Barely 24 hours after US President Donald Trump signed a proclamation imposing a $100,000 payment on H-1B visas, confusion has spread across the United States, India, and beyond. What began as an order appearing to hit all 700,000 existing visa holders has been scaled back, with US officials now insisting the rule will only apply to new applications. The whiplash has left families, businesses, and governments scrambling for clarity.
The proclamation, signed on 19 September, accused firms of abusing the H-1B system to undercut American workers. “The large-scale replacement of American workers through systemic abuse of the programme has undermined both our economic and national security,” Trump wrote, calling it necessary “to impose higher costs on companies seeking to use the H-1B programme.”
Initially, estimates suggested that applying the fee universally would generate around $63 billion annually. The impact would have been devastating for hundreds of thousands of workers already in the United States, many of them in health care, higher education, and technology. But a memorandum from US Citizenship and Immigration Services the next day stressed the proclamation “only applies prospectively to petitions that have not yet been filed.”
That clarification was reinforced by White House press secretary Karoline Leavitt: “To be clear: this is NOT an annual fee. It’s a one-time fee that applies only to the petition. 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. This applies only to new visas, not renewals, and not current visa holders. It will first apply in the next upcoming lottery cycle.”
The distinction is critical. Limiting the measure to new applications reduces the potential revenue to around $8.5 billion a year, based on the 85,000 visas typically awarded. But for aspiring applicants, it represents an almost impossible barrier, shifting the H-1B from a high-skilled work visa to an elite programme accessible only to the wealthiest firms.
The Government of India responded swiftly, issuing a statement on 20 September noting that “industry in both India and the US has a stake in innovation and creativity and can be expected to consult on the best path forward.” It warned that the measure “is likely to have humanitarian consequences by way of the disruption caused for families,” and urged that such disruptions “can be addressed suitably by the US authorities.”
Entrepreneur Nayini Anurag Reddy voiced the panic many felt before the clarifications. “Tonight, thousands of Indians on H1B/H4 visas are stranded here in India. They came for stamping, to meet parents, to attend a wedding. Now, a rule say, if they don’t return to US by Sept 20 midnight, their dreams die unless companies pay $100,000,” he said, urging the Indian government to act and reminding those affected that “life is bigger than any visa or deadline.”
The Hindu American Foundation also weighed in: “We know that thousands of Hindus in America are confused, frightened and filled with many questions after ’ sudden EO affecting H1-B visas. We are waiting for more clarification and guidance regarding this announcement, its legality, implications for those going to India for visa stamping and more.” The group said it stood “in solidarity with these talented, highly skilled workers who have made enormous contributions to our country.”
Public figures added to the chorus. Comedian and actor Vir Das wrote, “You’d be pretty heartless to not empathise with H1B holders right now. Kids in school, mortgages, loans, sending money home…to live under the stress of having it all taken away on a whim.”
Others pointed to long-term risks. Atal Agarwal, a US resident, predicted an exodus of tech jobs north of the border: “Within 6 months, a major tech company will announce they’re moving their entire AI division to Toronto ‘for operational efficiency.’ They won’t mention H-1B. They’ll cite ‘talent availability’ and ‘cost optimisation.’”
What began as the threat of a sweeping ban has been narrowed to a smaller but still profound change. For aspiring H-1B applicants, the cost has skyrocketed. For those already in the system, relief has followed panic.
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🇺🇸 @realDonaldTrump's #H1Bvisa proclamation caused confusion with a proposed $100k fee.🔄US officials clarified it applies only to new applications, not current holders or renewals.📉#India warned of humanitarian & industry disruption.🤝 #TheIndianSun
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