Companies are rushing to ensure thousands of employees around the globe do not trigger hefty new immigration fees after Washington announced sweeping changes to the H-1B foreign worker visa relied on by US tech groups.
US President Donald Trump on Friday signed a proclamation introducing a $100,000 application fee for the visa, but did not clarify whether the change would apply to existing H-1B holders.
Companies including Amazon and Microsoft issued emergency guidance to employees, urging H-1B holders not to leave the country until the new rules were clarified. They also asked staff currently overseas to return to the US before the measures came into force on Sunday.
The two technology giants had more than 15,000 H-1B visas approved in the most recent fiscal year, according to the US Department of Homeland Security.
Amazon did not respond to a request for comment. Microsoft declined to comment.
JPMorgan, the largest US bank by assets, also advised its staff on H-1B visas not to travel outside the US for now, according to a person familiar with the matter. JPMorgan declined to comment.
Goldman Sachs said in a memo to employees holding the visas that they should be “exercising caution around international travel”.
Fragomen, an immigration law firm that processes many H-1B visas, advised its clients with approved H-1B petitions or visas to return to the US by Sunday.
The White House on Saturday sought to clarify the scope of the changes amid the confusion.
Press secretary Karoline Leavitt confirmed that the one-off fee would apply only to new applicants, not current H-1B holders or those renewing their visa. She added that the new fees would only kick-in in the next cycle.
“Those who already hold H-1B visas and are currently outside of the country right now will NOT be charged $100,000 to re-enter,” she wrote on X.
“H-1B visa holders can leave and re-enter the country to the same extent as they normally would.”
Her comments appeared to differ from those offered by commerce secretary Howard Lutnick on Friday, who said the fee would be applied annually.
The director of US Citizenship and Immigration Services Joseph Edlow wrote to staff on Saturday ordering immigration officers to “ensure that their decisions are consistent” with the clarified terms.
A White House spokesperson said the move aimed to encourage companies to hire American workers and give certainty to those hiring foreigners.
About 400,000 H-1B applications were approved last year, the majority people renewing their visas.
Silicon Valley relies heavily on H-1B visas to hire engineers, scientists and coders from overseas. The non-immigrant visa is also widely used by specialist industries, including accountancy firms and healthcare companies.
Prominent members of Trump’s coalition have previously expressed support for the H-1B programme, including his largest donor Elon Musk. But others such as former White House strategist Steve Bannon have called for the scheme to be abolished so that American workers are protected.
Garry Tan, chief executive of the start-up incubator Y Combinator, said in a post on X that the decision by Trump was a mistake that “kneecaps start-ups” and represented a “massive gift to every overseas tech hub” including Vancouver and Toronto in Canada.
“In the middle of an AI arms race, we’re telling builders to build elsewhere. We need American Little Tech to win — not $100K toll booths,” Tan added.
Goldy Hyder, president of the business council of Canada, said the country should “redouble efforts to attract the skilled workers we desperately need”.
Toronto-based Alex Tapscott, managing director of the digital asset group at Ninepoint Partners, said the US visa changes could help Canada become a preferred destination for global talent.
“America’s loss can be Canada’s gain,” he said.
European tech companies also said Trump’s move could potentially benefit them.
Adrien Nussenbaum, co-founder and co-CEO of French tech unicorn Mirakl, said: “We see it above all as a tremendous opportunity for European tech. By making Europe more attractive to highly skilled professionals, it strengthens our ability to recruit globally and reinforces the continent’s position as a hub for innovation and competitiveness.”
Indian nationals make up the majority of H-1B recipients. India’s external affairs ministry said in a statement that the visa change was “likely to have humanitarian consequences by way of the disruption caused for families”.
“The government hopes that these disruptions can be addressed suitably by the US authorities.”
The ministry said the global exchange of talent had “contributed enormously to technology development, innovation, economic growth, competitiveness and wealth creation in the US and India”.
The Indian government late on Saturday advised all its missions to extend all possible help to Indian nationals travelling back to the US in the next 24 hours or so.
Additional reporting by Adrienne Klasa in Paris