$100,000 fee hike on H-1B visa a one-time charge, only for new applications, says US

In a major relief to existing H-1B visa holders, the White House clarified that the staggering $100,000 fee imposed on non-immigration visa petitions would be a one-time charge and the new norms would be applicable only to fresh applications.

The clarification came hours after US President Donald Trump signed a proclamation to the effect that sparked panic and confusion among techies, forcing some of them to scramble back to America.

“H-1B visa holders can leave and re-enter the country to the same extent as they normally would. Those who already hold H-1B visas and are currently outside of the country will not be charged to re-enter,” Karoline Leavitt, the White House Press Secretary, posted on X to allay fears among H-1B visa holders.

Leavitt also clarified that the $100,000 fee (approximately Rs 90 lakhs), is not an annual charge but a one-time fee. The executive order will come into effect from the next lottery cycle among the next batch of visa applicants.

The clarifications come as a huge relief for Indian nationals currently working in the US on H1B visas who were apprehensive that they would be burdened with an annual levy, and an additional cost also while re-entering the country.

In a written statement, the State Department, while citing several statistics, said the changes are aimed at curbing abuses that “undermine national security” by outsourcing firms that replace US workers with cheaper foreign labour.

The foreign science, technology, engineering, and mathematics (STEM) workers in the US have doubled between 2000 and 2019 to nearly 2.5 million, it said.

"No more will these Big Tech companies or other big companies train foreign workers. Train Americans. Stop bringing in people to take our jobs," US Commerce Secretary Howard Lutnick, said, standing beside Trump, who in the Oval Office signed the proclamation titled 'Restriction on Entry of Certain Non-immigrant Workers’.

H-1B visas are non-immigration work visas, granted for three years and extendable up to six years, to highly skilled foreign workers who are sponsored by companies to work in the US.

Annually, the State Department approves 85,000 H1B visa applications, mostly in the information technology, finance, and engineering sectors.

In recent years, Indian nationals have accounted for more than 70 percent of H-1B approvals. It is widely used in industries such as information technology, finance, and engineering.