US President Donald Trump has signed an executive order that will add a $100,000 (£74,000) fee for applicants to the H-1B visa programme aimed at bringing in skilled workers from abroad into certain industries.
The proclamation mentions abuse of the programme and will restrict entry unless payment is made.
Critics of the programme have long argued that H-1Bs undercut the American workforce, while supporters - including billionaire Elon Musk - argue it allows the US to attract top talent from around the world.
In another order, Trump set up a new gold card to fast-track visas for certain immigrants in exchange for fees starting at £1m.
Joining Trump in the Oval Office on Friday was US Commerce Secretary Howard Lutnick.
A hundred thousand dollars a year for H1-B visas, and all of the big companies are on board, he said. We've spoken to them.
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. Train Americans. Stop bringing in people to take our jobs.
Since 2004, the number of H-1B applications has been capped at 85,000 per year.
Until now, H-1B visas have carried various administrative fees totalling around $1,500.
Data from US Citizenship and Immigration Services (USCIS) shows that applications for H-1B visas for the next fiscal year fell to about 359,000 - a four-year low.
The greatest beneficiary of the programme the previous fiscal year was Amazon, followed by tech giants Tata, Microsoft, Meta, Apple and Google, according to government statistics.
Tahmina Watson, a founding attorney at Watson Immigration Law, told the BBC that the ruling could be a nail in the coffin for many of her clients that are mostly small businesses and start-ups.
Almost everyone's going to be priced out. This $100,000 as an entry point is going to have a devastating impact, she added, noting that many small or medium-sized companies will tell you they actually can't find workers to do the job.
Others, like Jorge Lopez from Littler Mendelson PC, argue that the hefty fee will hinder American competitiveness across numerous industries, prompting some to consider relocating operations abroad.
The decision has reignited debates surrounding immigration policy, particularly the balance between protecting American jobs and attracting international talent that drives industry growth.