New Presidential Proclamation Imposes $100,000 Fee on H-1B Visa Applications
On Friday, President Donald Trump signed a proclamation introducing a $100,000 fee on new H-1B visa applications, a significant shift in U.S. immigration policy. The fee is set to take effect at 12:01 a.m. Eastern Time on the following Sunday, targeting employers seeking to hire skilled foreign workers through this visa program.
Tech Giants Advise H-1B Visa Holders to Remain in the United States
In response to the new fee, major technology companies including Amazon, Google, and Microsoft have issued internal communications advising employees holding H-1B visas to avoid international travel. These companies have urged their visa-dependent workforce to stay within U.S. borders to prevent complications arising from the new regulation. Employees currently abroad on H-1B visas have been encouraged to return to the United States before the fee’s implementation to avoid potential issues with visa re-entry or application processing delays.
“We recommend that all employees holding H-1B visas refrain from foreign travel until further notice to mitigate risks associated with the new fee,” a Microsoft internal memo stated.
According to recent government data, Amazon has been the largest sponsor of H-1B visas in the current fiscal year, followed by Tata Consultancy Services, Microsoft, Meta, and Apple. Google ranks sixth in the number of H-1B visas granted. This concentration highlights the significant reliance of major tech firms on foreign talent through the H-1B program, underscoring the potential impact of increased fees on their workforce strategies.
Clarification on Fee Applicability
A White House official confirmed to Axios that the $100,000 fee will apply exclusively to new H-1B visa applications. Existing visa holders and those seeking renewals are exempt from this charge, providing some relief to current employees.
FinOracleAI — Market View
The imposition of a $100,000 fee on new H-1B visa applications represents a significant policy shift with broad implications for the technology sector’s talent acquisition and mobility.
- Opportunities: Increased domestic talent development; potential for greater investment in automation and AI solutions to reduce reliance on foreign labor.
- Risks: Reduced access to global talent pools; increased operational costs for tech companies; potential delays in hiring skilled workers; disruption to international employee mobility.
Impact: This policy change is likely to constrain the hiring flexibility of major technology firms, potentially slowing innovation cycles and increasing costs. Companies will need to adapt their workforce strategies, balancing domestic recruitment efforts with the challenges posed by stricter visa regulations.
