US President Donald Trump has signed an executive order that will add a $100,000 (£74,000) annual fee for applicants to the H-1B visa programme for skilled foreign workers.

The order cites 'abuse' of the programme, restricting entry unless payment is made. Critics argue that H-1B visas undercut the American workforce, while supporters, including billionaire Elon Musk, claim they are essential for attracting global talent.

This new regulation is set to come into effect on September 21 and will only apply to new applications. Companies would be required to pay this fee for each applicant for the next six years, potentially reshaping the way businesses hire.

Commerce Secretary Howard Lutnick noted that companies must evaluate whether a foreign applicant is worth the $100,000 fee or if they should hire domestically instead. Since 2004, the number of H-1B applications has been capped at 85,000 per year, with the new financial requirements likely lowering overall application numbers.

Many in the business sector are expressing concern, particularly small businesses, as the order could cost them billions. The visa program, vital to many technology firms, has had its applications decline to a four-year low, significantly impacting companies like Amazon and other major tech players.

India accounts for 71% of the approved H-1B applications, signaling the potential global impact of Trump’s new order, as many students and professionals from the country prepare to face uncertainty regarding their ambitions in the U.S.

The introduction of a 'gold card' was also mentioned in the order, which would facilitate fast-tracked visas for certain investors, emphasizing a shift in focus toward high-value immigration.

Industry advocates warn that this might push many companies to consider operating outside the U.S., complicating the path for tech firms and startups seeking to hire the necessary talent.