$100,000 H-1B Visa Fee For New Applicants, Current Holders Can Re-Enter US: White House Amid Confusion

US President Donald Trump.

The White House issued a significant clarification Saturday regarding its new H-1B visa policy that had caused concern throughout the tech industry, explaining that a $100,000 fee will be a "one-time" payment imposed only on new applicants.

When announcing the substantial fee increase on Friday, US Commerce Secretary Howard Lutnick had stated it would be paid annually and would apply to both new visa applicants and renewals.

However, White House Press Secretary Karoline Leavitt provided a clarification on Saturday, just hours before the new policy was scheduled to take effect.

"This is NOT an annual fee. It's a one-time fee that applies... only to new visas, not renewals, and not current visa holders," she explained in a social media post.

The executive order, which may face legal challenges, becomes effective Sunday at 12:01 am US Eastern time (0401 GMT), or 9:01 pm Saturday on the Pacific Coast.

Fact Sheet: President Donald J. Trump Suspends the Entry of Certain Alien Nonimmigrant Workershttps://t.co/k46jPq4pg5

— Karoline Leavitt (@PressSec) September 20, 2025

Before the White House clarification, US companies were urgently attempting to understand the implications for their foreign employees, with several reportedly advising their staff not to leave the country.

Some individuals already on planes preparing to depart on Friday disembarked due to concerns they might not be permitted to re-enter the United States, according to the San Francisco Chronicle.

"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," Leavitt stated.

"H-1B visa holders can leave and re-enter the country to the same extent as they normally would," she added.

H-1B visas allow companies to sponsor foreign workers with specialized skills — such as scientists, engineers, and computer programmers — to work in the United States, initially for three years but extendable to six.

Also Read | H-1B Visa: What Indian Students Need To Know About 1 Lakh Dollar Fee Hike

These visas are extensively utilized by the tech industry. Indian nationals represent nearly three-quarters of the permits allocated through the lottery system annually.

The United States approved approximately 400,000 H-1B visas in 2024, with two-thirds being renewals.

India, US business concerns

US President Donald Trump announced the change in Washington on Friday, arguing it would support American workers.

The H-1B program "has been deliberately exploited to replace, rather than supplement, American workers with lower-paid, lower-skilled labor," the executive order stated.

Trump also introduced a $1 million "gold card" residency program he had previewed months earlier.

"The main thing is, we're going to have great people coming in, and they're going to be paying," Trump told reporters as he signed the orders in the Oval Office.

Also Read | "Likely To Have Humanitarian Consequences": India On Trump Hiking H-1B Visa Fee

Lutnick, who joined Trump in the Oval Office, repeatedly stated that the fee would be applied annually.

"The company needs to decide... is the person valuable enough to have $100,000 a year payment to the government? Or they should head home and they should go hire an American," he told reporters.

Though he claimed that "all the big companies are on board," many businesses were confused about the details of the H-1B order.

Also Read | "Abuse Of H-1B Programme National Security Threat": Trump As He Hikes Visa Fees

US bank JPMorgan confirmed that a memo had been sent to its employees with H-1B visas advising them to remain in the United States and avoid international travel until further guidance was issued.

Tech entrepreneurs — including Trump's former ally Elon Musk — have cautioned against targeting H-1B visas, noting that the United States lacks sufficient homegrown talent to fill important tech sector job vacancies.

India's foreign ministry stated that the mobility of skilled talent had contributed to "innovation" and "wealth creation" in both countries and that it would assess the changes.

It said in a statement the new measure would likely have "humanitarian consequences by way of the disruption caused for families," which it hoped would be addressed by US authorities.