President Donald Trump has signed an executive order that increases fees for the H1B visa to $100,000 per year, leading to panic among tech workers over this sudden change. The rule goes into place on Sunday at 12:01 a.m. ET with many people concerned about how it will impact visa holders.
White House officials were quick to clarify the situation. Current H1B visa holders will be able to avoid paying the fee. Axios shares after Saturday’s announcement that the fee will only apply to new applicants. Current employees and companies can now breathe a sigh of relief.
Trump’s announcement caused immediate confusion. Lawyers saw ambiguous language in the executive order and were uncertain whether the new fee would apply to renewals and re-entries. A few suggested clients return home as quickly as possible to avoid paying the fee starting Sunday. The travel industry went into a frenzy with many Indian techies currently working abroad wondering what to make with the pending costs.
H1B visas currently only cost $215 for foreign workers. The increase to $100,000 is extremely shocking for all workers, but large companies such as Microsoft and Amazon will have to bear the costs of billions of dollars. For example, for any foreign worker that current earns under $100,000 the number becomes quite concerning for companies.
Axios conservatively estimated some larger companies may see costs increase by more than $1 billion. Cognizant and other companies will have to adjust their plan immediately.
The H1B visa enables US companies to hire cheap labor from foreign workers. Many H1B workers earn less than $100,000 per year. For many similar jobs in the US, foreign workers earn much less than their counterparts. Trump wants to support local hiring at this moment. Commerce Secretary Howard Lutnick is emphasizing this point. “Train Americans first,” he says pointedly.
US Official Reassures Indian Media
A US official in an interview with the media said.. “If you are an Indian holding an H-1B, you shouldn’t rush back to the US. Simply because there is a $100,000 payment does not prevent you from re-entry on Sunday.” Stay calm and don’t generate panic unnecessarily. My missions are helping travelers who are stranded to make it home in 24 hours.
S Mahendra Dev, Chairman, EAC-PM thinks there are potential upsides. “India’s goal is to become a developed nation by 2047.” Dev estimates that there is already “a surge” of new startups being created in Bengaluru and Hyderabad. New companies are also being created in the tech hubs of Gurgaon. If those workers stay home, the local economy will benefit. Some people indicated possible interest working in countries such as Canada. “It’s a gain for us,” Dev told media.
This fee will be in place for the upcoming lottery cycles. New applicants will be impacted right away. Tech companies are going to immediately rethink hiring. Global talent transfers may soon change direction. Watch for additional clarifications from the White House. This policy tests US immigration balance.
Trump’s bold move is already creating a wave of debate. It defends American workers, but it complicates innovation. Current holders remain in their spot for now. New applicants will have to carefully weigh the costs. Monitor for updates as we navigate changes daily.
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