The United States on Sunday clarified that the $100,000 fee for an H-1B worker visa will only be imposed on new applicants and does not affect those who already hold the permit.
White House Press Secretary Karoline Leavitt also stated that the fee was one-time and not annual.
H-1B visas allow companies in the US to temporarily employ foreign workers for special occupations.
The clarification came as the new rules took effect. Prior to this, companies were paying $215 to register for the H-1B visa lottery, in addition to several filing fees.
A day earlier, US Commerce Secretary Howard Lutnick said that companies would have to pay $100,000 annually for each H-1B visa.
Leavitt stated that the increased fee will “first apply in the next upcoming lottery cycle”.
“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,” she said.
The press secretary added that H-1B visa holders can “leave and re-enter the country to the same extent as they normally would; whatever ability they have to do that is not impacted by yesterday’s proclamation”.
About 85,000 new H-1B visas are issued every year.
Over the past few years, Indians have constituted the majority of H-1B visa holders. Indians comprised 72.3% of all H-1B visas issued by the US in the financial year 2022-’23.
On Saturday, India’s Ministry of External Affairs stated that the Donald Trump administration’s order asking companies to pay $100,000 for each H-1B worker visa is likely to have “humanitarian consequences by way of the disruption caused for families”.
“The government has seen reports related to the proposed restrictions on the US H-1B visa program,” the ministry said. “The full implications of the measure are being studied by all concerned, including by Indian industry, which has already put out an initial analysis clarifying some perceptions related to the H-1B program.”
The ministry added that it hoped the disruptions could be “addressed suitably by the US authorities”.
It further said that “skilled talent mobility and exchanges” have contributed to technology development, innovation, economic growth, competitiveness and wealth creation in the US and India.
“Policy makers will therefore assess recent steps taking into account mutual benefits, which include strong people-to-people ties between the two countries,” it added.
The Trump administration’s decision is being viewed as a setback to the technology sector in the US that relies heavily on foreign workers, especially from India and China.
Washington has repeatedly said that it was planning changes to the H-1B visa programme, saying that it was “terrible”.
During his first term, Trump had tightened rules on H-1B visas, citing “abuse” and “economic strain”.
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