Washington, D.C.: The US tech world was shaken on Friday after President Donald Trump announced a massive $100,000 annual fee for H-1B visas, a move expected to hit Indian workers the hardest. Adding fuel to the fire, billionaire entrepreneur Elon Musk sparked fresh controversy with his contradictory stance on the visa program that once allowed him to build his own career in America.
Musk Changing Stand
Elon Musk, the CEO of Tesla and SpaceX, has long credited the H-1B visa program for enabling talented foreign professionals to help build some of the most successful companies in the US. In December last year, he strongly defended the scheme.
“The reason I’m in America along with so many critical people… is because of H1B,” Musk wrote on X (formerly Twitter). He even warned opponents:
“I will go to war on this issue the likes of which you cannot possibly comprehend.”
But in a surprising U-turn, Musk changed his tone within hours, admitting that the program is “broken” and in need of “major reform.” By the next day, he doubled down, suggesting sweeping changes that would make it more expensive for firms to hire foreign workers than Americans.
What Is the H-1B Visa?
The H-1B visa allows highly skilled foreign workers — including software engineers, IT professionals, scientists, and managers — to live and work in the United States. It is initially valid for three years and can be extended for another three.
Indian professionals form the largest group of H-1B holders, making Trump steep fee hike a direct blow to India tech workforce in Silicon Valley and beyond.
Musk Proposed Fix
While criticizing the existing system, Musk suggested reforms such as:
- Raising the minimum salary for H-1B visa holders
- Introducing an annual “maintenance cost” to discourage over-reliance on foreign hires
These proposals align in part with Trump “America First” agenda but sparked anger within the tech industry, which has long depended on H-1B workers.
Trump Gold Card Twist
Defending his policy, Trump claimed the $100,000 fee would “incentivize hiring American workers” while ensuring that only companies willing to pay a premium would bring in foreign talent.
At the same time, the White House unveiled a new “Gold Card Visa Program”, including:
- Trump Gold Card
- Trump Platinum Card
- Trump Corporate Gold Card
These would replace many traditional employment-based visas, targeting “extraordinary individuals” such as professors, scientists, athletes, artists, and innovators. However, unlike H-1B, these visas would not directly offer pathways to citizenship.
Tech Industry Reacts
The sudden policy shift has triggered panic in Silicon Valley, where thousands of companies rely on H-1B workers. Industry leaders argue that the fee hike will cripple innovation, reduce competitiveness, and shut the door on global talent.
For Indian IT workers — who make up the majority of H-1B visa holders — the new rules could mean higher barriers to entry and job losses.
The Bigger Battle Ahead
Musk contradictory statements have left many puzzled. Critics point out the irony that he benefited from the very system he now calls “broken.”
With Trump reforms threatening to reshape the way talent enters the US, the debate over H-1B visas is set to become one of the biggest battles between the tech industry and the Trump administration in the coming months.
