H-1B Visas Have Been Transformed. Here’s What You Need to Know About the Changes 

The Trump Administration said Friday it would charge companies $100,000 per year for H-1B visas, a move that created uncertainty for current visa holders and will likely hamper the ability of American tech companies to hire skilled workers from around the world.

The new policy comes amid an aggressive effort by the administration to crack down on both illegal and legal immigration to the United States. It was unveiled on the same day as President Donald Trump rolled out a “gold card” that would grant U.S. residency for those willing to pay $1 million.

Commerce Secretary Howard Lutnick said the measure was aimed at pressuring companies to train American workers for high-skilled jobs covered by the visa, rather than bringing in talent from abroad.

"If you're going to train somebody, you're going to train one of the recent graduates from one of the great universities across our land. Train Americans. Stop bringing in people to take our jobs," he said Friday.

Read more: How ICE’s Raid on Korean Workers in Georgia Demonstrates Trump’s Clashing Priorities

The Trump Administration clarified on Saturday that the fee only applies to new visas and not to current visa holders or to renewals, Reuters reported, citing a White House official.

India, whose citizens make up some 71% of H-1B visa holders, said the abrupt policy change “is likely to have humanitarian consequences by way of the disruption caused for families.”

“Skilled talent mobility and exchanges have contributed enormously to technology development, innovation, economic growth, competitiveness and wealth creation in the United States and India," the Foreign Ministry said in a statement on Saturday. It added that the Indian government "hopes that these disruptions can be addressed suitably by the U.S. authorities.

The H-1B visa is a temporary, non-immigrant work visa that requires at least a bachelor's degree and allows U.S. employers to hire foreign workers in specialty occupations such as technology, engineering, education, healthcare and finance. It previously cost between $1,700 and $4,500 and initially lasts for three years, but can be extended for up to six.

Supporters of the crackdown on the H-1B visas say the program takes away highly paid jobs from American workers. But experts warn the changes could deal a blow to the tech industry as it faces high costs to adapt to the new rules, and may deter global talent from coming to the United States. And some of President Trump’s key backers are opposed to the restrictions.

Elon Musk, a former advisor to the president and former holder of the visa, previously advocated for the visa program. “The reason I’m in America along with so many critical people who built SpaceX, Tesla and hundreds of other companies that made America strong is because of H1B,” Musk said on X in December 2024.

Trump’s Presidential Proclamation on Friday argued that the visa had been “deliberately exploited” by companies.

"The large-scale replacement of American workers through systemic abuse of the program has undermined both our economic and national security," it continued.

The announcement caused chaos and confusion for current H-1B visa holders. Several companies that utilize the visa rushed advice to their employees to stay in the U.S. or return here on Friday and Saturday. According to Reuters, companies including Microsoft, JP Morgan and Amazon sent memos to employees holding H-1B visas to remain in the United States, even if they had planned travel outside of the United States.

The potential bill for those companies going forward could be in the billions of dollars. According to federal filings, Amazon employed nearly 15,000 workers utilizing H-1B visas in 2024.

Lutnick said he had the support of American businesses for the move on Friday, saying: “Tech companies are on board, we’ve spoken to them."

But the legality of the move has been questioned.

Senior legal fellow at the American Immigration Council Aaron Reichlin-Melnick said on BlueSky that Trump has “literally zero legal authority to impose a $100,000 fee on visas. None. Zip. Zilch.”

“The only authority Congress has ever given the executive branch here is to charge fees to recover the cost of processing the application,” he continued.

Douglas Russo, an immigration lawyer, wrote in a widely shared LinkedIn post on Friday that he expected “swift” litigation against the order, but says nothing is guaranteed.

"I hate to say this, but if you are an H-1B worker outside the U.S. who already has an H-1B visa, the safest approach is re-entering before Sunday," he wrote.

India is the top country for H-1B visas, according to official data from U.S. Citizenship and Immigration Services, accounting for close to three-quarters of approved visa holders last year. China accounts for around 11% of H-1B visas, according to U.S. government data.

Holders of H-1B visas are eventually eligible for green cards. There are currently around 700,000 people living in the United States on H-1B visas, according to a National Foundation of American Policy analysis of government data.