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US tech companies, including Microsoft, are advising employees on H-1B and H-4 visas who are currently abroad to return to the United States immediately, ahead of a September 21 deadline. That is when President Donald Trump’s new rule imposing a USD 100,000 annual fee per H-1B visa takes effect.
The Trump administration has announced that the new fee will remain in force for 12 months. The H-1B programme allows American companies to employ highly skilled foreign workers in fields such as technology and engineering.
Reports suggest that Microsoft and JPMorgan have instructed H-1B workers already in the US to remain in the country “for the foreseeable future” and to avoid international travel until further notice. Microsoft has also advised H-4 visa holders, who are dependents of H-1B workers, not to leave the US. “We strongly recommend that all H-1B and H-4 visa holders return to the US before the deadline,” the company reportedly told employees. Neither Microsoft nor JPMorgan has issued an official statement.
President Trump has said the revised, fee-based visa programme could generate more than $100 billion for the US Treasury, earmarked for reducing the national debt and funding tax cuts. Critics argue the policy will restrict talent mobility and slow innovation.
Around 71% of H-1B visa holders are from India, many of them employed by technology firms such as Infosys, Wipro, Cognizant, and Tata Consultancy Services. Following the announcement, shares of several major IT services companies, including US-listed Indian firms, fell between 2% and 5%.
Currently, H-1B visas are valid for three years and can be renewed for up to six years. The new $100,000 annual fee could make it prohibitively expensive for companies to retain skilled professionals, especially given the decades-long wait many face for US green cards.
Employers currently pay multiple fees when sponsoring H-1B workers. These include a USD 215 registration fee and a basic filing fee ranging from USD 460 for small employers and nonprofits to USD 780 for larger companies. Additional costs cover training (USD 750–USD 1,500), fraud prevention (USD 500), and optional premium processing (USD 2,805). Large employers may also pay USD 4,000 under Public Law 114-113, while asylum programme fees range from USD 0 for nonprofits to USD 600 for bigger companies.
(With IANS inputs)