US President Donald Trump, in a sweeping move on immigration, signed a proclamation on Friday that raises the annual H-1B visa fee to $100,000, effective September 21. The announcement has sent shockwaves through tech companies, which are urging employees on H-1B and H-4 visas to return to the US ahead of the deadline.
Who bears the cost?
The H-1B visa program allocates 65,000 visas annually for employers hiring temporary foreign workers in specialized fields, with an additional 20,000 visas for advanced degree holders. Under normal circumstances, almost all visa fees are the responsibility of employers. H-1B visas are issued for periods of three to six years, according to Reuters.
Trump justified the fee hike, claiming some employers have exploited the program to suppress wages, disadvantaging US workers.
Impact on Tech Companies
The $100,000 fee is expected to significantly affect the tech sector, which has contributed heavily to Trump’s campaign. Companies like Microsoft, JPMorgan, and Amazon have advised H-1B visa holders in the US to stay put and avoid international travel until official guidance is provided. Employees outside the US have been asked to return by Saturday midnight (0400 GMT Sunday) when the new fee structure takes effect.
JPMorgan, in an internal email, instructed employees: “H-1B visa holders currently in the US should remain here and avoid international travel until the government issues clear travel guidance.”
Trump’s Immigration Agenda
Since taking office in January, Trump has intensified immigration crackdowns. The H-1B visa overhaul is among the administration’s most prominent efforts to reshape temporary work visas. Commerce Secretary Howard Lutnick emphasized: “Train Americans. Stop bringing in people to take our jobs.”
This move is expected to create uncertainty for global tech firms and their employees, especially those of Indian origin, who form a significant portion of H-1B holders in the US.
