SAN FRANCISCO/WASHINGTON:
The Trump administration’s new $100,000 annual fee for H-1B visas in the United States goes into effect Sunday, prompting some big tech companies to warn visa holders to stay in the US or quickly return.
The change could deal a big blow to the technology sector that relies heavily on skilled workers from India and China. Since taking office in January, Trump has kicked off a wide-ranging immigration crackdown, including moves to limit some forms of legal immigration.
The White House issued a major clarification Saturday to its new H-1B visa policy that had rattled the tech industry a day earlier, saying a $100,000 fee will be a “one-time” payment imposed only on new applicants.
US Commerce Secretary Howard Lutnick had repeatedly said on Friday that the fee would be applied annually, but a White House official said Saturday it is “a one-time fee that applies only to the petition.”
“It ONLY applies to new visas, not renewals or current visa holders,” the official said on condition of anonymity, after the text of the executive order left many current visa-holders confused about whether it applied to them.
The executive order, which is likely to face legal challenges, comes into force Sunday at 12:01 am (0401 GMT), or 9:01 pm Saturday on the Pacific Coast.
The step to reshape the H-1B visa program represents his administration’s most high-profile effort yet to rework temporary employment visas.
“If you’re going to train somebody, you’re going to train one of the recent graduates from one of the great universities across our land,” said Commerce Secretary Howard Lutnick. Train Americans. Stop bringing in people to take our jobs.”
The new rules will not be applied to existing holders of valid visas re-entering the country, Axios reported on Saturday. The executive order imposing the new fee on H-1B visa applications, which was signed by President Donald Trump Friday night, could disrupt the global operations of Indian technology services companies that deploy skilled professionals to the United States, Indian IT industry body Nasscom said early on Saturday.
The White House clarified that the fee will not impact current visa holders re-entering the country or those renewing their visas, the Axios report said. The new fee structure will first apply to the upcoming H-1B lottery cycle for new applicants, Axios reported.
Microsoft, JPMorgan and Amazon responded to the announcement by advising employees holding H-1B visas to remain in the United States, according to internal emails reviewed by Reuters.
They advised employees on the H-1B visas who were outside the US to return before midnight on Saturday (0400 GMT on Sunday), when the new fee structures are set to take effect.
“H-1B visa holders who are currently in the US should remain in the US and avoid international travel until the government issues clear travel guidance,” read an email sent to JPMorgan employees by Ogletree Deakins, a company that handles visa applications for the US investment bank.
Microsoft, JPMorgan, law firm Ogletree Deakins, which represents the bank on the issue, and Amazon did not immediately respond to Reuters requests for comment.
Critics of the H-1B program, including many U.S. technology workers, argue that it allows firms to suppress wages and sideline Americans who could do the jobs. Supporters, including Tesla CEO and former Trump ally Elon Musk, say it brings in highly skilled workers essential to filling talent gaps and keeping firms competitive.
Musk, himself a naturalised US citizen born in South Africa, has held an H-1B visa. Some employers have exploited the program to hold down wages, disadvantaging US workers, according to the executive order Trump signed on Friday.
The number of foreign science, technology, engineering and mathematics (STEM) workers in the US more than doubled between 2000 and 2019 to nearly 2.5 million, even as overall STEM employment only increased 44.5% during that time, it said.
India’s leading IT trade body said on Saturday it was concerned by the new annual fee.
India’s External Affairs Ministry said the new measure, which will likely face legal challenges, would cause “disruption” for the families of H-1B visa holders.
Such visas allow companies to sponsor foreign workers with specialised skills — such as scientists, engineers, and computer programmers — to work in the United States, initially for three years but extendable to six.
The United States awards 85,000 H-1B visas per year on a lottery system, with India accounting for around three-quarters of the recipients.
India’s top IT industry body Nasscom said the new measure would hit “business continuity” and was also concerned by the short timeline, with the new fee coming into effect on Sunday.
“A one-day deadline creates considerable uncertainty for businesses, professionals, and students across the world,” Nasscom said in a statement.
“Policy changes of this scale are best introduced with adequate transition periods, allowing organisations and individuals to plan effectively and minimise disruption,” it said.
Trump announced the change in Washington on Friday, along with the introduction of a $1 million “gold card” residency programme he had previewed months earlier.
“The main thing is, we’re going to have great people coming in, and they’re going to be paying,” Trump told reporters as he signed the orders in the Oval Office.
India’s foreign ministry said the mobility of skilled talent had contributed to “technology development, innovation, economic growth, competitiveness and wealth creation” in both countries and that it would assess the changes.
It said in a statement the new measure would likely have “humanitarian consequences by way of the disruption caused for families”, which it hoped would be addressed by US authorities.
