President Donald Trump’s recent proposal to revamp the U.S. immigration system has caused uncertainty, prompting the White House to clarify that a new $100,000 fee on visas for skilled workers will only be applicable to new applicants, not existing visa holders.
On Friday, Trump issued a proclamation mandating a $100,000 annual fee for visas intended for highly skilled positions that are challenging for technology companies to fill.
White House press secretary Karoline Leavitt emphasized in a statement on X (formerly Twitter) that individuals with current H-1B visas who are currently outside the country will not be required to pay $100,000 to return. The fee impacts new visa applications and not renewals or current visa holders.
The fee goes into effect at 12:01 a.m. ET Sunday and is set to expire after a year, with the possibility of extension based on U.S. national interests.
A social media post from the White House clarified that the new rule will not affect the travel rights of current visa holders.
However, the sudden White House action has thrown the lives of many skilled workers into disarray, according to immigration attorney Kathleen Campbell Walker of Dickinson Wright in El Paso, Texas.
Commerce Secretary Howard Lutnick initially mentioned that the fee would be an annual expense for companies, but a White House official later clarified that it is a one-time fee. There is ongoing discussion about whether the fee will apply to renewals in the future.
The proposed fee hike for skilled worker visas would represent a significant increase from the current $215 fee.
India’s Ministry of External Affairs expressed concerns about the visa plan potentially disrupting families, particularly affecting the large number of Indian H-1B visa holders. More than 70% of H-1B visa holders are from India, and these visas require at least a bachelor’s degree.
Critics argue that the H-1B program undercuts American workers by hiring overseas individuals willing to accept lower salaries than U.S. tech workers typically earn.
Trump claimed that the tech industry supports the move, while Lutnick stated that major companies are in agreement.
Representatives of leading tech firms like Amazon, Apple, Google, and Meta did not immediately respond to requests for comments, except for Microsoft, which declined to comment.
The U.S. Chamber of Commerce expressed concerns about the impact on employees, families, and American employers, highlighting the need to understand the full implications and find the best path forward.
Lutnick predicted that the changes would lead to a significant reduction in H-1B visas issued, as the new fees would make it economically unfeasible for many companies.
Additionally, Trump announced plans to offer a gold-card visa with a pathway to U.S. citizenship for $1 million after vetting, while companies would need to pay $2 million to sponsor an employee.
A Trump platinum card, available for $5 million, would allow extended stays in the U.S. without incurring taxes on non-U.S. income. These new visa options would replace existing employment-based visas offering routes to citizenship.
Critics of the H-1B program praised the proposed changes, viewing them as a step towards addressing program abuses.
The move to increase the visa fee was described as a method to acknowledge and rectify issues within the H-1B program, deviating from the usual approach of raising foreign workers’ salaries to discourage their substitution for higher-paid American workers.
The proclamation also directs the U.S. Labor Department to revise prevailing wage levels under the visa program. Critics of the H-1B program have advocated for replacing the lottery system with an auction for companies seeking to employ foreign workers.
Melania Trump, the wife of President Trump, received an H-1B work visa in 1996 to work as a model, illustrating a personal connection to the immigration issue.