A significant change in the immigration landscape is set to take effect this Sunday, with a new $100,000 fee for H-1B visas introduced by President Trump. However, this fee will not be applicable to current holders of valid H-1B visas who are re-entering the United States, according to a White House official speaking to Axios.
The introduction of this fee is critical as it has stirred confusion among legal practitioners and H-1B workers alike. Initial interpretations of President Trump’s executive order led some lawyers to believe that the H-1B visa fee would take effect immediately for existing visa holders. This misunderstanding prompted urgent advice for clients to return to the U.S. by Saturday to avoid any complications.
On Friday night, President Trump signed an executive order mandating that either the H-1B holder or their corporate sponsor must pay an annual $100,000 fee for their visa. This could impose a significant financial burden on major H-1B employers, such as tech giants like Microsoft and Amazon, as well as outsourcing firms like Cognizant. The projected total fee burden for these companies could exceed $1 billion annually.
The rules governing the new fee will commence at 12:01 a.m. ET on Sunday. However, some legal experts argued that the language of the executive order suggested that the fee might apply to all current H-1B holders, especially those who are outside the U.S. for various reasons. In light of this, certain tech companies advised their H-1B employees to return to the U.S. by Saturday to avoid any potential issues.
Despite the confusion, the White House official clarified that the $100,000 H-1B visa fee will only affect new applicants and will not impact existing visa holders or those seeking renewals. The new fee structure will first be implemented during the upcoming lottery cycle for new applicants, providing a clearer pathway for those looking to secure H-1B visas.
The ongoing debate surrounding H-1B visas has been a contentious aspect of President Trump’s immigration policy. While traditional allies of the MAGA movement, such as Steve Bannon, argue that U.S. employers exploit the H-1B visa program to hire foreign tech workers at lower wages, newer supporters in Silicon Valley advocate the necessity of H-1B visas for attracting top global talent to the United States.
In a statement, White House spokeswoman Taylor Rogers emphasized that this new fee is a common-sense measure aimed at prioritizing American workers. She asserted that it discourages companies from misusing the system, ultimately protecting wages and ensuring that American businesses seeking high-skilled workers can do so without facing exploitation.
As the new fee takes effect, questions remain regarding the potential impact on existing H-1B holders who may travel after Sunday. It is crucial for these workers to stay informed about the evolving regulations and seek legal advice if necessary to navigate the changing landscape of H-1B visa policies.
