WASHINGTON: The White House issued a major clarification stating that a new $100,000 fee for H-1B visas will be a one-time payment imposed only on new applicants.
This announcement came after US Commerce Secretary Howard Lutnick had repeatedly stated the fee would be applied annually, causing significant confusion within the tech industry.
A White House official confirmed on Saturday that the fee is a one-time charge that applies only to the petition and not to renewals or current visa holders.
The official spoke on condition of anonymity after the text of the executive order left many current visa-holders uncertain about whether it applied to them.
The executive order comes into force on Sunday at 12:01 am (0401 GMT), though it is likely to face legal challenges.
Prior to this clarification, US companies were scrambling to understand the implications for their foreign workers, with several reportedly warning employees not to leave the country.
Some individuals who were already on planes preparing to leave on Friday de-boarded over fears they might not be allowed to re-enter the United States.
H-1B visas allow companies to sponsor foreign workers with specialised skills such as scientists, engineers, and computer programmers to work in the United States.
These visas are initially granted for three years but are extendable to six, and they are widely used by the technology industry.
Indian nationals account for nearly three-quarters of the permits allotted via the annual lottery system.
The United States approved approximately 400,000 H-1B visas in 2024, with two-thirds of those being renewals.
US President Donald Trump announced the change on Friday, arguing it would support American workers by addressing exploitation of the program.
The executive order stated that the H-1B program has been deliberately exploited to replace American workers with lower-paid, lower-skilled labour.
Trump also introduced a $1 million gold card residency program that he had previewed months earlier.
Lutnick, who joined Trump in the Oval Office, had said multiple times that the fee would be applied annually.
He suggested companies should decide if a worker is valuable enough to justify a $100,000 annual payment to the government or instead hire an American.
Though Lutnick claimed that all the big companies were on board, many businesses expressed confusion about the order’s details.
US bank JPMorgan confirmed it sent a memo to employees with H-1B visas advising them to remain in the United States and avoid international travel.
Tech entrepreneurs including Trump’s former ally Elon Musk have warned against targeting H-1B visas, citing a shortage of homegrown talent for tech sector jobs.
India’s top IT industry body Nasscom said the new measure would hit business continuity and expressed concern about the short implementation timeline.
The organisation stated that a one-day deadline creates considerable uncertainty for businesses, professionals, and students worldwide.
India’s foreign ministry said the mobility of skilled talent has contributed to technology development and economic growth in both countries.
It added that the new measure would likely have humanitarian consequences by disrupting families and hoped US authorities would address these concerns. – AFP
