A significant change in US immigration policy has compelled Microsoft to issue an immediate advisory to its employees on H-1B and H-4 visas.
According to reports, starting September 21, companies will have to pay a $100,000 annual fee for each H-1B visa holder, following a new executive order signed by President Donald Trump.
Microsoft has asked all affected employees currently outside the US to return immediately, warning that re-entry after the deadline may be denied unless the fee is paid.
The company has also advised those already in the US to stay put for the foreseeable future.
An internal email reviewed by an agency claimed, “H-1B visa holders should stay in the US for the foreseeable future. Also recommend H-4 visa holders remain in the US. Strongly recommend H-1B and H-4 visa holders return to the US tomorrow before the deadline.”
The decision has raised concerns in the tech industry, which relies heavily on skilled workers from India and China.
According to reports, the $100,000 annual fee has significantly increased the cost of employment for sponsoring companies.
This change is expected to influence hiring and retention decisions, particularly for Indian IT professionals who constitute a large portion of the H-1B workforce.
Employees currently outside the US have been given a one-day window to re-enter before the September 21 deadline. After this point, re-entry would only be permitted if the $100,000 fee is paid.
Analysts have said that over the standard three-year H-1B visa term, the total fee could amount to $300,000. If a visa holder is unable to secure a renewal, green card, or alternate legal status by the end of this period, they are required to leave the country immediately.
Remaining in the US without lawful status would result in the accrual of unlawful presence, potentially triggering future bars on re-entry.
Some officials have publicly supported these changes, suggesting they are intended to reduce reliance on foreign workers. Critics also argue that the measures disproportionately affect Indian nationals, who continue to make up the majority of H-1B visa recipients.
Naturally, the executive order has sparked strong reactions in the US. US Commerce Secretary Howard Lutnick was quoted as saying, “If you’re going to train somebody, you’re going to train one of the recent graduates from one of the great universities across our land. Train Americans. Stop bringing in people to take our jobs.”
White House staff secretary Will Scharf reportedly said, “One of the most abused visa systems is the H-1B non-immigrant visa programme. This is supposed to allow highly skilled laborers who work in fields that Americans don’t work in to come into the United States of America. What this proclamation will do is raise the fee that companies pay to sponsor H-1B applicants to $100,000. This will ensure that the people they’re bringing in are actually very highly skilled and that they’re not replaceable by American workers.”
For the records, India remains the largest recipient of H-1B visas, accounting for 71% of approved beneficiaries last year, with China at 11.7%. In the first half of 2025, Amazon and its cloud unit AWS secured more than 12,000 H-1B approvals, while Microsoft and Meta each obtained over 5,000.
India’s position in the H-1B visa demographics could be gauged from the figures released three years ago. According to Boundless.com: “The majority of approved petitions (nearly 73%) in FY 2022 went to workers from India. China came in second, representing 12.5% of approved applications. The remaining top 8 countries accounted for nearly 6% of all approvals.”
Interestingly, recent reports claimed that India did not raise any concerns regarding Donald Trump’s executive order aimed at curbing visa abuses, which has resulted in restrictions on the issuance of H-1B visas for Indian IT workers. Media outlets reported that the topic was notably absent from discussions during Prime Minister Narendra Modi’s recent visit to the US. Congress leader Rahul Gandhi broached the issue on X, displaying a report headlined: H-1B didn’t figure in Modi-Trump talks’.
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