US President Donald Trump on Friday signed an executive order radically overhauling the H-1B visa program, imposing a new USD 100,000 fee on applications for skilled worker visas.
The move, quickly dubbed the “USD 100K Visa Bombshell,” sent shockwaves through the global tech industry, particularly in India, which accounts for the majority of H-1B recipients annually. Leading Indian IT firms and thousands of skilled professionals were left scrambling with dire warnings that those outside the US needed to return immediately or risk being stranded due to the order taking effect at midnight on September 21, 2025.
What the announcement stated
Trump’s executive order specifically mandated that all new H-1B petitions must be accompanied by a USD 100,000 payment in order to be considered valid.
The proclamation cited “national security threats” posed by alleged abuses in outsourcing and claimed that US workers were being replaced by lower-paid foreign labour.
American companies such as Microsoft, Amazon, and Meta issued urgent advisories to affected employees, warning them to curtail travel and prepare for immediate compliance with the new rules. Immigration lawyers and advocacy groups decried the lack of clarity in the order, which failed to specify whether the fee applied to current visa holders, renewals, or only to new applications.
Panic and corporate backlash
Within hours, panic ensued among the tech workforce and their families. Advisories from major corporations, legal experts, and university offices urged H-1B holders abroad to return to the US before the deadline, while some postponed travel altogether.
Large Indian IT associations as well as the government expressed deep concern, warning that such abrupt policy changes could severely disrupt ongoing projects, create humanitarian issues for families, and undermine the mutually beneficial talent pipeline between India and the US.
White House clarification
Amid the chaos, the White House released a series of clarifications to tamp down corporate and individual panic.
- Officials clarified that the USD 100,000 fee is a one-time charge applied only to new H-1B visa petitions filed after September 21, 2025.
- The fee does not affect current visa holders, renewals, or anyone who participated in the recent visa lottery cycle.
- Existing H-1B holders, as well as their families currently abroad, do not need to rush back or worry about paying the exorbitant fee to re-enter the country.
- The ability to travel in and out of the US remains unchanged for them, and the clarification was reiterated in a ‘factsheet’ from the White House and on official social media channels.