Confusion spread among Indian professionals after President Trump announced a new $100,000 fee on H-1B visas. Many feared that those currently outside the United States would have to rush back before the deadline to avoid paying the hefty amount.
A U.S. official later addressed these concerns and said, “Indians on H1B visas do not need to rush back to America by Sunday or pay $100,000 to re-enter the country.”
Clarification on the New Fee
The official stressed that the fee applies “ONLY to new visa petitions and not to renewals.” This means that existing H-1B holders do not face the charge when re-entering the U.S.
As panic grew, the White House released a three-point statement on Saturday. Spokesperson Karoline Leavitt explained the policy in detail on X:
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“This is NOT an annual fee. It’s a one-time fee that applies only to the petition.”
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“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.”
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“This applies only to new visas, not renewals, and not current visa holders. It will first apply in the next upcoming lottery cycle.”
This clarification makes it clear that H-1B workers abroad do not need to immediately return to the U.S., as their existing visas remain valid without extra charges.
Relief for Indian Tech Professionals
The announcement came as a relief to thousands of Indian technology workers who were worried after companies such as Microsoft, Amazon, Meta, and JP Morgan issued urgent notices. These firms had earlier advised employees and their families abroad to return before the September 21 deadline, warning that they could be stranded otherwise.
India, the largest user of the H-1B programme, is expected to feel the impact of the new rules. The country’s IT sector depends heavily on these visas for skilled professionals. Commenting on the issue, Indian external affairs ministry spokesperson Randhir Jaiswal said, “This measure is likely to have humanitarian consequences by way of the disruption caused for families.”
What is the H-1B Visa?
The H-1B visa allows U.S. companies to hire foreign workers with specialized skills, usually for three years, with the option of extending it for another three years.
The Trump administration’s proclamation introduced a $100,000 application fee for H-1B visas. According to Commerce Secretary Howard Lutnick, this would mean a total of $300,000 over three years. Currently, companies pay between $2,000 and $5,000 for each H-1B sponsorship.
Recent U.S. Citizenship and Immigration Services (USCIS) data shows that Indians account for about 71% of all approved H-1B applications.
Also Read: Amazon Advises H-1B and H-4 Visa Holders to Stay in US Amid Trump’s $100,000 Fee Rule
Trump’s Stand on the Visa Programme
In his proclamation, President Trump argued that the H-1B system was being abused. He said the programme was created to bring in “temporary workers into the US to perform additive, high-skilled functions, but it has been deliberately exploited to replace, rather than supplement, American workers with lower-paid, lower-skilled labour.”
He further claimed, “The large-scale replacement of American workers through systemic abuse of the program has undermined both our economic and national security.”
According to Trump, some companies use loopholes in the visa system to suppress wages, creating a “disadvantageous labour market” for U.S. citizens.