Tech Giants React as US Imposes $100,000 Fee on New H-1B Visa Applications

Global companies including Amazon, Microsoft, and JPMorgan are scrambling to protect their foreign workforce after US President Donald Trump signed a proclamation introducing a $100,000 application fee for H-1B visas.

The announcement, made on Friday, triggered panic across the tech industry and beyond, as firms that depend on skilled foreign workers rushed to issue emergency guidance. Employees on H-1B visas were strongly advised not to leave the US until the rules were clarified. Those already abroad were told to return before the new measures kicked in on Sunday.

JPMorgan, the largest US bank by assets, instructed H-1B staff to avoid international travel. Goldman Sachs echoed the warning, urging caution in a staff memo. Immigration law firm Fragomen, which handles thousands of H-1B cases, also told clients with valid petitions to re-enter the US before the deadline.

White House Clarification

Amid confusion, the White House issued a clarification on Saturday. Press Secretary Karoline Leavitt explained that the new $100,000 fee applies only to new applicants, not existing visa holders.

“Those who already hold H-1B visas will NOT be charged $100,000 to re-enter,” Leavitt stated.
“The fee will be a one-time charge and will take effect in the next visa cycle.”

This clarification contradicted earlier comments from Commerce Secretary Howard Lutnick, who had suggested the fee would be charged annually.

Why This Matters

The H-1B visa program is vital for US companies, particularly in Silicon Valley, where it is used to recruit engineers, scientists, coders, and other highly skilled professionals. The program is also widely used in finance, healthcare, and academia.

In 2024, around 400,000 H-1B applications were approved, most of them renewals.

• Garry Tan, CEO of Y Combinator, called the move “a massive gift to every overseas tech hub” like Vancouver and Toronto, warning it could cripple US start-ups.
• David Ho, climate scientist at the University of Hawaii, said the fee would harm American research capacity, writing: “This will further destroy the US science enterprise.”

International Reactions

• Canada: Goldy Hyder, President of the Business Council of Canada, urged Ottawa to seize the opportunity and attract displaced talent.
• Europe: Adrien Nussenbaum, co-founder of French unicorn Mirakl, said the decision strengthens Europe’s ability to recruit globally and reinforces its tech competitiveness.
• India: The Ministry of External Affairs expressed humanitarian concerns, noting that Indian nationals account for the majority of H-1B recipients. It highlighted how cross-border talent exchange has fueled innovation and economic growth in both nations.

The Bigger Picture

Critics argue that imposing a $100,000 barrier on skilled migration could damage America’s leadership in technology and science, especially during an AI arms race. While the White House insists the policy is meant to prioritize American workers, global observers warn it may accelerate brain drain to Canada and Europe.