The executive order does not apply the fee to visas issued or renewed before the implementation date, according to White House clarifications aimed at assuaging widespread concern among foreign-nation tech workers. Companies say the rule could prevent re-entry if the required fee is not associated with the petition.
Microsoft’s internal memo advises all H-1B and H-4 visa employees already in the US to stay for the foreseeable future and urges those overseas to “return before the deadline” if possible. Amazon, likewise, has told affected workers outside the US to re-enter by the deadline and suggested those inside avoid travelling abroad until more detailed guidance emerges.
Commerce Secretary Howard Lutnick and other administration officials describe the fee as a corrective measure to ensure companies employing H-1B workers pay adequately and to discourage overreliance on lower-paid foreign labour. They argue it will enable the US Treasury to generate revenue and protect American worker wages. Critics, however, say the policy risks stifling innovation, damaging US competitiveness in technology, and creating severe uncertainty for employees who depend on transnational mobility.
Members of Congress, industry associations, and governments abroad have raised concerns over the speed of implementation and the impact on global talent flows. India, responsible for a substantial share of recent H-1B visa holders, has expressed alarm at potential disruption to its IT sector and professionals living abroad.