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"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.
Trump's order mentions "abuse" of the programme and will restrict entry unless payment is made.
Critics 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 £1m.
Trump's order is due to come into force on 21 September. It would only apply to new requests, but companies would have to pay the same amount for each applicant for six years, US Commerce Secretary Howard Lutnick said.
India was the largest beneficiary of H-1B visas last year, accounting for 71% of approved applications, Reuters news agency reports, citing government data.
China was said to come in second at 11.7%.
Tahmina Watson, a founding attorney at Watson Immigration Law, told the BBC that the ruling could be a "nail in the coffin" for many of her clients that are mostly small businesses and start-ups.
"Almost everyone's going to be priced out. This $100,000 as an entry point is going to have a devastating impact," she added, noting that many small or medium-sized companies "will tell you they actually can't find workers to do the job".
"When employers sponsor foreign talent, more often than not, they're doing that because they have not been able to fulfil those positions," Ms Watson added.
Jorge Lopez, the chair of the immigration and global mobility practice group at Littler Mendelson PC, said a $100,000 fee "will put the brakes on American competitiveness in the tech sector and all industries"."

H-1B: Trump adds $100,000 fee for skilled worker visa applicants
"Train Americans," the US commerce secretary told big companies, some of which have relied on foreign high-skilled workers for years.
