On Friday, President Donald Trump announced a new fee of $100,000 for H-1B visas, which are designed for skilled technology workers. This fee, a significant increase from the previous $215, is set to take effect at 12:01 a.m. local time on Sunday. The announcement caused immediate concern among major tech companies, including Microsoft, JPMorgan, and Amazon, prompting them to advise employees on H-1B visas to either remain in the U.S. or return quickly if they were abroad.

The White House later clarified that the fee would only apply to new applicants and not to those who already hold H-1B visas. White House press secretary Karoline Leavitt stated, "Those who already hold H-1B visas and are currently outside of the country right now will NOT be charged $100,000 to re-enter. This applies only to new visas, not renewals, and not current visa holders."

The confusion arose when U.S. Commerce Secretary Howard Lutnick initially indicated that the fee would be an annual cost for companies. However, a White House official later described it as a one-time fee. The official, who spoke on the condition of anonymity, acknowledged that the fee does not currently apply to renewals but noted that this policy is under discussion.

In response to the announcement, companies like Microsoft and JPMorgan sent internal communications urging H-1B visa holders to avoid international travel until further guidance is provided. An email from Ogletree Deakins, a firm that handles visa applications for JPMorgan, advised employees to remain in the U.S. and return before the new fee structure took effect.

The Indian government expressed concern over the fee increase, stating it could significantly impact the ability of tech workers from India and other countries to work in the U.S. India's Ministry of External Affairs indicated that the situation was being closely monitored and warned of potential humanitarian consequences for families affected by the changes.

Kathleen Campbell Walker, an immigration attorney, criticized the abrupt announcement, stating it created "total chaos in the existing H-1B process with basically a day's notice." She emphasized that the changes could disrupt the lives of many skilled workers and have a broad impact on American businesses.

Historically, H-1B visas have been allocated through a lottery system, with Amazon being the largest recipient this year, receiving over 10,000 visas. Critics of the H-1B program argue that it undermines American workers by allowing companies to hire foreign workers at lower salaries, often for entry-level positions rather than roles requiring specialized skills.

Trump's announcement also included plans for a new "gold card" visa, which would cost $1 million and provide a path to U.S. citizenship after vetting. Additionally, a "Trump Platinum Card" is proposed at $5 million, allowing foreigners to stay in the U.S. for up to 270 days without being subject to U.S. taxes on non-U.S. income. The platinum card would require congressional approval, while the gold card and new H-1B fees could be implemented by the president.

The U.S. Chamber of Commerce expressed concern about the implications of the new fee on employees and American employers, stating, "We're concerned about the impact on employees, their families and American employers. We're working with the Administration and our members to understand the full implications and the best path forward."

As the situation develops, many in the tech industry are left to navigate the uncertainty surrounding the new visa fee and its potential effects on the workforce.