Washington, DC: A day after President Donald Trump signed a proclamation imposing a hefty $100,000 fee on new H1B visa applications, confusion swept across Indian tech workers and global companies. Many feared this fee would become an annual financial burden for visa holders.
However, the White House has now moved quickly to ease concerns. Press Secretary Karoline Leavitt confirmed that the fee is not annual, but rather a one-time payment linked only to new petitions.
H1B Visa Clarification
Leavitt further clarified that the charge will not apply to renewals or to current visa holders already living and working in the United States. “This fee applies only to new visas, not renewals, and not current visa holders,” she emphasized in a post on X.
The announcement directly contradicted earlier remarks from US Commerce Secretary Howard Lutnick, who had mistakenly suggested the fee would apply annually. The clarification brought some relief but did not end all worries among Indian professionals.
Lottery Cycle Impact
According to the statement, the new fee will first be levied in the next H1B lottery cycle. This means applicants selected in the 2025 lottery, whose visas take effect from October 1, will not need to pay.
The policy, which became effective Sunday, is currently valid for one year but could be extended depending on the administration’s review. Exemptions may also be considered in national interest cases, giving room for flexibility.
Concerns Remain Strong
Indian workers, who make up over 71% of H1B visas, remain deeply unsettled by the move. India’s Ministry of External Affairs has already raised concerns about the “humanitarian consequences,” particularly the family disruptions that may follow stricter visa rules and higher costs.
Tech giants including Microsoft, Amazon, JPMorgan, and Goldman Sachs have urged employees on H-1B visas to avoid international travel, fearing unexpected complications in re-entry.
Cost Burden Grows
Until now, an H1B visa applicant paid $215, while employers contributed an additional $780. The sudden jump to a $100,000 one-time fee represents a massive cost escalation that could reshape how companies approach hiring foreign talent.
The policy has also triggered discussions on whether US companies might cut back on H-1B hiring or pass these costs onto employees, impacting India’s skilled IT workforce most heavily.
What is H1B Visa
The H1B visa is a temporary work permit that allows US companies to hire highly skilled foreign professionals, especially in areas such as technology, engineering, finance, and research. It has long been a gateway for Indian engineers and IT experts to work with leading American firms.
Every year, thousands of applications are submitted for the limited visa slots, which are allocated through a lottery system. For Indian families, the H1B program represents both an opportunity for career growth and a pathway to life in the US, making policy changes highly sensitive.
For now, the White House’s clarification has reduced panic, but uncertainties remain about how the new rules will evolve. Industry leaders warn that unless further clarity is provided, the US risks losing talent to other countries with more welcoming visa policies.
