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The Trump administration claims that this hefty fee is intended to ensure that only exceptionally skilled individuals are allowed entry, preventing them from displacing American workers.

This initiative aims to safeguard American jobs while providing companies with a means to recruit truly exceptional talent from abroad. Companies are responsible for sponsoring H1-B applicants.

"We need workers. We need great workers, and this policy guarantees that we will achieve that," Trump stated during the signing ceremony in the Oval Office, accompanied by Commerce Secretary Howard Lutnick.

Lutnick noted that historically, the employment-based Green Card program admitted 281,000 individuals annually, with an average income of USD 66,000, and these individuals were five times more likely to rely on government assistance.

"We were admitting individuals from the bottom quartile, which is illogical. We are the only country doing this," Lutnick remarked.

"We will cease this practice and focus on attracting extraordinary talent at the top tier, rather than those who might take jobs from Americans. This program is projected to generate over USD 100 billion for the US treasury," he added.

Trump mentioned that these funds would be utilized to reduce taxes and pay down national debt, expressing optimism about the initiative's success.

Lutnick confirmed that the USD 100,000 fee would be charged annually.

This policy is expected to have a profound effect on Indian tech workers employed by various companies on H1-B visas, which are valid for three years and can be extended for an additional three years.

If a company sponsors an employee for a Green Card, the visa can be renewed until permanent residency is granted. However, many Indian workers face a lengthy wait for Green Cards, and the new fee could influence their ability to remain in the US if their employers opt not to pay the annual USD 100,000 fee.

"The intention is clear: large tech firms will no longer train foreign workers without significant costs. They must pay the government USD 100,000, in addition to the employee's salary. This makes it economically unfeasible. Companies should focus on training recent graduates from American universities instead of bringing in foreign workers to fill jobs," Lutnick explained.

Trump asserted that tech companies are supportive of this change, stating, "They really love it. They need it. The key is that we will attract outstanding individuals."

Additionally, Trump signed an executive order called 'The Gold Card', which aims to create a new visa pathway for individuals with extraordinary abilities who are dedicated to contributing to the US.

Under the Gold Card program, individuals who can contribute USD 1 million to the US Treasury, or USD 2 million if sponsored by a corporation, will receive expedited visa processing and a pathway to a Green Card.

"We will generate hundreds of billions of dollars through the Gold Card program, allowing companies to retain essential personnel. They require expertise, and this initiative will be beneficial. The funds will be used to lower taxes and reduce debt," Trump stated.

When questioned about whether the new USD 100,000 fee would apply to existing H1-B visa holders, Lutnick clarified, "Renewals and new applications will depend on the company's assessment of the individual's value. If they are deemed valuable enough to warrant the USD 100,000 fee, they will stay; otherwise, they will need to return home and hire an American."

"The maximum duration is six years, so the total cost would be USD 600,000. The goal is to ensure that only the most valuable individuals are allowed entry, while prioritizing American workers. The president's message is clear: only valuable individuals for America," Lutnick emphasized.

Regarding concerns from technology CEOs who employ foreign workers on H1-B visas, Trump expressed confidence that they would be pleased with the changes.

"Everyone will be satisfied. We will retain productive individuals in our country, and many companies will be willing to invest significantly in this," he concluded.