Major corporations across technology, finance, and other sectors are rushing to safeguard their employees following U.S. President Donald Trump’s proclamation imposing a steep $100,000 fee on H-1B visa applications. The announcement, made late Friday, sent shockwaves through industries that rely heavily on foreign talent, particularly Silicon Valley and Wall Street, where the visa is a cornerstone of workforce strategy.
Within hours of the news, companies including Amazon, Microsoft, and JPMorgan Chase issued urgent travel and compliance directives to their staff. These directives advised employees holding H-1B visas to remain in the U.S. until more clarity emerged around the measure. Employees already abroad were urged to return before the new rules were slated to take effect on Sunday.
Financial institutions responded swiftly as well. JPMorgan, the largest bank in the United States by assets, cautioned its H-1B visa holders against international travel until further guidance was available. Goldman Sachs circulated a memo instructing its staff to be “exercising caution around international travel.” Immigration law firm Fragomen, which processes a significant number of H-1B petitions annually, went further, urging clients with approved visas or pending petitions to return to the country before the deadline.
Background and Clarification
The sudden rollout triggered widespread confusion across corporate America and beyond. Questions over whether the fee would apply to existing visa holders fueled panic, particularly for thousands of workers who travel frequently for business.
In response, the White House issued a clarification on Saturday. “Those who already hold H-1B visas and are currently outside of the country 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 said. She confirmed that the new fee would be imposed only on first-time applicants, starting with the next visa cycle.
Her comments appeared to directly contradict earlier remarks from Commerce Secretary Howard Lutnick, who had suggested the $100,000 charge would be applied annually. The conflicting statements added to the uncertainty among both employers and employees navigating the changes.
Impact on Industry and Workforce
The H-1B visa program is one of the most vital channels for recruiting highly skilled workers from abroad. Last year alone, approximately 400,000 applications were approved, the majority of which were renewals. The program is especially critical in technology, healthcare, finance, and academic research, where domestic labor shortages persist.
Criticism came swiftly from the tech community. Garry Tan, CEO of start-up accelerator Y Combinator, condemned the decision as shortsighted and damaging to U.S. competitiveness. “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 said, arguing that the new policy risks diverting innovation to competing markets abroad.
Academics expressed similar concerns. David Ho, a climate scientist at the University of Hawaii, warned that the decision could weaken U.S. scientific progress. “This will further destroy the U.S. science enterprise,” he wrote, reflecting fears that researchers and institutions would struggle to recruit global talent under the new rules.
International Response
The policy shift has reverberated far beyond American borders. Business leaders and policymakers in Canada and Europe quickly framed the move as an opportunity to attract displaced talent. Goldy Hyder, president of the Business Council of Canada, called for stronger efforts to welcome skilled workers. “Canada should redouble efforts to attract the skilled workers we desperately need,” Hyder said.
Adrien Nussenbaum, co-founder and co-CEO of French tech unicorn Mirakl, echoed that sentiment, emphasizing the competitive advantage Europe could gain. “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,” he stated.
India, whose citizens make up the majority of H-1B visa holders, expressed official concern through its Ministry of External Affairs. The ministry stressed the humanitarian and economic implications of the fee, underscoring that “the government hopes that these disruptions can be addressed suitably by the U.S. authorities.” It added that the global exchange of talent has been critical in driving “technology development, innovation, economic growth, competitiveness and wealth creation in the U.S. and India.”
Looking Ahead
The $100,000 application fee represents one of the most dramatic shifts to U.S. immigration policy in recent years, effectively pricing out many small firms and start-ups that rely on foreign talent to scale. While multinational corporations may be able to absorb the cost, industry leaders warn that early-stage companies and research institutions could be disproportionately harmed.
As the policy takes effect, questions remain about its long-term impact on the U.S. economy and innovation ecosystem. Analysts suggest the move could accelerate the migration of talent to Canada, Europe, and Asia, reshaping the global landscape of innovation and weakening the U.S. advantage in critical fields such as artificial intelligence, biotechnology, and advanced research.
The coming visa cycle will serve as a crucial test of how companies adapt to the policy, how many applicants are deterred by the steep fee, and whether foreign governments can successfully position themselves as alternative destinations for the world’s top talent.
