US tech firms urge H-1B, H-4 visa holders to return before $100,000 fee kicks in

US tech firms like Microsoft have urged H-1B and H-4 visa holders abroad to return before the September 21 deadline when the $100,000 annual fee takes effect. The rule could increase costs and impact Indian professionals in US tech companies.

New Delhi: US tech films like Microsoft have advised employees with H-1B and H-4 visas, who are currently outside the United States, to return immediately — ahead of the September 21 deadline set by President Donald Trump when the $100,000 fee on H1-B visa comes into effect.

The US administration has imposed a $100,000 annual fee on each visa. The new rule will take effect on September 21 and remain in force for 12 months, the US President said.

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According to reports, companies like Microsoft and JPMorgan have instructed H-1B workers currently in the US to continue their employment in the country “for the foreseeable future” and avoid international travel until further guidance,

Microsoft has also reportedly recommended H-4 visa holders to remain in the US. “We strongly recommend H-1B and H-4 visa holders return to the US tomorrow before the deadline,” according to the company.

There was no official statement yet from either Microsoft or JPMorgan.

President Trump expects the revised fee-based visa programme to generate over $100 billion for the US Treasury, designated for national debt reduction and tax cuts. Critics, however, argued that the new fee hinders talent mobility and stifles innovation.

Approximately 71 per cent of H-1B visa holders are from India, primarily working for technology companies including Infosys, Wipro, Cognisant, and Tata Consultancy Services.

Shares of major IT services firms, including US-listed Indian companies, dropped by 2 per cent to 5 per cent following the announcement.

With visas typically valid for three years and renewable up to six, the new $100,000 annual fee could make it expensive for companies to retain Indian professionals, especially given the decades-long wait for Green Cards.

The H-1B programme allows US companies to hire skilled foreign workers in fields like technology and engineering.