On September 20, 2025, the White House moved to address widespread concerns over President Donald Trump’s new H-1B visa policy, confirming that the $100,000 fee applies solely to new applications and not to existing visa holders or renewals. This clarification follows the September 19 proclamation, effective as of 12:01 a.m. EDT on September 21, which had sparked alarm among tech giants like Amazon and Microsoft, prompting urgent advisories for employees abroad to return immediately.
White House Press Secretary Karoline Leavitt took to X to clarify that the fee is a one-time charge, not an annual as suggested during the policy’s unveiling by Commerce Secretary Howard Lutnick. “The $100K H-1B fee is one-time for new applications only, not renewals or travel for current holders,” Leavitt posted, aligning with a U.S. Citizenship and Immigration Services (USCIS) memo. The memo specifies that the fee does not apply to petitions filed before September 21, already approved visas, or those maintaining valid status.
Titled “Restriction on Entry of Certain Nonimmigrant Workers,” the proclamation mandates that employers pay $100,000 per new H-1B petition for workers outside the U.S. before October 1, 2026. The policy aims to prioritize American workers by discouraging reliance on foreign labor, particularly in outsourcing-heavy sectors. Immigration experts, including Aaron Reichlin-Melnick from the American Immigration Council, argue the fee exceeds legal limits, as it far surpasses administrative processing costs.
Key Details and Impacts
| Aspect | Details | Impact |
|---|---|---|
| Existing Holders | No fees for travel or status maintenance. | Protects ~500,000 H-1B workers, predominantly Indian (71% of approvals). |
| Renewals/Extensions | Standard fees apply; no new charges. | Reduces financial strain on firms like TCS, initially fearing $500M+ yearly costs. |
| New Applicants | $100K one-time fee for FY2026 lottery (starting Feb 2026). | May cut approvals by half, redirecting talent to Canada or Europe; stocks stabilized after 2-5% drops. |
| Policy Duration | Set to expire in 12 months unless extended. | Temporary measure amid Trump’s “America First” agenda. |
The clarification eased initial panic, with companies like Amazon urging H-1B employees abroad to return before Sunday’s deadline. Shares of H-1B-reliant firms like Cognizant, which dipped nearly 5% on Friday, saw partial recovery. The policy retains the 85,000 annual visa cap and lottery system but emphasizes higher-wage roles.
While supporters praise the move as safeguarding U.S. jobs, critics warn it could stifle innovation, particularly impacting India, which secures over 60,000 H-1B visas annually and relies on $20-25 billion in remittances. As USCIS finalizes details, legal challenges loom, and companies are advised to expedite renewals. The policy’s scope has narrowed, but its ripple effects continue to stir debate.
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