The White House was forced to clarify on Saturday that a $100,000 fee on H1-B visas for skilled tech workers only applies to new applicants and not to current visa holders after US President Donald Trump’s signing an executive order to overhaul the country’s immigration system confused immigrant workers.
With Commerce Secretary Howard Lutnick at his side, the president signed the order on Friday that will mandate the higher cost for H-1B visas, which are intended for highly skilled positions that IT companies struggle to fill.
“Those who already hold H-1B visas and are currently outside of the country right now will NOT be charged $100,000 to re-enter. This applies only to new visas, not renewals, and not current visa holders,” White House press secretary Karoline Leavitt said in a post on X.
“The fee takes effect at 12:01 a.m. ET Sunday. It is scheduled to expire after a year. But it could be extended if the government determines that is in the interest of the United States to keep it.
However, immigration lawyers stated that the decision has a significant impact on American companies and could potentially upend the lives of many skilled workers.
The White House move “inserts total chaos in existing H-1B process with basically a day’s notice, said Kathleen Campbell Walker, an immigration lawyer at Dickinson Wright located in El Paso, Texas in a LinkedIn post.
On Friday, Lutnick told reporters that the levy will be a yearly fee for companies.
However, a White House official said on Saturday that the cost is “one-time.” The official, who spoke on condition of anonymity, responded that the additional fee “currently does not apply to renewals but that policy is under discussion” when asked if Lutnick’s comment caused confusion.
Meanwhile, the Indian government voiced concerns on Saturday that the Trump administration’s action would significantly increase the cost of visas that allow IT professionals from India and other nations to enter the US.
Trump also introduced a $1 million “gold card” visa for affluent people. Despite significant criticism that he is side-stepping the Congress, the actions are likely to face legal challenges.
Without doubt, the action will result in huge price increases if they pass legal test. The skilled worker visa fee would increase from $215.
Trump’s plan, “was being studied by all concerned, including by Indian industry,” India’s Ministry of External Affairs said on Saturday. It cautioned that the measure is likely to have “humanitarian consequences” due to the disruption caused for families. The government anticipates that US authorities will be able to appropriately handle the disruptions.
India accounts for more than 70 percent of H-1B visa holders.
H-1B visas are intended for high-skilled positions that tech companies struggle to fill, and they require at least a bachelor’s degree. Critics claim that by attracting foreign workers who are frequently prepared to work for as little as $60,000 per year, the program undercuts American wages. That is far less than the average salary of over $100,000 for technology workers in the US.
Trump stated on Friday that the tech sector would not object to the action. Meanwhile, Lutnick asserted that “all big companies” are on board.
Messages for comment were not immediately answered by representatives of the largest tech companies, including Amazon, Apple, Google, and Meta. Microsoft declined to comment on the matter.