【By Observer News, Wang Kaiwen】On September 19 local time, US President Trump signed a proclamation to significantly increase the fees paid by companies for H-1B visa applicants to $100,000.

The sudden announcement of the new policy immediately caused confusion. Companies such as Amazon and Microsoft urged employees abroad to return to the US urgently. The White House said on the 20th that the new fee would only apply to new applicants, and those who already hold H-1B visas or are renewing them would not be affected.

Analysts pointed out that changes in H-1B visa rules could have a heavy impact on the American technology industry, which heavily relies on foreign technical workers.

It is worth noting that over 70% of H-1B visa holders come from India. The Indian government warned on the 20th that this move by the US would lead to "humanitarian consequences" and hoped that the Trump administration would handle the issue properly.

"Don't let foreigners take our jobs"

Since his re-election in January this year, Trump has launched a wide-ranging campaign against immigration, including limiting certain forms of legal immigration. Reuters called this adjustment of the H-1B visa program the most notable action taken by the administration so far regarding employment visas.

"We need workers. We need excellent workers, and this almost ensures the achievement of this goal," Trump told reporters at the White House on the 19th.

According to The Guardian, under the previous system, H-1B visa applicants only had to pay a small fee to participate in the lottery, and if selected, they might pay thousands of dollars, depending on the situation. The validity period of an H-1B visa is three to six years, and almost all visa fees are paid by employers. The BBC said that after the reform, the application fees for H-1B visas could be more than 60 times the current charges.

"If you want to train someone, go train our country's top university graduates," said US Commerce Secretary Luis Gutierrez on the 19th. "Train Americans, don't bring foreigners in to take our jobs." He also claimed that the new fees "are calculated annually" and apply to both first-time applications and renewals.

On September 19, 2025, in Washington D.C., U.S. President Trump signed an executive order to greatly reform the H-1B visa program. Oriental IC

According to reports, the U.S. issues 65,000 H-1B visas annually to employers for temporary foreign employees in specific fields, in addition to 20,000 visas for applicants with advanced degrees.

In the first half of 2025 alone, Amazon received more than 10,000 H-1B visas, while Microsoft and Meta, the parent company of Facebook, each received over 5,000 H-1B visas.

AP mentioned that, geographically, California has the most H-1B visa holders.

Gutierrez claimed on the 19th that "all major companies in the U.S. have been informed of the new H-1B visa policy," saying, "We have already talked to them."

However, based on the reactions of major U.S. companies, they seem to have been caught off guard. The Financial Times reported that Trump did not specify on the 19th whether the new policy applied to existing H-1B visa holders.

Many large tech, banking, and consulting companies in the U.S., including Microsoft and JPMorgan Chase, refused to comment, while Amazon did not respond immediately to requests for comments.

Internal emails seen by Reuters showed that Microsoft, JPMorgan Chase, and Amazon advised H-1B visa holders to stay in the U.S. and, for those overseas, suggested returning to the U.S. before midnight on the 20th Eastern Time.

"Currently, H-1B visa holders in the U.S. should remain in the U.S. and avoid international travel until the government issues clear travel guidelines," wrote Ogletree Deakins, a visa affairs agency for JPMorgan Chase, in an email to employees.

Goldman Sachs stated in a memo to H-1B visa holders that they should "be cautious about international travel."

Renowned immigration law firm Fragomen advised its clients applying for H-1B visas or who have been approved to return to the U.S. by Sunday.

"We are concerned about the impact on employees, their families, and U.S. employers," said the U.S. Chamber of Commerce. "We are working with the government and member companies to understand the full impact of this measure and find the best way to respond."

"This is giving gifts to other countries"

Amidst the chaos, the White House provided some additional details about the new policy.

White House Press Secretary Karoline Leavitt confirmed on the 20th that the new fee would take effect in the next application cycle, and those who already hold H-1B visas or are renewing them would not be affected.

"Those who already hold H-1B visas and are currently abroad will not be charged $100,000 upon re-entry," Leavitt wrote on X. "H-1B visa holders can leave and re-enter the country as usual."

The Financial Times noted that Leavitt's statement differed from Gutierrez's claim of "annual charging."

White House Press Secretary Karoline Leavitt 2 video screenshot

Trump's new policy has drawn a lot of criticism. Reuters said that this change could have a heavy impact on the U.S. technology industry, which heavily relies on foreign high-skilled employees, significantly increasing corporate costs, especially affecting smaller tech companies and startups.

The Guardian reported that some American tech workers believe this move would allow companies to suppress wages and displace Americans who could otherwise fill these positions.

Analysts said that high visa fees could force companies to transfer some high-value work overseas, thus hindering America's position in the AI competition.

Partner Deedy Das of venture capital firm Menlo Ventures posted on X that increasing the new fees would "discourage attracting the world's smartest people to the U.S." "If the U.S. no longer attracts the best talent, it will greatly reduce its ability to innovate and grow economically," he said.

Y Combinator CEO Garry Tan posted on X that Trump's decision was a mistake, "killing startups," akin to "giving a big gift to overseas tech centers like Vancouver and Toronto in Canada."

Alex Tapscott, Managing Director of Canadian investment management company Ninepoint Partners, said that changes in U.S. visa policies could help Canada become the preferred destination for global talent. "The U.S. loss could be Canada's gain," he said.

Goldy Hyder, Chairman of the Canadian Business Council, said that Canada should "double its efforts" to attract the technical workers we desperately need.

"In the short term, Washington may get an unexpected windfall; but in the long run, the U.S. could lose its innovation advantage, sacrificing vitality for short-sighted protectionism," said eMarketer analyst Jeremy Goldman.

"Indian employees are most affected"

Reuters cited U.S. government data stating that Indian employees are the biggest beneficiaries of the H-1B visa, with 71% of H-1B visa approvals last year coming from India, followed by China at 11.7%.

Additionally, according to The Hindustan Times, the median salary of Indian H-1B visa holders in the U.S. is usually lower than that of their counterparts from other countries, and in most cases, the $100,000 visa fee could match or exceed the annual salary of Indian H-1B employees. Therefore, Indian employees may face the greatest impact.

The National Association of Software and Services Companies (NASSCOM) in India said that making significant adjustments to the H-1B program in such a short time brought "considerable uncertainty" for global companies, professionals, and students.

The Indian Ministry of Foreign Affairs issued a statement on the 20th, stating that it had noticed the new U.S. H-1B visa policy and that the Indian community was studying its full impact. The statement said that the new measures may interfere with Indian families, leading to "humanitarian consequences." The Indian government hopes that U.S. authorities will handle the issue properly.

The statement also said that the exchange of skilled personnel "has made great contributions," and "therefore, policymakers will consider mutual benefits when evaluating recent actions, including the strong civil ties between the two countries."

India-U.S. relations, which had experienced months of tension, recently showed signs of easing. The Indian government stated on the 20th that India's Minister of Commerce and Industry, Piyush Goyal, will visit the U.S. on September 22 for trade negotiations.

In a statement released on the 20th, the White House said that, under the premise of "national interest," individual H-1B visa applications would be exempt from the $100,000 fee.

According to reports, Trump also signed an executive order named "Golden Card" on the 19th, claiming it would open a new "visa channel" for foreigners with extraordinary abilities who are willing to support the U.S.: individuals pay $1 million to the U.S. Treasury, or companies sponsor $2 million, and the foreigner can then receive expedited visa processing through the "Golden Card" program.

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