On Friday, local time, US President Donald Trump signed a proclamation requiring a $US100,000 ($150,000) annual visa fee for highly-skilled foreign workers.
He also signed an executive order to roll out new $US1 million "gold card" visas, offering a potential pathway to US citizenship for wealthy foreigners.
These eye-watering price hikes will boost the cost of the high-skilled H-1B visa from $US215 and the investor visas from a maximum of $US20,000 to $US1 million for the "gold card".
But what exactly does it mean? And who will be most impacted?
Let's dive in.
What is the H-1B visa?
The H-1B visa requires at least a bachelor's degree and is principally used for high-skilled jobs that tech companies can struggle to fill.
Critics of the program, including many US tech workers, argue it allows firms to suppress wages and sideline Americans who could do the jobs.
They say many overseas workers are willing to work for as little as $US60,000 annually, well below the $US100,000-plus salaries typically paid to US tech workers.
But supporters, including Tesla chief executive Elon Musk, say the visa program brings in the highly skilled workers needed to fill talent gaps and keep firms competitive.
Why has the price for H-1B visas increased?
US Commerce Secretary Howard Lutnick hopes the price hike will dissuade tech companies from preferencing overseas workers over Americans.
"If you're going to train people, you're going to train Americans. Stop bringing in people to take our jobs," he told reporters.
"If you have a very sophisticated engineer and you want to bring them in ... then you can pay $US100,000 a year for your H-1B visa."
He said the change will likely result in far fewer H-1B visas than the 85,000 annual cap allows because "it's just not economic anymore".
Who will be impacted?
India will likely be most impacted by this price increase, accounting for 71 per cent of approved beneficiaries of H-1B visas last year.
China was a distant second at 11.7 per cent, according to government data.
Tech heavyweights may also feel the pinch.
This year, Amazon was by far the top recipient of H-1B visas with more than 10,000 awarded, followed by Tata Consultancy, Microsoft, Apple and Google.
What has been the response?
We're yet to hear from the biggest tech companies.
Representatives for Amazon, Apple, Google and Meta did not immediately respond to requests for comment on Friday, while Microsoft declined to comment.
However, Mr Trump insisted the tech industry would not oppose the move, with Mr Lutnick claiming "all the big companies are on board".
"We've spoken to them," he said.
Meanwhile critics of the H-1B visas have celebrated the move, with advocacy group US Tech Workers calling it "the next best thing" to abolishing the visas altogether.
What are the concerns?
But the move has also attracted significant concern.
Deedy Das, partner at venture capital firm Menlo Ventures, fears the new fees will discourage the "world's smartest talent" from choosing to work in the US.
"It drastically reduces [the United States'] ability to innovate and grow the economy," he said on X.
Some analysts worry the fee may force companies to move some high-value work overseas, hampering America's position in the high-stakes artificial intelligence race with China.
"In the short-term, Washington may collect a windfall," eMarketer analyst Jeremy Goldman said.
"In the long-term, the US risks taxing away its innovation edge, trading dynamism for short-sighted protectionism."
Meanwhile Doug Rand, a senior official at US Citizenship and Immigration Services during the Biden administration, said the proposed fee increase was "ludicrously lawless".
"This isn't real policy — it's fan service for immigration restrictionists," Mr Rand said.
"Trump gets his headlines, and inflicts a jolt of panic, and doesn't care whether this survives first contact with the courts."
What is the 'gold card' visa?
Mr Trump also announced he will start selling a $US1 million "gold card" visa with a path to US citizenship after vetting.
This will replace the current EB-1 and EB-2 visa programs for people who are of "exceptional value" to the United States, Mr Lutnick said.
A "Trump Platinum Card" will also be available for $US5 million.
This will allow foreigners to spend up to 270 days in the US without being subject to US taxes on non-US income.
Mr Lutnick said these gold and platinum cards would replace employment-based visas that offer paths to citizenship, including for professors, scientists, artists and athletes.
He said the H-1B fees and gold card could be introduced by the president — but the platinum card needs congressional approval.
ABC/Wires
