Trump's $100,000 H1-B Visa Fee Spurs Confusion and Chaos for Companies - The New York Times
Category: News & Politics
Via: perrie-halpern • last year • 20 commentsBy: Madeleine NgoLauren Hirsch and Pranav Baskar
The White House sought to clarify the proclamation on Saturday, but many companies remained cautious. "We are still flying in somewhat foggy conditions," one attorney said.
xxPresident Trump after signing a proclamation on Friday instituting a $100,000 fee for visas given to some highly skilled foreign
Sept. 20, 2025
Wall Street banks and tech companies big and small were scrambling on Saturday to figure out how their tens of thousands of employees would be affected by President Trump's proclamation imposing a $100,000 fee for visas granted to skilled foreign workers.
The change set off immediate confusion over the exact rules and how they would be enforced. Shortly after Mr. Trump signed the proclamation on Friday, employees at Microsoft, Amazon and JPMorgan received notices advising those with H-1B visas who were outside the United States to return before the new rules take effect at 12:01 a.m. Eastern time on Sunday.
The Trump administration sought to address the confusion on Saturday by saying that the fee would only apply to new applicants, and renewals or current visa holders would not be affected. In a post on social media, the White House said the change would "not impact the ability of any current visa holder to travel to/from the U.S."
Still, many executives, general counsels and human resources departments, as well as their immigration lawyers, said they were coming down on the side of caution this weekend. Several companies and attorneys had already urged workers to return to the United States as soon as possible. Many kept their eyes glued on the White House social media accounts for any pertinent clarification.
"We acknowledge that this is an uncertain time for our people on H-1B visas and your families," Jacqueline Arthur, head of human capital management at Goldman Sachs, wrote in a memo on Saturday to employees. The memo said that Goldman was working with its lawyers "to review the specifics of the order as more detail becomes available to communicate with you accordingly."
Bernhard Mueller, co-chair of the immigration practice group at Ogletree Deakins, said he had been flooded with calls from executives and corporate board members about the new rules and how to communicate with employees about them. "There's a lot of question marks all over this," he said early Saturday. "We are still flying in somewhat foggy conditions."
Late Saturday, the U.S. Citizenship and Immigration Services issued a memo underscoring that Mr. Trump's proclamation only applied "prospectively to petitions that have not yet been filed."
Still, the policy change represents a significant overhaul of how the United States distributes what are known as H-1B visas. The visas, which play a crucial role in helping employers fill jobs in the tech industry and beyond, have been at the center of a deep immigration debate.
Immigration hard-liners contend that the visa program hurts Americans because companies have brought in foreign workers at lower wages, while many business leaders say the program helps American companies stay competitive.
White House officials said the policy change would help ensure that companies were giving priority to hiring domestic workers. "President Trump promised to put American workers first, and this common sense action does just that by discouraging companies from spamming the system and driving down wages," Taylor Rogers, a White House spokeswoman, said in a statement.
But executives and industry trade groups said they worried about how the steep fee would affect businesses' ability to fill critical positions. A spokesman for the U.S. Chamber of Commerce said the group was working with the Trump administration and its members to "understand the full implications and the best path forward."
"We're concerned about the impact on employees, their families and American employers," Matt Letourneau, a spokesman for the chamber, said in a statement.
Amazon, Meta, Google, Apple and Walmart, which are among the biggest users of H-1B visas,either declined to comment or did not respond to a request for comment.
Adam Kovacevich, the founder and chief executive of Chamber of Progress, a left-leaning tech industry policy coalition, said he expected that firms would have to reassess their entire approach to the H-1B visa program, and he worried about how the change could affect the nation's competitiveness in fields like artificial intelligence.
"I think this is going to mean that we're fighting the A.I. war against China with one hand tied behind our back," Mr. Kovacevich said. "There is a limited number of top talent in A.I., and some of that is foreign-born."
The change was widely expected to be met with lawsuits. Jeff Joseph, the president of the American Immigration Lawyers Association, said the organization was working with other groups to file a legal challenge seeking a temporary restraining order as soon as this weekend. Mr. Joseph said the organizations had been making strategy calls over the weekend and working on finding plaintiffs who represent a wide range of industries.
Benjamin Johnson, the executive director of the association, said the group's members were "dealing with chaos" as their clients have been scrambling to understand the change. "I'm just hearing confusion and panic," he said.
