Existing H1B visa holders to pay $100,000 fee after Trump's order? Here's the truth
Trump raised H1B visa fees to $100K yearly starting Sept 21, but WH clarified current holders are exempt; the hike applies only to new applicants.
Following President Donald Trump's proclamation to increase the fee for H-1B visas to $100,000 per year, there is panic among existing H1b visa holders. Trump's decision, signed on Friday, will go into effect on Sunday, September 21. The change has caused uncertainty among existing visa holders about what lies ahead.
But in a big relief for workers already on H-1B visas, as well as tech companies, the White House announced a major decision on Saturday. Axios reported, citing a White House official, that existing H-1B visa holders will not have to pay the $100,000 fee, as mandated by Trump's new proclamation.
On Saturday, the White House official told Axios that the fee will apply only to new visa applicants. It will kick in for those applying for the upcoming lottery cycle for H-1B visas, the official added.
Why The Move Caused Panic
While signing the proclamation, Donald Trump said that it will go into effect on Sunday, 12:01 a.m. ET. Based on the order, many lawyers raised concern, based on the wording of the proclamation that existing workers or their companies may also have to pay the fee.
Because of the confusion, many lawyers reportedly advised their clients to return to the US urgently by Saturday.
Also read: 'Indians pleaded to get off': Chaos on plane in US after Trump's H-1B shock | Video
At present, registration fee for H-1B visas for highly skilled workers cost $215. The increase to $100,000 per year is set to hit both individual residents and the companies they work for, significantly. Based on an estimate published by Axios, the revised fee for H-1B visa could cost tech companies like Microsoft, Amazon, Cognizant and others “in excess of $1 billion.”
What Prompted Trump's Move
The H1b visa allows US tech companies to hire talent from other countries at a low cost and get them to work in the United States. As reported by the Associated Press, the H-1B visa rules allow tech companies to recruit workers way below the $100,000 per year typically paid to an American employee. Sometimes, those can be as low as $60,000.
According to the Trump administration, the motive behind the move was to make the US tech companies hire more people from the United States in their workforce. Commerce Secretary Howard Lutnick said: “If you’re going to train people, you’re going to train Americans.”
“If you have a very sophisticated engineer and you want to bring them in ... then you can pay $100,000 a year for your H-1B visa.”
