US Imposes $100,000 Fee on H-1B Visas

Prompting Tech Companies to Advise Employees’ Immediate Return

The US administration has implemented a new rule imposing a $100,000 annual fee on H-1B visas, effective September 21. This move has prompted major tech firms, including Microsoft and JPMorgan, to advise their H-1B and H-4 visa-holding employees currently outside the US to return immediately to avoid the new fee.

The new rule, announced by President Donald Trump, is set to be in effect for 12 months. Trump stated that the fee-based visa program is expected to generate over $100 billion for the US Treasury, with funds allocated for national debt reduction and tax cuts.

In response, companies like Microsoft and JPMorgan are reportedly instructing their H-1B employees within the US to avoid international travel for the time being. Microsoft has also advised H-4 visa holders to remain in the country, with reports stating the company “strongly recommend[s] H-1B and H-4 visa holders return to the US tomorrow before the deadline.” There have been no official statements from either company. The new fee is expected to significantly increase the cost for companies to retain foreign professionals, particularly given that a typical H-1B visa is valid for three years and can be renewed for up to six. This could be especially burdensome for Indian professionals, who make up approximately 71% of H-1B visa holders. These professionals primarily work for major technology companies, including Infosys, Wipro, and Tata Consultancy Services. Following the announcement, shares of US-listed Indian IT firms and other major tech service companies dropped by 2% to 5%, reflecting investor concern over the potential impact on talent mobility and operational costs. The H-1B program is a critical pathway for US companies to hire skilled foreign workers in specialized fields such as technology and engineering.

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