ImageEmployees at Microsoft, Amazon and JPMorgan received notices on Friday advising those with H-1B visas who were outside the United States to return before the new rules take effect.Credit...David Ryder/Getty Images
Although tech companies receive the most H-1B visas, Mr. Johnson underscored that the new fee would also affect workers in the medical and manufacturing industries as well as at universities who receive H-1B visas. "The numbers of companies and industries where H-1B workers play a really critical role is incredibly broad," he said.
Some workers who are currently abroad said they were unsure about how to immediately respond. A 29-year-old software engineer with a stamped H-1B visa set to begin in less than 20 days, was tucked into bed in his Munich apartment early Saturday when he realized he might be stuck in Germany.
Speaking before the government's clarification on how the visa fee would be applied, the software engineer, who is an Indian citizen with a German work visa, said he felt "clueless" about how to proceed. He spoke on condition of anonymity because he was worried about his visa status.His company, he said, had told him to stay put.
In its email to employees on Friday evening, Microsoft, which has roughly 5,200 employees in the program, said that workers currently in the United States should remain there "for the foreseeable future," even if it interrupts future travel plans.
"The critical thing is to stay in the U.S. in order to avoid being denied re-entry," the advisory said.
Some policy experts praised the Trump administration's change and said it would help ensure that companies are not suppressing wages or giving priority to hiring foreign workers over Americans. Lora Ries, the director of the Border Security and Immigration Center at the Heritage Foundation, a conservative think tank in Washington, said the $100,000 fee was a "good start" at reforming the H-1B program because it would make companies prioritize which foreign workers they want to hire.
"Americans aren't getting a fair shake at the opportunities because too many employers are bending the system," Ms. Ries said.
But the policy change also raised concerns about the long-term impact on the U.S. economy and corporate America. Venture capitalists warned that the change would add to concerns surrounding an uneven playing field, with only the nation's largest companies being able to pay the fees or secure an exemption, as technology giants like Apple and Nvidia have already done with certain tariffs.
The challenges of complying may be particularly acute for start-ups, many of which operate for years without reaching profitability.
"There is not a single company that I have invested in the last 10 years that could afford to pay this," said the venture capitalist and private equity investor Alan Patricof.
The government caps H-1B visas at 85,000 a year, and visa holders can also bring in their immediate family in a related program. The vast majority are typically granted to Indian citizens.
The Indian government issued a statement on Saturday saying that it was still determining "the full implications" of the new visa rules. But, the Ministry of External Affairs said, "This measure is likely to have humanitarian consequences by way of the disruption caused for families."
Mukesh Aghi, chief executive officer of the US-India Strategic Partnership Forum, said he had been reaching out to some of the 450 companies in his membership for their opinion on the organization's next steps.
"We understand our administration's position that they want to avoid misuse of H-1B — and we support that," Mr. Aghi said.
"But at the same time, we just want to make sure that in the process, companies which are creating jobs here do not get penalized."
Karen Weise, Hamed Aleaziz, Eli Tan and Rob Copeland contributed reporting
Madeleine Ngo covers U.S. economic policy and how it affects people across the country.
Lauren Hirsch is a Times reporter who covers deals and dealmakers in Wall Street and Washington.
Pranav Baskar is an international reporter and a member of the 2025-26 Times Fellowship class, a program for journalists early in their careers.
A version of this article appears in print on , Section A, Page 17 of the New York edition with the headline: Trump's $100,000 Fee For Visas Creates Chaos. Order Reprints | Today's Paper | SubscribeSee more on: U.S. Politics, Apple Incorporated, Goldman Sachs Group Inc., Microsoft Corporation, Donald Trump
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Trump is running out of things to do. The time to begin replacing people in the administration is approaching must sooner than expected.
Is there a shortage of gold leaf? Pray it is so.
What does that have to do with the price of sausage in Kraków?
First on the list - Pam Bondi. He bribed her to ignore his fraudulent university, but apparently, she just hasn't been quite unethical enough to suit him lately. I anticipate she'll be resigning to spend more time with her family soon.
Nah. She will be clutching her duvet doing the full Trump Spread.
"Yes,Trump. Yes. Yes. Make me violate the Constitution more!"
Sarcasm, in case you didn't recognize...
Nope. Bondi hasn't run out of things to do. (Which is probably why the opposition wants her gone.) DOJ, DOW, and Homeland Security will be under fire from the opposition so they're all pretty safe.
