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US President Donald Trump (File Photo)
The White House on Saturday (21 September) clarified that its new H-1B visa fee will be a one-time $100,000 charge, limited to new applicants, easing fears across the tech industry, NDTV reported.
Earlier, US Commerce Secretary Howard Lutnick stated the fee would apply annually to both new visas and renewals, creating widespread confusion.
However, White House Press Secretary Karoline Leavitt issued a clarification on Saturday, hours before the new policy’s enforcement.
"This is NOT an annual fee. It's a one-time fee that applies... only to new visas, not renewals, and not current visa holders," she said in a social media post.
"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. H-1B visa holders can leave and re-enter the country to the same extent as they normally would; whatever ability they have to do that is not impacted by yesterday’s proclamation," she said.
The executive order, which is likely to face legal challenges, comes into force Sunday at 12.01 am US Eastern time (0401 GMT).
Before the clarification, many US firms advised H-1B staff against international travel, fearing re-entry issues.
According to the San Francisco Chronicle, some visa holders even de-boarded flights on Friday over concerns of being denied re-entry.
The H-1B program lets US firms hire skilled foreign professionals—engineers, programmers, scientists— to work in the United States for up to six years.
About 75 per cent of such visas, which are allotted via a lottery system, go to Indian nationals each year.
In 2024, the US approved nearly 400,000 H-1B visas, with renewals forming two-thirds of the total.
US President Donald Trump unveiled the policy Friday, calling it a step to safeguard American jobs.
Trump also introduced a $1 million "gold card" residency program he had teased months ago.
"The main thing is, we're going to have great people coming in, and they're going to be paying," Trump told reporters as he signed the orders in the Oval Office.
Joining Trump, Lutnick repeatedly insisted the fee was annual, fueling uncertainty.
He argued companies must weigh whether an employee is worth “$100,000 a year to the government” or replace them with US hires.
Despite Lutnick’s claim that “big companies are on board,” many firms remained unclear about the order.
US bank JPMorgan issued a memo urging its H-1B staff to stay in the US and suspend travel until further updates.
Prominent entrepreneurs, including former Trump ally Elon Musk, cautioned against restricting H-1Bs, citing a shortage of US tech talent.
Responding to the US decision, External Affairs Ministry said the mobility of skilled talent had contributed to "innovation" and "wealth creation" in both countries and that it would assess the changes.
It added that the policy could cause “humanitarian consequences” by disrupting families, urging US authorities to address the concern.