A new $100,000 fee for H-1B visas goes into effect Sunday, but it will not be applied to existing holders of valid visas re-entering the country, a White House official tells Axios.
Why it matters: President Trump's executive order, as written, gave some lawyers the impression the fee would kick in immediately for existing holders — prompting panicked advice to clients to get back to the U.S. Saturday, or else.
Catch up quick: Friday night, Trump signed an order requiring an H-1B holder, or their corporate sponsor, to pay an annual $100,000 fee for their visa.
- For the biggest H-1B employers — tech companies like Microsoft and Amazon, and outsourcing companies like Cognizant — that could potentially mean a new fee burden in excess of $1 billion a year.
The intrigue: The rules kick in at 12:01 a.m. ET Sunday, but as written, some lawyers argued it appeared the fee would apply to anyone with an H-1B, even those whose visa was already approved, but who happen to be outside of the United States for some reason.
- Some tech companies reportedly told their H-1B employees to get back to the U.S. by Saturday and not leave thereafter.
- "I hate to say this, but if you are an H-1B worker outside the U.S. who already has an H-1B visa, the safest approach is re-entering before Sunday," immigration lawyer Douglas Russo said in a widely commented post on LinkedIn late Friday.
Yes, but: That is not the case, the White House official tells Axios.
- The fee will only apply to new applicants, not existing holders or renewals, the official said.
- It will first apply in the upcoming lottery cycle for new applicants, the official added.
The big picture: While Trump's crackdown on border crossings has gotten the lion's share of attention, the fight over H-1B visas for highly skilled workers has been in many ways an equally contentious part of his immigration policy.
- Traditional MAGA allies like Steve Bannon say U.S. employers are using H-1Bs to bring in tech workers to take American jobs at a fraction of the cost.
- Newer Trump allies from Silicon Valley, on the other hand, say H-1Bs are crucial for bringing the world's best talent to America.
For the record: "President Trump promised to put American workers first, and this commonsense action does just that by discouraging companies from spamming the system and driving down wages. It also gives certainty to American businesses who actually want to bring high-skilled workers to our great country but have been trampled on by abuses of the system," White House spokeswoman Taylor Rogers said in a statement.
What to watch: It's unclear if any existing H-1B holders will run into any issues traveling after Sunday.
