What you need to know about changes to the H-1B visa program

Friday’s announcement by the Trump administration that it would charge companies $100,000 for H-1B visas set off a series of panicked moves by many companies, who hurried to recall visa-holding workers to the U.S. amid conflicting information about what the executive order would mean .

Commerce Secretary Howard Lutnick on Friday appeared to say the policy would apply to both new and existing visa holders. On Saturday, the White House clarified it would only impact future H-1B visas. Still, Big Tech companies strongly encouraged workers with H-1B visas to not leave the country or to return immediately if they were on the road.

The confusion is still swirling for some business owners. Here’s what you need to know.

An H-1B visa lets U.S.-based companies hire workers from overseas who have specialized knowledge in areas like technology or healthcare without those employees having to apply for citizenship. The visas typically are good for six years, though they’re initially issued for three year periods. They also come with requirements — the visa holder must have at least a bachelor’s degree, for example — and can not be used for permanent residency.

The program was established under the Immigration Act of 1990. The majority of H-1B visas are issued for “computer-related” jobs (i.e. computer scientists, engineers, and analysts). As of 2023, 65% of H-1B visas were in that field.

There’s no exact count available, but FWD.us, the advocacy group co-founded by Mark Zuckerberg, estimates there are as many as 730,000 H-1B holders in the U.S., with an additional 550,000 dependents

Before Friday’s announcement, the cost of an H-1B visa rarely exceeded $5,000, typically hovering between $1,700 and $4,500, depending on whether the company expedited the visa.

There’s still some confusion over that, but the White House on Saturday said the changes only apply to new visas. Renewals, current visa holders or 2025 lottery winners would not be impacted.

The White House clarification also said the new policy will not affect existing visa holders’ ability to travel to and from the U.S. Many businesses are still telling visa holders to stay in the U.S. until things have settled somewhat. Microsoft reportedly told employees : “If you are in H-1B status and are in the U.S., you should remain in the U.S. for the foreseeable future.”

While Lutnick’s comments made it sound like companies would have to pay $100,000 for each H-1B annually, the White House now says it is a one-time fee.

For some Big Tech companies, it could be a considerable amount. Amazon has 10,044 H-1B workers, according to U.S. Citizenship and Immigration Services . That could work out to over $1 billion in charges, should it replace those workers with over H-1B visa holders in the years to come. Microsoft, meanwhile, has 5,189 employees with an H-1B visa. Meta has 5,123. Apple has 4,202 and Google has 4,181.

That’s the million (perhaps billion) dollar question. Matthew Kolodziej, a partner at Jia Law Group, wrote on LinkedIn “this is an unprecedented use of executive power that appears to violate the [Administrative] Procedures Act and will likely be challenged in court.”

If it does face a legal challenge, that could delay its enforcement. If the courts uphold the order, however, that could be a notable restriction to one path of legal immigration. (While H-1Bs cannot be used for permanent residency, holders often pursue a Green Card, allowing them to become a permanent resident during the period they are working in the U.S.)

Attorneys who specialize in immigration say they aren’t sure what to expect should this proclamation stand, but it makes them nervous.

“You haven’t heard clear guidance from immigration attorneys because currently – there isn’t any. There is only confusion,” said immigration attorney Alexandra Law on LinkedIn . “What we have available to us at the moment is conflicting and can be interpreted in multiple ways. … Here is what we do know. In the chaotic rollout and backtracking, there seems to be ample room for legal challenges.”