A senior White House official told Axios that a new $100,000 annual fee for H-1B visas will take effect Sunday, but it will not apply to current valid visa holders returning to the United States.
According to the report, President Donald Trump signed an executive order late Friday requiring every H-1B visa holder — or their sponsoring company — to pay this annual fee. While some lawyers initially believed the fee would apply immediately to all visa holders, the White House clarified that the new cost will only affect new applicants, not those with existing visas or renewals.
Impact on U.S. Employers
The new rule could bring a massive financial burden to companies that rely heavily on H-1B workers, particularly tech giants such as Microsoft, Amazon, and outsourcing firms like Cognizant. For these corporations, the additional cost could exceed $1 billion annually.
The order also gives Homeland Security Secretary Kristi Noem the authority to exempt individuals, companies, or even entire industries from the fees if deemed necessary.
Confusion and Travel Concerns
The executive order is set to take effect at 12:01 a.m. ET on Sunday. Immigration lawyers warned their clients on Friday to re-enter the U.S. before the deadline, fearing that even existing H-1B visa holders abroad might be affected.
Immigration attorney Douglas Russo advised on LinkedIn:“If you’re an H-1B worker outside the United States with a valid visa, the safest approach is to re-enter before Sunday.”
However, White House officials reassured Axios that the measure only applies to new lottery applicants in the upcoming cycle, not to those who already hold valid visas. Still, uncertainty remains about whether current visa holders may face complications while traveling after the rule goes into effect.
A Divisive Immigration Policy
While Trump’s border crackdown has drawn the most attention, his approach to high-skilled worker visas has been equally controversial.
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MAGA allies like Steve Bannon argue that U.S. employers exploit the H-1B program to import cheaper foreign labor, undercutting American workers.
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Tech leaders in Silicon Valley, however, contend that H-1B visas are vital for attracting the world’s top talent to the United States.
White House spokesperson Taylor Rogers defended the decision:“President Trump promised to put American workers first. This measure discourages companies from abusing the system and driving down wages, while giving confidence to U.S. businesses that genuinely need skilled talent.”