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 £1 million.
Joining Trump in the Oval Office 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 totaling 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, an attorney at Watson Immigration Law, cited concerns that the ruling could be a nail in the coffin for many small businesses, asserting that the high fee may eliminate opportunities for skilled foreign workers that smaller firms often rely on.
Other experts also expressed fears that this fee could stifle competition in the tech sector, possibly leading some companies to relocate outside the US.
The debate over H-1Bs has previously caused divisions within Trump's team, highlighting differing opinions on immigration within his administration.
Trump has historically shown both understanding and frustration with the H-1B visa system, previously promising to make it easier for tech talent to secure employment in the US.