Will Trump’s $100K H-1B fee apply to visa holders re-entering the US? Here’s what to know

US President Donald Trump has signed an executive order introducing a $100,000 annual fee for new H-1B visa applicants, citing “abuse” of the program. The order, set to take effect on 21 September, has raised alarm among companies and visa holders alike. Experts and corporate advisers warn that the fee could make some foreign talent prohibitively expensive to hire.

Will Donald Trump’s $100,000 H-1B fee hike apply to workers re-entering the US?(REUTERS)

US Commerce Secretary Howard Lutnick explained, “The company needs to decide… is the person valuable enough to have a $100,000-a-year payment to the government, or they should head home, and they should go hire an American. All of the big companies are on board.”

Since 2004, H-1B applications have been capped at 85,000 per year. Administrative fees until now have totaled around $1,500 per visa. USCIS data shows applications for the next fiscal year dropped to about 359,000, a four-year low. Amazon was the top beneficiary last year, followed by Tata, Microsoft, Meta, Apple, and Google, as per the BBC.

H-1B fee apply on re-entry?

The most pressing question: what about workers already in the US or those temporarily abroad? BBC and Business Insider report that Amazon advised H-1B employees currently overseas to “try to return before deadline if possible.” Anyone unable to make it back before the order takes effect is cautioned to avoid attempting US re-entry “until further guidance is provided.”

If an H-1B worker or their H-4 dependent leaves the U.S. and then tries to re-enter after 21 September, border officials may treat it as a new entry application. That could trigger the new fee and additional scrutiny, hence several tech companies have warned their workers to restrict international travel.

Industry bodies are concerned as India’s Nasscom called the one-day deadline “considerable uncertainty for businesses, professionals, and students across the world.” India accounted for 71% of H-1B approvals last year, with China second at 11.7%, reports BBC.

Impact on companies and talent

According to the BBC, immigration lawyers warn of a steep cost for small businesses and startups. Tahmina Watson of Watson Immigration Law said the $100,000 fee could be a “nail in the coffin” for many clients. Jorge Lopez of Littler Mendelson added that the fee “will put the brakes on American competitiveness in the tech sector and all industries.” Some firms might even consider shifting operations abroad.

Also read: H-1B visa fees news live updates: Firms tell workers to return to the US asap, MEA issues statement

The H-1B debate has long split opinion in the US, with supporters citing access to top talent and critics pointing to domestic job concerns. Trump himself acknowledged both sides, noting in 2017 that a pool of skilled workers is crucial to keeping companies competitive.