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In a move that blindsided the tech industry and foreign governments, President Donald Trump’s administration unleashed a bombshell immigration policy late Friday, slapping a staggering $100,000 fee on new H-1B visa applications for skilled foreign workers.
The proclamation, signed on September 19, triggered 24 hours of pandemonium as visa holders worldwide abandoned trips and rushed back to the U.S., fearing permanent lockout.
Tech giants issued frantic travel bans, while allies like India decried “humanitarian consequences.”
Though the White House scrambled to clarify the fee as a one-time charge for new petitions only—sparing existing holders—the fallout has already reshaped global talent pipelines and drawn fire from AI leaders like Nvidia’s Jensen Huang and OpenAI’s Sam Altman.
The executive action, dubbed “Restriction on Entry of Certain Nonimmigrant Workers,” targets the H-1B program, a cornerstone of U.S. tech hiring since 1990 under President George H.W. Bush.
Major firms like Amazon, Meta, Google, Apple, and Walmart rely on it to import talent in fields like software engineering and data science, with fees previously hovering between $2,000 and $5,000 per application.
Trump framed the hike as a “commonsense” fix to curb abuses, telling reporters Friday: “I think they’re going to be very happy. Everyone’s going to be happy.”
White House spokeswoman Taylor Rogers echoed the sentiment to CNBC, arguing it “discourages companies from spamming the system and driving down wages” while providing “certainty to American businesses.”
Commerce Secretary Howard Lutnick initially described it as an annual $100,000 per worker, amplifying fears of recurring costs that could cripple smaller firms.
The policy takes effect Sunday, September 21, applying to petitions filed on or after that date.
Per the White House’s official fact sheet, it’s a one-time levy per petition, exempting renewals and current visa holders—including those abroad.
Case-by-case waivers may apply, potentially sparing critical sectors like healthcare.
| Top H-1B Visa Beneficiaries (FY 2024 Data) | Share of Approvals | Key Impacts from New Fee |
|---|---|---|
| India | 71% | IT firms like Infosys face hiring crunch; stocks dipped 2-3% post-announcement |
| China | 11.7% | Tech transfers to U.S. firms at risk amid trade tensions |
| Other (Canada, South Korea, etc.) | 17.3% | Startups warn of talent flight to Europe or Asia |
24 Hours of Frenzy
The announcement’s vagueness—failing to specify if it hit renewals or existing visas—sparked worst-case scenarios.
From Bengaluru boardrooms to London family gatherings, H-1B holders packed bags and booked flights, stranding loved ones and derailing business deals.
- Corporate Alerts: Microsoft, Amazon, and Goldman Sachs fired off emails urging employees: “Do not leave the U.S.” until clarified. One North Carolina engineer, Rohan Singh, scrapped a long-planned India trip amid “panic among H-1B visa holders,” telling Reuters: “We don’t know what’s ahead.”
- Global Echoes: Stories flooded platforms like Rednote (TikTok’s Chinese counterpart), with users recounting mid-trip U-turns. South Korea, stung by a September 4 immigration raid on a Hyundai plant in Georgia, vowed close monitoring.
- X Erupts: Posts captured raw fear and fury. One user lamented: “Trump was saying he was accomplishing much but… lied to us about… H1B.” Another hailed it as a win for U.S. truckers and manufacturers: “Fantastic!!! Thanks Pres. Trump.” Indian voices raged: “‘Totally unacceptable’: Indians rage over Trump’s $100,000 fee.”
India’s government, resuming trade talks amid U.S. tariffs, warned of family disruptions and is “studying full implications.”
Critics like Aaron Reichlin-Melnick of the American Immigration Council blasted the rollout on X: “When the government announces a major new policy… AT THE VERY LEAST it owes people precise information.”
White House Backpedals
Saturday’s clarifications arrived via X and a rapid-response fact sheet: “The Proclamation does not apply to anyone who has a current visa.”
Spokesperson Karoline Leavitt emphasized it’s “not an annual fee, only a one-time fee that applied to each petition.”
Employers still face no changes for renewals, though legal experts note the “plain language” could snag post-September 21 filings.
The White House ignored overnight NBC queries but touted revenue potential: With 85,000 annual H-1Bs, it could generate billions while prioritizing “high-value talent.”
Tech Titans and Economists Sound Alarm
Even with clarifications, the damage lingers.
Fortune reports the fee as a “new obstacle for U.S. startups” in the AI arms race, rattling Silicon Valley’s hiring machine.
Nvidia CEO Jensen Huang told CNBC: “We represent the American Dream,” pleading for access to global minds.
OpenAI’s Sam Altman added: “We need to get the smartest people in the country.”
Economists warn of broader harm.
The Guardian cites fears the fee “could hurt US economic growth,” driving talent to competitors like Europe or China.
The Niskanen Center’s Gil DeGuerra predicts “medium- and long-term labor shortages,” threatening the “international talent pipeline that has powered U.S. innovation for decades.”
Fox Business echoes business leaders: It “could hurt innovation, drive talent out of US.”
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