US says $100,000 fee for H-1B visas will not apply to existing holders

The new $100, 000 fee for skilled workers will be levied per petition, according to the United States, and it will not apply to current visa holders.

The US Secretary of Commerce, Howard Lutnick, announced the announcement on Saturday, one day after it was announced that it would be paid annually and apply to people looking for new visas as well as renewals.

Major tech companies, such as Amazon, Microsoft, Meta, and Alphabet, Google’s parent company, were urged to warn employees with H1-B visas to stay in the country or return quickly as a result of Lutnick’s comment.

However, White House spokesman Karoline Leavitt clarified that the fee will only apply to new visas and that the rule “does not impact the ability of any current visa holder to travel to/from the US.”

There is no annual fee for this. She wrote, “It’s a one-time fee that only applies to the petition.”

This only applies to new visas, not renewals, and not current visa holders, she added.

President Donald Trump signed the executive order enacting the new fee on Friday night, and it is scheduled to go into effect on Sunday at 12:01 a.m. (04:01 GMT).

It is expected to expire in a year. However, it could be extended if the Trump administration decides that keeping it is in the US’s best interests.

H-1B visas allow businesses to sponsor foreigners with specialized skills to work in the US, initially for three years but later extendable to six.

The tech sector uses a lottery system to distribute the visas, which are widely used. Nearly three-quarters of the permits are issued by Indian nationals.

Critics claim that the program undervalues American workers by attracting foreigners who frequently offer to work for as little as $ 60, 000 annually. That is significantly below the $100, 000+ salary that US technology workers typically receive.

Trump’s most recent plan was being “studied by all concerned, including by Indian industry,” according to the Indian Ministry of External Affairs on Saturday. The ministry cautioned that the disruption caused to families is likely to result in humanitarian effects from this measure. The US government hopes the government will take appropriate action to address these issues.

The US Chamber of Commerce expressed concern as well.

In a statement, it said, “We’re concerned about the effects on employees, their families, and American employers.” We are collaborating with the Administration and our members to fully comprehend the implications and the best course of action.

Many H-1B holders on the well-known Chinese social media app Rednote also shared stories of returning to the US for fear of paying the new fee.

Some passengers who were already on flights to leave the country on Friday de-boarded because they worried they might not be able to re-enter the country, according to the San Francisco Chronicle.

According to Allen Orr, a member of the National Bar Association’s immigration committee, the most recent order has “caused widespread confusion.”

According to Orr, workers with new or renewed H-1B visas who were outside the US were advised not to travel, which delayed start dates and raised costs of “cancellation of flights and housing.”

The attorney claimed that the Trump order was misleading about how talented foreign workers were being treated.

He said that if an H-1B worker receives $100, 000, it basically leaves them out of the market, and many of these positions will simply stay abroad.