We haven't heard much about Lori Chavez-DeRemer, Doug Burgum, Brooke Rollins, Scott Turner, Sean Duffy, Chris Wright, and Linda McMahon yet. There will be a growing need to stir the cesspool as a distraction and less controversial departments will be tossed around to see which one will raise a stink. Trump's style would be to goad Democrats into attacking the women in cabinet positions. National parks, forest land, and wildlife issues are usually good issues to goad Democrats into screeching. And farm subsidies generally play well to the Republican base. Energy issues are a mixed bag nowadays so should raise a lot of smoky distractions.
The economy will very likely turn sour after this holiday season. That'll put Howard Lutnick and Scott Bessent in the hot seat. Bessent may become more prominent when the government shuts down at the end of the month. Dept. of Commerce and Treasury are likely to receive a lot of attention early next year when the indigent rich are begging for bailouts. IMO the economy will take center stage early next year.
For me, this is a serious issue. My Italian SIL is in Germany running the marathon with my daughter when this all hit. He is awaiting legal advice from JPMorgan to see if he can get back into the country. I guess we'll find out
I don't understand the concern so I must be missing something. My understanding is that the fee is charged against the company requesting an H-1B visa. Businesses apply for the H-1B visa, not the individual. A businesses attempting to pass the fee on to the recruited H-1B worker would seem to be a shady business practice. So, I do not understand why this fee would affect H-1B employees traveling outside the US?
Because when the news first came out, there was a midnight deadline, which made it sound like people who already had H1Bs were not going to be allowed into the country. Airports around the world saw loads of people trying to re-enter the US before midnight. It is still not 100% clear as who will be affected.
I haven't seen any of that reporting. What I heard was that the H-1B employers would be affected. The employers might be on the hook for $100k. I hadn't seen any reporting that the H-1B employees would be barred from re-entering the country.
This morning's reporting seems focused on IT H-1B employers and Indian employees. Naturally the most important issue is money. It is truly amazing to what depth the United States provides jobs and business opportunities for foreign interests. Seems we're supposed to take care of everyone else before taking care of ourselves.
Fantastic. The exploitation of the system has to stop.
if the workers are truly special, companies will gladly pay 100,000 for them. If they are just foreign drones fhey can pay less than they would an American, that incentive goes away.
I have to agree. I worked as a computer consultant for a few years and was always seeing a lot of foreign IT workers who were brought in by US companies and farmed out as consultants, and were paid very poorly. IMO it's been one hell of a scam for these companies to bring in foreign IT workers, pay them a pittance and shop them out for a few hundred dollars an hour. As an example, I was paid a nice 6 digit income and had my travel and lodging covered when I was onsite as well as a daily per diem for food. I worked along side a couple of Indians (great guys by the way, really knew their stuff) who received a mid-5 digit salary and had to cover their own travel, lodging and food out of that.
My husband lost his job to outsourcing. So I get it. But putting out an unclear edict is not the way to handle this.
As for paying $100K to hire a foreigner is an outrageous amount. Imagine if any hire came with that price tag. I can understand reforming the H1B system, but that is just unreasonable.
Does Congress still make law or is law now created by the Executive branch?
Congress has abdicated its responsibility. Too many of them find monarchy acceptable. And it's not even a constitutional monarchy.
My small Oklahoma hometown is offering a $150,000 bonus and free rent to newly graduated medical doctors to move there.
Towns have been doing that for years to get doctors. Didn't you ever watch "Northern Exposure"?
I doubt people have a clue how this is going to affect healthcare and their ability to access it.
Clarence Thomas in the house! Man, brings me back to the Biden years when progressives went nuts because Biden tried to spend 500 billion without congressional authorization and how happy progressives were originalist judges sat on the bench.
I can agree with the sentiment behind it but money is the only language that business understands. In my example, those two guys were getting much less than half the pay I was getting and had to pay their own expenses as well. The company got away with it because the individuals accepted it, and in return the company was able to provide them for work at a reduced billing rate. Now if the company that hires them has to also cover that $100K fee, it will be forced to raise the billing rate and potentially make it more economical to hire a local person to do the same work.
That $100K fee is to help protect US workers from being replaced by foreigners to do the same work. I seem to remember there was also some tax changes for taking the company offshore vs keeping it here, again to protect the US workers. The entire outsourcing vs onshoring has been going back and forth for many years, I've lived thru it myself. Fortunately I was in a career field that was very much in demand, so I never lost my job over that.