FILE PHOTO: A Boeing 737-823 operated by American Airlines takes off from the Reagan National Airport as U.S. flags flutter in Washington, U.S., November 23, 2024. REUTERS/Benoit Tessier/File Photo

By Jeff Mason

(Reuters) -A new $100,000 annual fee for H-1B visas in the United States goes into effect on Sunday, but it will not be applied to existing holders of valid visas re-entering the country, a White House official said on Saturday.

"This is a one-time fee," the official said.

The executive order imposing the new fee on H-1B visa applications, which was signed by President Donald Trump on Friday night, could disrupt the global operations of Indian technology services companies that deploy skilled professionals to the United States, Indian IT industry body Nasscom said early on Saturday.

The White House said the fee will not impact current visa holders re-entering the country or those renewing their visas.

The new fee structure will first apply to the upcoming H-1B lottery cycle for new applicants, and not to current visa holders or to renewals.

Friday's announcement sparked concerns among employees across swaths of corporate America. Companies, including Microsoft, Amazon and Alphabet advised some employees holding H-1B visas to remain in the U.S., according to internal emails reviewed by Reuters.

On the popular Chinese social media app Rednote, many H-1B holders shared stories of rushing back to the U.S. — some just hours after landing abroad — fearing they will be subject to the new $100,000 fee.

(Reporting by Jeff Mason in Washington; Additional reporting Rajveer Singh Pardesi in Bengaluru; Editing by Leslie Adler and Marguerita Choy)