Amazon and Microsoft urged H-1B and H-4 visa holders to stay in the US as Trump’s new visa rules take effect, imposing a $100,000 fee on applications. The policy aims to curb misuse, but may impact tech workers, especially Indians.
Amid sweeping changes to the US visa system, technology giants Amazon and Microsoft have advised their employees holding H-1B and H-4 visas to avoid leaving the United States. The companies reportedly issued internal communications to staff, urging them to either stay in the US or immediately return before new visa rules take effect.
According to Reuters, Amazon circulated an internal note to staff on Saturday, stressing that the safest step for foreign employees is to remain in the US. The company said that H-1B holders already in the country should stay, while those abroad should return before 12:00 AM EDT on September 21, when the new rules introduced by President Donald Trump will begin.
“If you have H-1B status and are in the US, stay in the country for now,” the Amazon note read. It further advised, “We recommend H-1B and H-4 visa holders return to the US before 12:00 AM EDT on September 21.”
Microsoft also issued a similar warning. In its internal email, the company told foreign employees that they should “stay in the US for the foreseeable future” and recommended that all H-1B and H-4 visa holders return before the deadline.
Trump’s new proclamation on visas
The warnings from Amazon and Microsoft come in response to a new proclamation from US President Donald Trump. The order, titled “Restriction on Entry of Certain Nonimmigrant Workers,” introduces a $100,000 annual fee on H-1B visa applications.
The new measure, effective from September 21, is described by the White House as a way to stop misuse of the H-1B programme. The administration argues that many companies, particularly IT outsourcing firms, have used H-1B visas to bring in cheaper foreign labour, displacing American workers and driving down wages.
The order states that the H-1B programme was originally designed to attract highly skilled foreign professionals, but that purpose has been ‘distorted’. According to the proclamation, low-wage, entry-level workers hired through H-1B have negatively impacted US graduates. It also cites national security concerns, pointing to investigations into visa fraud and money laundering involving firms dependent on the visa system.
Enforcement and exemptions
The new rules require employers to provide proof of payment when filing H-1B petitions. Enforcement will be managed by the US Departments of State and Homeland Security.
While most applications will now face the new $100,000 fee, the order allows for limited exemptions in cases deemed to be in the national interest. However, the proclamation does not clearly define which companies or roles may qualify for exemption.
White House defends policy
The White House insists that the policy is meant to protect American workers and ensure that only the “best and brightest” are brought to the US.
Will Scharf, White House Staff Secretary, defended the move, saying: “One of the most abused visa systems is the H-1B non-immigrant visa programme. This is supposed to allow highly skilled labourers who work in fields that Americans don’t work in to come into the United States. What this proclamation will do is raise the fee that companies pay to sponsor H-1B applicants to $100,000. This will ensure that the people they’re bringing in are actually very highly skilled and that they’re not replaceable by American workers.”
Voices from the administration
Howard Lutnick, US Secretary of Commerce, also backed the proclamation. He said that the current system made it cheaper for companies to train foreign workers instead of Americans.
“The whole idea is that no more will these big tech companies or other big companies train foreign workers. They have to pay the government $100,000, then they have to pay the employee. So it’s just not economic. If you’re going to train somebody, you’re going to train one of the recent graduates from one of the great universities across our land, train Americans, stop bringing in people to take our jobs. That’s the policy here. All of the big companies are on board,” he said.
Lutnick has also criticised the existing H-1B system in strong terms. In a recent post on X, he wrote: “The current H-1B visa system is a scam that lets foreign workers fill American job opportunities. Hiring American workers should be the priority of all great American businesses. Now is the time to hire American.”
What is the H-1B visa?
The H-1B visa is a non-immigrant visa that allows US-based companies to employ foreign workers in specialised fields. These jobs are usually in science, technology, engineering, mathematics (STEM), and IT and require at least a bachelor’s degree or higher.
Over the years, the H-1B programme has become especially important for the tech industry. Indian workers make up more than 70% of all approved H-1B petitions since 2015, making India the largest beneficiary of the programme.
Growing criticism of the programme
Critics of the H-1B programme say it is often misused to replace American workers. Florida Governor Ron DeSantis, for example, has repeatedly attacked the visa system.
Calling it a “total scam”, DeSantis argued during an interview on Fox News that many American workers are forced to train their H-1B replacements before being laid off. He said this practice “hurts American workers” and is unfair.
His view aligns with the Trump administration’s position that the visa system needs stricter rules and higher costs to discourage abuse.
Impact on companies and workers
The new fee of $100,000 per application could have a huge impact on companies, especially in the technology sector, which depends heavily on H-1B workers.
While large firms like Amazon and Microsoft may be able to afford the higher costs, smaller companies and outsourcing firms could struggle to hire foreign talent. Analysts believe this will reduce the number of H-1B applications filed each year.
The H-1B overhaul is part of a broader immigration strategy pursued by the Trump administration. It comes alongside other restrictions aimed at tightening the entry of foreign workers into the US.
(With ANI inputs)