By Ananya Pattnaik

Copyright pragativadi

Officials clarified that the newly introduced $100,000 fee applies only to new applicants — not to existing visa holders or renewals — easing fears of mass disruptions in the technology sector.

Panic Erupted After Trump’s Proclamation

President Trump announced the fee hike on Friday in the Oval Office, framing it as a way to stop large corporations from “training foreign workers” at the expense of American jobs. The proclamation immediately set off alarms among tech companies, immigration lawyers, and H-1B visa holders, with many scrambling to advise employees abroad to return to the U.S. before the rule took effect at 12:01 a.m. ET Sunday.

Reports of companies urging foreign workers to cut short travel plans echoed the confusion seen during the 2017 travel ban rollout, with concerns about airport chaos and limited guidance from federal agencies.

White House Denies ‘Fake News’ Panic

By Saturday evening, the White House issued multiple clarifications to tamp down what it called “FAKE NEWS” spread by “corporate lawyers and others with agendas.”

A senior White House official — speaking on condition of anonymity — said the text of the proclamation clearly applies only to petitions that are “accompanied or supplemented by a payment of $100,000,” meaning it impacts only new filings in upcoming lottery cycles.

“The proclamation does not impact the ability of any current visa holder to travel to and from the U.S.,” the official said.

Key Clarifications from Officials

White House Press Secretary Karoline Leavitt posted on X that the fee would be:

One-time only: The payment is not annual and applies solely at the time of petition.

For new visas: It will not affect renewals or existing H-1B visa holders.

No travel restrictions: Current visa holders can leave and re-enter the U.S. “to the same extent as they normally would.”

Both USCIS and Customs and Border Protection (CBP) issued additional guidance late Saturday to ensure smooth implementation and reduce confusion.

Legal Challenges Expected

Despite the clarification, immigration lawyers have hinted at possible lawsuits, arguing that the original proclamation lacked clarity and created unnecessary panic.“It’s quite possible DHS may release guidance saying that it does not apply to everyone, despite what it says,” said Aaron Reichlin-Melnick, a senior fellow at the American Immigration Council, warning that official communication was urgently needed to avoid chaos.

Industry and International Reactions

Tech giants Microsoft, JPMorgan, and Amazon advised employees with H-1B visas to avoid international travel until the policy was clarified.

India, which accounts for the largest share of H-1B recipients, voiced concern. Randhir Jaiswal, spokesperson for India’s Ministry of External Affairs, said the government is assessing the measure’s implications and urged that “humanitarian consequences” — including disruptions to families — be addressed by U.S. authorities.

Political and Economic Fallout

The fee hike is expected to hit technology companies hardest, given their heavy reliance on foreign talent. Senator Mark Warner (D-Va.) warned the policy could undermine America’s long-term ability to attract skilled workers and harm its competitiveness.

Meanwhile, Sen. Chuck Grassley (R-Iowa) welcomed the move, suggesting it was a step toward long-awaited H-1B reform, though he acknowledged it would provoke backlash from tech companies and business lobbies.

Implementation Questions Remain

Although the White House has clarified the scope of the rule, questions remain about how agencies will process payments and enforce the proclamation on short notice. State Department officials confirmed they are working closely with the White House and other agencies but said visa adjudications will proceed as normal until final implementation guidance is issued.