Amazon, Microsoft, and JPMorgan, along with other global firms, are moving to protect their workforce after US President Donald Trump signed a proclamation introducing a $100,000 application fee for H-1B visas.
The announcement, made on Friday, created panic among companies that rely heavily on the visa to hire skilled foreign workers.
According to reports, the technology giants immediately issued emergency guidance to employees, urging H-1B holders not to leave the US until the rules were clarified. Staff members already overseas were advised to return before the measures took effect on Sunday.
JPMorgan, the largest US bank by assets, also instructed its staff holding H-1B visas not to travel outside the country. Goldman Sachs, in a memo, advised its workers to be “exercising caution around international travel.”
Fragomen, an immigration law firm that processes many H-1B visas, also told clients with approved H-1B petitions or visas to return to the US by Sunday.
Amid confusion, the White House issued a clarification on Saturday saying that visa program will apply exclusively to new visa applicants.
“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,” Press secretary Karoline Leavitt stated
She further confirmed that the one-off fee would apply only to new applicants and would take effect in the next visa cycle. This contradicted earlier comments by Commerce Secretary Howard Lutnick, who said the fee would be applied annually.
The H-1B visa is widely used in Silicon Valley to hire engineers, scientists, and coders from overseas. It is also common in accountancy firms, healthcare, and academia. About 400,000 H-1B applications were approved last year, most of which were renewals.
Garry Tan, CEO of Y Combinator, criticized the decision, saying it kneecaps start-ups and represents 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.
David Ho, a climate scientist at the University of Hawaii, warned that the new fee would harm US research. “This will further destroy the US science enterprise,” he wrote.
The move has sparked reactions outside the US. Goldy Hyder, president of the Business Council of Canada, said the country should redouble efforts to attract the skilled workers we desperately need.
Adrien Nussenbaum, co-founder and co-CEO of French tech unicorn Mirakl, also said the decision could boost European recruitment.
“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,” Nussenbaum stated.
India, whose nationals make up the majority of H-1B recipients, expressed concern about the humanitarian consequences. “The government hopes that these disruptions can be addressed suitably by the US authorities,” Its external affairs ministry stated
India, whose nationals make up the majority of H-1B recipients, expressed concern about the humanitarian consequences. “The government hopes that these disruptions can be addressed suitably by the US authorities,” Its external affairs ministry stated
It added that the global exchange of talent had contributed enormously to technology development, innovation, economic growth, competitiveness and wealth creation in the US and India.