A new rule for H-1B visas will take effect this Sunday, imposing a $100,000 annual fee. But White House officials told Axios that the fee will not apply to existing holders of valid visas re-entering the United States. Following the text of the executive order signed by President Trump, some lawyers initially believed the new fees would apply immediately to all current holders, prompting them to urgently advise clients to return to the United States by Saturday or risk being affected.
Late Friday, Trump signed an order requiring H-1B visa holders or their corporate sponsors to pay a $100,000 annual fee for the visa. For major H-1B employers — tech companies like Microsoft, Amazon and outsourcing firm Cognizant — that could mean billions of dollars in new expenses each year.
The new regulations will officially take effect at 12:01 a.m. ET on Sunday. However, according to the terms of the provision, some lawyers believe that the fees will apply to all H-1B visa holders, including those who have been approved but are temporarily outside the United States for various reasons.
Some technology companies have told their H-1B employees to return to the United States by Saturday and avoid leaving the country thereafter.
“I hate to say it, but if you are an H-1B holder currently outside the United States, your safest bet is to try to re-enter by Sunday,” Douglas Russo, an immigration attorney, said in a widely shared comment on LinkedIn Friday night.
But that's not the case. White House officials clarified to Axios that the fee is only for new applicants and does not apply to existing holders or renewals. This provision will apply for the first time to the upcoming lottery application cycle.
While Trump has attracted public attention for cracking down on illegal border crossings, his policy on H-1B visas for high-skilled workers has been equally controversial. Traditional "MAGA" allies, such as Steve Bannon, believe that U.S. employers use H-1B to introduce skilled workers to replace domestic labor at wages far below local wages. Emerging Trump supporters from Silicon Valley insist that H-1B is crucial to attracting top talent from around the world.
White House spokesman Taylor Rogers said in a statement: "President Trump is committed to putting the interests of American workers first, and this practical step does just that by curbing corporate abuse of the system and driving down wages. It also provides certainty to American companies that truly want to bring in high-skilled talent - and they have suffered from system abuse in the past."
It is unclear whether existing H-1B holders will encounter any problems entering or exiting the country after Sunday.