United States President Donald Trump on September 19 signed a proclamation titled ‘Restriction on entry of certain non-immigrant workers’, and hiked H-1B visa fees to $1,00,000 for all new applications.
Amid vast confusion over the scope and finer details of the new rule, the White House then clarified that the hiked $1,00,000 fee (around ₹90 lakh) is not an annual charge and does not include current H1 B visa holders.
“This is NOT an annual fee. It’s a one-time fee that applies only to the petition and won’t apply to existing holders of valid visas re-entering the country,” White House spokesperson Karoline Leavitt said in a detailed post on X.
The H-1B programme grants 65,000 visas each year to employers hiring temporary foreign workers in specialised fields, along with an additional 20,000 visas for workers with advanced degrees. Almost all visa fees must be paid by employers. The H-1B visas are granted for a period of three to six years.
The hiked $1,00,000 H-1B visa fee takes effect at 12:01 a.m. USA East Coast time.
Here are the important points:
- This is NOT an annual fee. It’s a one-time fee that applies only to the petition.
- Those who already hold H-1B visas and are currently outside of the country right now will NOT be charged $100,000 to re-enter. H-1B visa holders can leave and re-enter the country to the same extent as they normally would; whatever ability they have to do that is not impacted by yesterday’s proclamation.
- This applies only to new visas, not renewals, and not current visa holders.
- It will first apply in the next upcoming lottery cycle.
There are a few individuals who will be exempted from this new hike. According to the White House, the fee only applies to new applicant and “does not impact the ability of any current visa holder to travel to/from the United States”. Also importantly, the proclamation allows for case-by-case exemptions if in the national interest, the White House statement added.
The stay of families of H-1B visa holders in the the US is directly tied to the status of the H-1B holder. If the worker loses their job or status, dependents also lose their legal stay.
- Families of H-1B vias holders usually come to the United States on H-4 visas. This visa is given to the spouse and unmarried children under 21 of an H-1B worker.
- H-4 family members are allowed to study full-time or part-time without needing a student visa.
- Work, however, is more limited. Spouses can apply for work permits in certain cases, mainly if the H-1B worker has reached a stage in the green card process, such as an approved I-140 petition. Children on H-4 visas are not allowed to work.
The exorbitant hike triggered a wave of panic among US companies, especially tech giants such as Meta and Microsoft.
- Microsoft has asked H-1B and H-4 visa holders who are currently outside the United States to return to the country before the September 21 deadline, reported Reuters.
- JP Morgan, on the other hand, asked the H-1B visa holder to avoid international travel until further guidance is provided.
- A Goldman Sachs internal memo reportedly seen by Reuters on Saturday urged employees with such visas to exercise caution on international travel.
Notably, Indian workers in the US are set to be the most impacted as more than 70 per cent of H-1B visa holders in the US are from the country.
The Indian government said all implications of the H-1B visa fee hike is being studied by those concerned. Prime Minister Narendra Modi is going to address the nation today at 5 pm though it is uncertain whether he will touch upon the issue or not.
The Ministry of External Affairs also warned that “this measure is likely to have far reaching consequences in India by way of the disruption caused for families. Government hopes that these disruptions can be addressed suitably by the US authorities.”
The US Chamber of Commerce also issued a statement which expressed similar concern: “We’re concerned about the impact on employees, their families, and employers. We’re working with the Administration and our members to understand the full implications and the best path forward.”
