US Gov’s $100K Fee For H-1B Visas, How Are Firms, Markets & Workers Affected?

U.S. President Donald Trump shook the world a few days ago when his administration announced a new fee hike in H-1B visas.

H-1B visas are one of the most in-demand work visas available for people from outside the U.S. looking to work in the United States. These non-immigrant visas allow American companies access to global talent, especially in specialty occupations that require specialized knowledge, offering them temporary employment.

Due to its high demand and a limited annual limit on the number of H-1B approvals, the U.S. has a lottery system in place, which randomly selects petitions to be processed. The visa’s cap is set at 65,000 per fiscal year, where an additional 20,000 visas can be granted to graduates with advanced U.S. degrees.

Once selected, employers are required to pay a fee to bring such candidates into the country or allow students to stay after graduation. H-1B visas are typically granted for three years but can be extended for a maximum of 6 years. Additionally, holders of such visas can try to immigrate permanently to the country.

This is where the new developments come in.

What consisted of a few thousand dollars—ranging from $1,700 to $4,500—along with a $215 registration fee, was suddenly propelled to $100,000 per year.

At least, that’s what was first announced by U.S. Secretary of Commerce, Howard Lutnick, who pronounced that President Trump's $100,000 H-1B visa fee will be annual. This message was also shared widely on social media, with some edits showing he confirmed the cost five times in a row.

However, there was a clarification that was quickly issued by Karoline Leavitt, Assistant to the President and White House Press Secretary, who essentially rolled back the $100,000 annual payment proclamation, replacing it with a one-time payment of $100,000 for fresh applications.

Leavitt posted on X, saying, “To be clear:

1.) This is NOT an annual fee. It’s a one-time fee that applies only to the petition.

2.) 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.

3.) This applies only to new visas, not renewals, and not current visa holders.

It will first apply in the next upcoming lottery cycle.


However, before the clarification was conveyed, the world went into a tizzy, where companies lost market value from dropping share prices, both existing and aspiring H-1B visa holders fretted about their employment opportunities, and global markets reflected an uncertain future.

One of the largest groups affected by the H-1B revamp would be technology companies and their employees. This includes STEM (science, technology, engineering, and mathematics) industries, where around 66% of H-1B jobs are found in computer-related roles.

The announcement sparked numerous concerns, as businesses began calling back employees who had traveled out of the country to return to the country before a deadline of 12:01 a.m. EDT on Sunday (0401 GMT)—Microsoft issued a 24-hour deadline for employees outside the U.S.—and also advised them not to leave the country for the foreseeable future.

While this was before the clarification was issued, the move resulted in panic among workers, as they scrambled to purchase return tickets and cancel travel plans.

As per the United States Citizenship and Immigration Services, the top companies with the greatest number of H-1B visa holders include Amazon, Microsoft, Meta, Apple, and Google, clinching the top 6 spots.

The second place is held by Tata Consultancy Services (TCS), which hails from India, one of the most affected countries that witnesses a large number of H-1B visa applicants and beneficiaries.


As per reports, India alone accounted for 71% of H-1B beneficiaries, with China following with 11.7%.

Indian IT companies’ stocks were also hit, with TCS, Infosys, Wipro, HCL America, Tech Mahindra, and others dropping market value, which totaled a loss of $10 billion. It marked its worst day in almost six months.

This came despite Indian IT companies reducing their reliance on H-1B visas since President Trump’s first term.

On the flip side, numerous Indian leaders countered the fee increase by advising H-1B applicants to return to the country and prioritize building India’s economy over the United States’.

“I thought my H-1B & Green Card was success. Turns out, giving it up was If you can, come back home & build,” said Anupam Mittal, Founder and CEO of Shaadi.com.

Even U.S. leaders outlined a silver lining by pointing out that the move for additional payments for new applicants could be offset by hiring workers who were laid off by technology companies such as Microsoft, Oracle, Intel, AWS, and others.

“Some of the ones laid off might be getting a call back,” said Navneet S. Chugh, attorney at US-based immigration law firm Chugh LLC.

What do you think about the new rules established by the U.S. Government for H-1B visas?

Let us know in the comments below!