Washington: The Biden administration has clarified that a newly announced $100,000 fee for H-1B visas will not be imposed on existing visa holders, bringing relief to thousands of skilled foreign workers currently employed in the United States. The fee, one of the most sweeping changes to the U.S. visa system in years, will apply only to new applicants entering the H-1B lottery, according to a Reuters report citing White House officials.
The policy specifies that the additional cost will affect only those applying for a fresh H-1B visa starting with the next lottery cycle. Those who already hold valid H-1B status, as well as individuals in the process of renewing their visas, will remain exempt. Importantly, even if current holders travel abroad, their return to the U.S. will not trigger the new charge. The clarification was issued after concerns spread rapidly through the tech industry and among immigrant workers about whether the fee would extend to renewals and re-entries.
The announcement of the fee has already stirred unease among U.S. technology companies and Indian IT firms that rely heavily on skilled workers under the H-1B program. Indian industry body Nasscom warned that such a steep cost could “upend” operational models, making it financially burdensome for companies to move employees across borders. American tech giants, including Microsoft, Amazon, and Alphabet, reportedly advised staff on H-1B visas to avoid international travel until the policy was clarified, fearing that employees might face unexpected costs upon re-entry.
For many H-1B holders, the initial reports prompted anxiety. Some cut short trips abroad, worried they would be required to pay the new fee if they attempted to return. The White House’s statement has eased immediate fears, but the scale of the new levy has left future applicants uncertain about their prospects. At $100,000, the charge is far higher than existing visa filing and legal costs, effectively raising the financial threshold for foreign professionals aspiring to work in the U.S.
Officials have not yet offered a detailed explanation for the decision, though analysts suggest the measure may be aimed at limiting demand for H-1B visas, raising federal revenue, or reshaping the flow of skilled migrants. The policy is expected to spark both political debate and legal scrutiny, particularly given the program’s importance to industries such as information technology, healthcare, and engineering.
The introduction of such a fee could significantly alter global hiring strategies. Some companies may choose to station more employees outside the United States, while others may reduce the number of foreign professionals they sponsor. There is also concern that the high fee may deter smaller firms or startups who often rely on international talent but lack the financial resources of large corporations from competing for skilled foreign workers.
As implementation details emerge, much will depend on how U.S. agencies manage the process and whether exemptions or adjustments are introduced. Immigration lawyers anticipate potential challenges in courts, while foreign governments especially India, whose nationals make up the majority of H-1B visa holders are expected to press Washington diplomatically to soften the impact.
For now, the administration’s assurance that existing visa holders will not be charged offers a measure of relief, but uncertainty remains for future applicants, whose path to working in America may soon come with an unprecedented financial barrier.