U.S. President Donald Trump on Friday, September 19, signed an executive order introducing a $100,000 annual fee for each H-1B visa.
The measure is set to take effect on September 21 and is already drawing strong reactions from the technology sector.
According to an internal email reviewed by Reuters, Microsoft has told its employees on H-1B and H-4 visas to return to the United States immediately before the deadline.
The company wrote: “H-1B visa holders should stay in the US for the foreseeable future. Also recommend H-4 visa holders remain in the US. Strongly recommend H-1B and H-4 visa holders return to the US tomorrow before the deadline.”
At the Oval Office signing, Trump said the new measure would not hurt companies: “I think they’re going to be very happy.”
U.S. Commerce Secretary Howard Lutnick told reporters the purpose was to encourage firms to employ American graduates: “If you’re going to train somebody, you’re going to train one of the recent graduates from one of the great universities across our land. Train Americans. Stop bringing in people to take our jobs.”
White House staff secretary Will Scharf called the H-1B visa “one of the most abused visa systems”. He said the higher fee would ensure that employers bring in workers who are “actually very highly skilled and not replaceable by American workers.”
The H-1B program is widely used by U.S. companies to recruit foreign professionals in technology, engineering, education and healthcare. Government figures show about two-thirds of H-1B jobs are in computer-related fields.
Critics argue that the program can suppress wages and disadvantage American workers, while supporters such as Tesla chief executive Elon Musk have defended it as vital for attracting global talent. Musk himself once held an H-1B visa before becoming a U.S. citizen.
The sharp rise in fees is a major policy shift. Technology companies, which rely heavily on skilled workers from India and China, now face a steep annual cost for every H-1B employee they employ.
At a White House briefing, Lutnick said: “A hundred-thousand dollars a year for H-1B visas, and all of the big companies are on board. We’ve spoken to them.”
The order has immediate consequences: Microsoft’s travel warning to foreign staff underlines the urgency with which firms are responding ahead of the September 21 deadline.
