【By Observer News, Wang Kaiwen】The sudden announcement of the H-1B visa regulation by US President Trump caused chaos over the weekend.

Amazon, Microsoft and other American companies urged employees abroad to return to the US urgently; H-1B visa holders, fearing they might not be allowed to enter, canceled their vacations and returned early. According to multiple Indian media reports, a group of American netizens incited maliciously booking tickets in an attempt to prevent Indian employees from entering.

As the White House clarified that the new H-1B regulations apply only to new applicants, the panic gradually subsided. However, Reuters pointed out that Trump's latest action has already sounded the alarm in Silicon Valley.

The Financial Times stated on the 21st that the new H-1B visa regulations could cost US employers $1.4 billion annually. The impact on the US tech industry, which heavily relies on overseas employees, is self-evident.

According to the statement signed by Trump on the 19th, starting from September 21st, the fees paid by companies for H-1B visa applicants will be increased to $100,000. US Commerce Secretary Rutenberg said on the same day that the new fees "are calculated annually" and apply to both initial applications and renewals.

Upon the release of the news, major American companies including Microsoft, Amazon, Google's parent company Alphabet, and Goldman Sachs sent emergency emails to their employees, issuing travel warnings.

Reuters saw at San Francisco Airport over the weekend that several Indian citizens, worried about being unable to enter after the new policy took effect, ended their vacations early.

"Now we have to choose between our family and staying here," said an engineer working at a large US technology company.

The engineer's wife also holds an H-1B visa and was planning to return to India to care for her sick mother. She had originally planned to fly from San Francisco to Dubai at 5:05 PM on Friday. Due to multiple Indian passengers requesting to disembark after receiving messages from their employers, the flight was delayed by three hours. Ultimately, at least five passengers were allowed to disembark.

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

Indian employees are the largest group among H-1B visa holders. Last year, 71% of those approved for H-1B visas came from India.

Media outlets such as The Hindustan Times and India Today noticed that within two hours of Trump's announcement of the H-1B regulation, the price of one-way tickets from New Delhi, India, to John F. Kennedy International Airport in New York, USA, soared from 37,000 rupees (approximately RMB 2,990) to 70,000 to 80,000 rupees (approximately RMB 5,650 to 6,460).

At the same time, on the online forum 4chan, a group of users called on netizens to maliciously order tickets without paying, attempting to paralyze the flight booking system and prevent Indians from returning to the US.

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

White House Press Secretary Caroline Leavitt clarified on the 20th that the new fee would take effect in the next application cycle, and those who already hold H-1B visas or have renewed them are not 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 platform. "H-1B visa holders can leave and re-enter the country as usual."

Reuters reported that as of the 21st local time, the panic caused by the H-1B regulation had gradually subsided.

"I think this caused a panic over the weekend because people were unsure about the status of existing H-1B visas. However, this has been clarified over the weekend, so there is no panic now," said Gary Cohn, vice chairman of IBM, during an appearance on CBS' "Face the Nation" program.

Even so, Reuters pointed out that Trump's latest move has already sounded the alarm in Silicon Valley.

The Financial Times cited data from the US Citizenship and Immigration Services (USCIS), stating that in 2024, more than 141,000 new H-1B applications were approved in the United States. If this number remains unchanged, and if the new application fee is $100,000 per person, US companies will pay $1.4 billion annually for this.

The report pointed out that Silicon Valley heavily relies on H-1B visas to hire overseas engineers, scientists, and programmers. USCIS data showed that in 2023, about two-thirds of H-1B holders worked in the IT industry. In addition, employers in industries such as accounting and healthcare in the US widely use these visas.

Garry Tan, CEO of Y Combinator, a well-known startup incubator in Silicon Valley, posted on X that Trump's decision was a mistake, "killing startups," and like "giving a big gift to overseas tech centers including Vancouver and Toronto in Canada."

"In the short term, Washington may gain unexpected revenue; but in the long run, the US may lose its innovation advantage due to this short-sighted protectionism, sacrificing vitality," said Jeremy Goldman, an analyst at eMarketer, a market research firm based in New York.

According to reports, some American companies have already prepared to take legal action to overturn the H-1B regulation. Lawyers representing large American companies told the Financial Times that their clients are waiting for further clarification from the US Department of State, which is responsible for issuing visas.

Matthew Dunn, a partner at Smith & Williamson, stated that while the administration has the authority to charge certain fees to offset the costs of managing the H-1B program, the $100,000 price tag "is completely beyond their regulatory authority."

"We believe the possibility of court intervention to stop this announcement is very high," Dun added.

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

The Financial Times reported that the US government is expected to push for broader reforms to the H-1B visa, including increasing its wage threshold. Some Republican lawmakers have called for H-1B visas to be allocated based on salary rather than the current lottery system.

According to reports, US employers are considering applying for other types of visas for their employees, including the L-1 visa designed for managers and professional staff. However, this visa has stricter requirements, requiring employees to have worked continuously at the company's foreign branch for at least one year.

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