President Donald Trump’s recent immigration policy overhaul has created confusion among immigrant workers, prompting the White House to clarify that a newly imposed $100,000 fee on H-1B visas, which cater to skilled tech workers, is applicable only to new applicants and not to current visa holders. This change was announced on Friday when Trump signed a proclamation alongside Commerce Secretary Howard Lutnick.
In a bid to ease concerns, White House press secretary Karoline Leavitt took to social media to affirm that individuals who already hold H-1B visas and are currently outside the United States would not face the new fee upon re-entry. She emphasized that the fee, effective immediately, would only apply to new visa applications and not to renewals.
While the fee is set to expire after one year, it may be extended if deemed beneficial for the U.S. The announcement also reassured that the new rule would not affect the travel capabilities of existing visa holders. However, immigration attorneys expressed that the sudden nature of these changes could disrupt the lives of many skilled workers, potentially affecting business operations across the nation. Kathleen Campbell Walker, an immigration attorney based in Texas, highlighted the chaos within the existing H-1B visa process, stressing that stakeholders had little notice of such significant alterations.
Lutnick had initially characterized the fee as an annual cost for companies, but later, a White House official clarified that it was, in fact, a one-time fee. The ambiguity surrounding this point raised further concerns within the business community. India’s government has voiced its apprehension regarding the elevated costs associated with visas that facilitate the entry of tech workers from India and other nations, noting that the plan would have humanitarian ramifications, especially for families.
With over 70% of H-1B visa holders coming from India, the Indian Ministry of External Affairs is keenly observing Trump’s immigration strategy. Critics of the H-1B program have long argued that it undermines American employment opportunities by allowing foreign workers to fill roles at significantly lower salaries compared to their American counterparts. The visa program, which is geared towards high-skilled positions, requires at least a bachelor’s degree for applicants, and allegations persist that it inadvertently favors entry-level work.
Trump asserted that the tech industry would support the policy shift, and Lutnick echoed this sentiment, claiming that major companies were in agreement. However, representatives from leading tech firms, including Amazon, Apple, Google, and Microsoft, have not publicly commented on the changes thus far.
The U.S. Chamber of Commerce has expressed its concerns regarding the ramifications of the fee increase for employees and American businesses, stating its intention to engage with the administration for clarity on the implications of the new policy. Lutnick suggested that the new fee might significantly decrease the number of H-1B visas granted, as the financial burden may deter companies from applying.
In conjunction with the visa fee announcement, Trump introduced a “gold card” visa aimed at wealthy individuals, offering a pathway to U.S. citizenship for a $1 million fee. Additionally, a “Trump Platinum Card” priced at $5 million will allow its holders to spend extended time in the U.S. without being subject to taxation on non-U.S. income, though legislative approval will be required for this card.
Critics of the H-1B program have welcomed these changes, viewing them as a step toward abolishing the visas altogether. Selected by lottery, H-1B visas have often been criticized for being awarded to roles that do not meet the original intent of filling highly specialized positions, with numerous applications submitted for basic tech industry tasks.
As the debate continues, many are left questioning the practical implications of these rapid changes in immigration policy and their long-term effects on both immigrant workers and American businesses.
