Trump’s H-1B visa fee hike sparks tech industry chaos

President Donald Trump’s new visa fees, announced on Friday, caused panic across major tech companies. Several firms reportedly sent urgent memos to their H-1B visa employees, urging them to stay in the US or return before Sunday.

What happened?
Trump’s proclamation raised the H-1B fee from $215 to $100,000 starting this week. The announcement immediately affected major tech companies, including Amazon, Google, Microsoft, Tesla, Meta, and more. 

They reportedly sent emails warning employees under such visas.

Soon, the White House confirmed the fee applies only to new applications, not existing visas, limiting near-term financial strain for the tech giants.

Additionally, Trump’s order leaves room for flexibility. The Department of Homeland Security can grant exemptions based on national interest, and the fee requirement lasts just 12 months, unless extended.

However, analysts believe the H-1B visa fee change could fundamentally affect how US companies, especially tech firms, hire foreign talent.

Amazon has been the largest recipient of H-1B visas this fiscal year, followed by Tata Consultancy Services (TCS), Microsoft, Meta, Apple, and Google. Indian nationals hold 71% of all H-1Bs.

For firms like JPMorgan, the new visa fee cost would amount to just 0.4% of annual profit, while for TCS it could reach 10%, according to Reuters.

To reduce the cost of sponsoring employees, companies are expected to expand offshoring to countries such as India, the Philippines, and Mexico. They could also accelerate the adoption of AI to reduce dependence on foreign workers.