President Donald Trump’s $100,000 fee for H-1B visas sowed mass confusion and panic among top U.S. companies overnight, forcing the White House to clarify the requirements.
On Saturday, press secretary Karoline Leavitt took to X to explain which visa holders the fee applies to and when.
“This is NOT an annual fee,” she said. “It’s a one-time fee that applies only to the petition.”
Leavitt added that existing H-1B holders currently outside the U.S. will not be charged $100,000 to come back, and that they can continue to leave and re-enter as they do right now.
Trump’s new H-1B policy also applies only to new visas, not renewals for current holders, she explained, noting that it will take effect in the next lottery cycle.
On Friday, Trump signed a proclamation that imposes a $100,000 fee for H-1B visas and announced a $1 million “gold card” visa that can serve as a pathway for wealthy investors to gain U.S. citizenship.
At the time, Commerce Secretary Howard Lutnick on Friday suggested the fee, which kicks in at 12:01 a.m. ET on Sunday, would be annual.
When asked if the policy applies to existing holders, he replied that companies with H-1B employees must ask “Is the person valuable enough to have a $100,000 a year payment to the government? Or they should head home and go hire an American?”
That caused U.S. tech giants, which rely heavily on H-1Bs, to warn employees with those visas against foreign travel.
Microsoft, Alphabet, Amazon and others told affected employees to return to the U.S. on Saturday and cancel any plans to leave the U.S.
“While we don’t have all the answers right now, we ask that you prioritize the recommendations above,” a message from Microsoft said, according to Bloomberg.
Top banks JPMorgan and Goldman Sachs sent similar messages to employees on H-1B visas, according to the Financial Times.
H-1B visas had previously been a divisive issue in Trump’s circle. Late last year, before falling out with the president, Elon Musk called for more highly skilled workers as did and fellow entrepreneur Vivek Ramaswamy. But MAGA hardliners have demanded that U.S. companies hire more American workers.
In a reply to a post taunting him about H-1Bs, the South African-born Musk hit back sharply.
“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,” he wrote in December. “Take a big step back and F–K YOURSELF in the face. I will go to war on this issue the likes of which you cannot possibly comprehend.”