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Following the Trump administration’s announcement on Friday that US companies looking to hire foreign workers will now have to pay a $100,000 fee to the government in order to acquire the visa, the H-1B visa has come under scrutiny. The US President signed a proclamation titled “Restriction on entry of certain nonmigrant workers,” which stated that although the H1B visa program was designed to allow temporary workers to enter the country to “perform additive, high-skilled functions,” it has been purposefully used to replace American workers with lower-skilled, lower-paid labor instead of enhancing them.

Employees of the top US IT corporations are now receiving caution notices. Employees with H-1B and H-4 visas have been recommended to stay in the United States by Amazon, the largest beneficiary of H1B visas. In a similar vein, Microsoft, one of the major recipients of H-1B visas, has advised H-1B and H-4 visa holders to remain in the US for the foreseeable future.

US commerce secretary said, “Either the person is very valuable to the company and America, or they’re going to depart, and the company is going to hire an American.” As the new rule comes into effect from September 21, 2025 and will remain valid for 12 months. “This restriction shall expire, absent extension, 12 months after the effective date of this proclamation, which shall be 12:01 a.m. eastern daylight time on September 21, 2025,” the proclamation says.

Employers in the United States may hire foreign workers for specialty occupations (those requiring at least a bachelor’s degree and highly specialized knowledge) under the H-1B non-immigrant visa. It is extensively utilized in fields including engineering, finance, and information technology. Beginning on September 21, US corporations will be required to pay an annual cost of $100,000 for the petition of a visa in order to hire new foreign workers. The Secretary of Homeland Security will determine whether or not a foreign worker with an H1B visa must pay the fees if they are already abroad and do not return by September 21. For this reason, the corporations are requesting that their employees who hold H1B visas remain in the United States or return before the ruling takes effect.