Briefing at a Glance

  • U.S. President Donald Trump announced on Friday that the government will require an additional payment of$100,000 feewhen submitting H-1B visa applications—a visa that tech industry and cross-industry HR leaders have usedto attract top talent globally, according to the presidential proclamation.
  • A fact sheet released by U.S. Citizenship and Immigration Services (USCIS) on Sunday stated that the proclamation "takes an important, initial, incremental step toreform the H-1B visa program, curb abuse, and protect U.S. workers."
  • The move left some employers scrambling to assess the impact, and according to The Seattle Times, includingtech giants like Microsoft sent emails to employees on H-1B visas on Friday, asking them to return to the U.S., and immigration lawyers urged visa holders to return as soon as possible. Microsoft declined to comment on the reports or the new fee on Monday.

In-Depth Analysis

The new H-1B fee adds extra pressure on employers, whiletensions over deportation and immigration issuesand their impact on the labor market have become a focal point in Trump's second term.

White House Press Secretary Karoline Leavitt on Saturday sought to clarify details of the new fee. Although the proclamation stated the effective date was Sunday at 12:01 a.m. Eastern Time, Leavitt posted on social media platform X that the fee applies only to new visas, not renewals, is a one-time fee rather than an annual one, and that those already holding H-1B visas do not need to pay $100,000 to re-enter the U.S.

"H-1B visa holders can leave the countryand re-enter as usual; their ability to do so is not affected by yesterday's proclamation," Leavitt wrote.

USCIS's H-1B FAQ also provides more details on the implementation of the new fee, noting that the agencyhas provided guidance, and that the proclamation does not prevent any current H-1B visa holders from entering or leaving the U.S. The document also notes that further measures to reform the H-1B program are in the works, including rulemaking by the Department of Labor "to revise and increase prevailing wage levels to improve the quality of the H-1B program, ensuring it is used only to hire the best temporary foreign workers."

The H-1B program has been a source offierce debateamong Trump's key supporters. Former co-lead of the Department of Government Efficiency (DOGE) Elon Musk and Vivek Ramaswamy havepublicly expressed support, while some conservatives, including former South Carolina Governor and former presidential candidateNikki Haley, oppose hiring foreign workers.

In July of this year, Microsoft—which has been at the center of controversy over the tech industry's use of the H-1B visa program—dismissed criticism linking its recent layoffs to reliance on foreign worker visas, sayingthe two are unrelated. Intuit CFO Sandeep Aujla, in a January interview with CFO Dive,expressed support for the H-1B visa program, opposing protectionist views of the tech labor market and warning against moving toward isolationism.

In the proclamation, Trump took direct aim at tech companies. "Information technology (IT) companies in particular have prominently manipulated the H-1B system, severely harming U.S. workers in computer-related fields. IT workers' share of the H-1B program rose from 32% in fiscal year 2003 to an average of over 65% over the past five fiscal years," he wrote, calling the "abuse" of the H-1B program a national security threat.

Editor's note: This article has been corrected to reflect that the fact sheet cited was released by U.S. Citizenship and Immigration Services.