Late Friday, President Donald Trump threw a major bombshell into the tech and finance sectors by revealing plans to impose a staggering $100,000 fee on new H-1B visa applications. This move could seriously impact firms that rely on skilled foreign workers, especially in technology and finance.
According to a White House official, this fee only pertains to new H-1B applicants and will not affect those already holding visas or those renewing them. The change will kick in during the next lottery cycle, starting with applications in the near future, while the winners of the 2025 lottery are exempt from this fee.
The tech giants and major financial institutions are in an uproar. Companies like Amazon, who employed over 14,000 H-1B holders by the end of June, are taking immediate action. Reports indicate that Amazon’s immigration team has advised its H-1B and H-4 visa holders to stay in the U.S., with instructions for workers outside the country to return prior to the cutoff at 12:01 a.m. ET on September 21.
- JPMorgan Chase also sent out reminders urging their H-1B visa holders to remain in the U.S. and to refrain from traveling internationally until further notice, as per memos shown to insider colleagues.
- Goldman Sachs has similarly directed its employees with H-1B visas to tread carefully while traveling internationally and to heed the guidance from their immigration services firm.
- Microsoft has reported advising their visa holders to stick around domestic lands and for those overseas to get back quickly, hinting that venturing abroad could put their immigration status at risk.
This hefty fee is the Trump’s administration’s latest step in tightening immigration laws, targeting employment visas significantly. Since assuming office in January, Trump has pursued a sweeping policy overhaul aimed at both illegal and legal immigration. This marks a pronounced shift toward stricter measures affecting skilled worker visas.
As already indicated, Amazon is the highest employer of H-1B visa holders, while giants like Microsoft, Meta, Apple, and Google all sit comfortably within the top spots among recipients for the upcoming fiscal year 2025.
Attempts to comment from these top companies have mostly yielded silence. The White House has also been unresponsive regarding inquiries about their stance on this controversial decision.
As Taylor Rogers, a spokesperson for the White House described, “This commonsense action serves to prioritize U.S. employment by dissuading businesses from overly relying on H-1B visas in a way that undermines American wages. It aims to provide assurance to those American companies truly seeking to hire high-skilled talent while controlling potential excesses of the system.”
What’s the Global Impact?
This announcement has also triggered concerns globally, urging foreign governments to consider its ramifications.
India’s Ministry of External Affairs has taken note, stressing the significance of these visa changes while acknowledging mutual interests in maintaining industrial competitiveness between both nations. They have highlighted the potential family disruptions stemming from these new regulations.
The statement from India’s Ministry stressed, “This measure stands to create humanitarian challenges, particularly concerning families. We hope these issues can be effectively addressed by U.S. authorities.”
Similarly, South Korea’s foreign ministry is investigating how these new rules may impact their businesses and skilled workers.
Information for this report was provided by CNBC’s Annie Palmer.
