adding that companies had laid off "qualified and highly skilled American workers and simultaneously hired thousands of H-1B workers".

"A third company has reduced its workforce by approximately 27,000 American workers since 2022, while being approved for over 25,000 H-1B workers since FY (fiscal year) 2022. A fourth company reportedly eliminated 1,000 jobs in February; it was approved for over 1,100 H-1B workers for FY 2025," according to the proclamation.

Last year, a US jury found Cognizant Technology Solutions — which employed the second-highest number of H-1B workers in 2024 — favored visa holders from India over local workers.

The plaintiffs said at least 75 percent of Cognizant's US workforce is South Asian, primarily from India. In comparison, about 12 percent of the total US IT workforce is South Asian.

Trump said that these abuses have discouraged US citizens from pursuing careers in science and technology, risking US leadership in these fields. He said he hopes the higher costs of the H-1B program will help to address the abuse of the program.

Before the proclamation, companies had been paying $2,000 to $5,000 for each H-1B application.

In some instances, the $100,000 fee can be waived if the secretary of homeland security determines the hiring of H-1B workers "is in the national interest and does not pose a threat to the security or welfare of the United States", according to the proclamation.

"The proclamation allows for potential exemptions, which can include physicians and medical residents," White House spokeswoman Taylor Rogers told Bloomberg.

Many people welcomed the administration's decision, saying that it will give young US citizens better employment opportunities. "I think it's great. Hire local. There are plenty of talented US citizens and permanent residents desperate for a job. Stop trying to cheap out," one commented on the social network Reddit.

"As the former head of strategy for one of the world's largest IT services companies, I know a lot more about the abuses of the H-1B visa program than most people," a New York Times reader commented. "They were not more skilled than American IT workers. They were cheaper and more compliant. The relationship was exploitative."

Many comments spoke of witnessing similar experiences. "Most American technology engineers were being replaced by H-1B employees, mainly from India," another NYT reader said.