US President Donald Trump signed a proclamation imposing a massive new fee on H-1B visas. The order mandates a one-time $100,000 fee for new petitions. This move immediately sparked concern among major US corporations and foreign workers. It represents a dramatic increase from current application costs.
The proclamation took effect immediately on September 21. It targets companies that rely heavily on skilled foreign labor. The White House clarified the fee applies only to new petitions in the next lottery.
Corporate Backlash and Immediate Fallout from Visa Fee Hike
Major tech firms reacted with swift internal advisories. Companies like Amazon and Microsoft warned employees abroad. They advised workers to return to the US before the deadline. The goal was to avoid potential complications from the new rule.
According to Reuters, the US Chamber of Commerce expressed serious concern. They highlighted the impact on employees, their families, and American employers. The business group stated it is working to understand the full implications of the order. The policy directly affects a significant portion of the tech workforce.
Indians constitute the vast majority of H-1B visa holders. They received over 70% of these visas in 2024. The new fee far exceeds the median salary for many new visa holders. This creates a substantial financial barrier for both companies and prospective employees.
White House Clarifies Scope of New H-1B Visa Rule
Anxiety spread quickly among visa holders and their families. In response, the White House issued clarifying statements. Spokesperson Karoline Leavitt confirmed key exemptions on social media.
She stated the fee is a one-time charge per petition. It does not apply to existing visa holders re-entering the country. Renewals for current H-1B workers are also exempt from the new $100,000 fee. This clarification provided some relief for those already working in the United States.
The fee will first apply in the next H-1B lottery selection process. This gives companies a short window to prepare for the significant cost increase. The long-term effect on American competitiveness for global talent remains a central question.
This sudden H-1B visa fee change marks a pivotal shift in US immigration policy. Its $100,000 cost introduces a major hurdle for accessing global tech talent. The full impact on the industry and international workers will unfold in the coming months.
Info at your fingertips
Q1: Who has to pay the new $100,000 H-1B visa fee?
The fee is paid by the employer sponsoring the visa. It is a one-time cost for each new H-1B petition filed during the lottery selection process.
Q2: Does this fee affect current H-1B visa holders?
No. The White House confirmed current holders are exempt. The fee does not apply to visa renewals or for re-entering the US with a valid visa.
Q3: Why did the Trump administration implement this fee?
The proclamation aims to prioritize American workers and generate revenue. Officials argue it will discourage companies from over-relying on foreign talent for certain roles.
Q4: Which countries are most affected by this decision?
India is the most affected nation. Indian citizens received 71% of all H-1B visas granted in the 2024 fiscal year. China is a distant second.
Q5: How do companies like Amazon view this change?
Major tech firms have expressed deep concern. They have issued internal guidance advising employees on international travel to avoid being caught by the new rule.
Trusted Sources: Associated Press, Reuters, Hindustan Times.
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