Thousands of Indian and other foreign workers who dream of working in the US technology sector and are currently working there were hit by a major and unexpected disaster on Friday, September 19, 2025. President Donald Trump signed a proclamation to implement a drastic and shocking change in the H-1B Visa program. Under this new rule, an annual fee of $100,000 (one hundred thousand dollars) will be charged for H-1B visa applications. The announcement came as a major blow not only to visa applicants, but also to the world’s largest tech companies like Amazon and Microsoft.
With less than 48 hours to implement this decision, an atmosphere of fear and uncertainty spread among thousands of employees in the US and abroad. Following this unprecedented announcement, internal memos sent by Amazon and Microsoft to their employees have come to light, which show the severity of the situation and the desperation of the companies..
What is an H-1B visa and why is it so important?
The H-1B visa is a non-immigrant visa that allows American companies to hire foreign skilled workers in ‘specialty occupations’. These occupations generally include fields such as engineering, information technology (IT), finance, medical and scientific research, which require higher education and specialized knowledge.
Companies such as Google, Microsoft, Amazon, Facebook (Meta) and Apple rely heavily on the H-1B visa for their technical and research-based positions. Since there is not enough skilled labor available in the United States, these companies use this visa to attract the best talent from around the world.
The H-1B visa is a major way for Indian IT professionals and engineers to work and settle in the United States. More than 70% of the total H-1B visas issued every year are granted to Indian citizens. Therefore, any change in the rules of this visa directly affects Indian professionals.
Trump administration's new tax rule dramatically increases H-1B Visa $100,000 Fee
On Friday, September 19, 2025, the Trump administration made a radical decision to shake up the visa system. It will require companies to pay an annual fee of $100,000 for each new or renewed H-1B visa petition. This fee is a huge increase from the previous fee of a few thousand dollars. And the rule was announced to take effect on Sunday, September 21, 2025, at 12:01 a.m. (EDT). This means that companies and workers have less than two days to respond.
And the rule is not just a fee, it is a ‘travel restriction’. This means that after the Sunday deadline, individuals whose petitions have not paid the huge fee associated with them will be prohibited from entering or returning to the United States on H-1B status.
The decision is a kind of financial attack on workers working on H-1B visas and the companies that employ them. The $100,000 fee is unaffordable for many small and medium-sized companies, making it nearly impossible for them to hire foreign workers.
Urgent memos from Amazon and Microsoft cause panic among employees
Immediately after the announcement, companies like Amazon and Microsoft sent urgent emails and memos to thousands of their H-1B visa holders. The memos, obtained by Business Insider, illustrate the seriousness of the situation and the urgent advice the companies are giving.In a memo sent to its Amazonians, Amazon gave clear and direct instructions to those in the US, saying, “If you have H-1B status and are currently in the US: Stay in the country. Even if you have plans to travel in the near future, avoid traveling.”And for those outside the US, “If you are outside the US, please try to return to the US before tomorrow’s (Saturday) deadline if possible. We know this notice comes at a very short notice, but you should make every effort to clear US customs before 12:00 am (EDT) on Sunday, September 21.”
The Trump administration’s decision to impose a $100,000 fee on H-1B visas is not just an economic change, it is an earthquake in US immigration policy, the future of the technology industry, and the lives of thousands of Indian professionals. Memos sent to employees by companies like Amazon and Microsoft reflect the intensity of the first tremors of this earthquake. The decision has cast a cloud of fear and uncertainty over many skilled workers who dream of the American Dream and are living it. Now what is the legal and political solution to this,
For H-4 visa holders Although the announcement does not explicitly mention H-4 visa holders (spouse and children of H-1B holders), Amazon recommended that they also remain in the US.
Microsoft's Memo:
Microsoft also gave similar advice to its employees. They gave clear instructions in their memo, “If you are in the US on H-1B status, you should remain in the US for the foreseeable future… Remaining in the US is the most important thing to avoid being denied re-entry.”
And for employees outside the US, “If you are currently outside the US… we strongly recommend that you do everything you can to return before the deadline, and if you are unable to return, please fill out this form to let us know your situation. We will follow up and support each individual.” This shows how proactive Microsoft is in helping its employees.
At the same time, Microsoft clarified that this announcement will not have any impact on other visa statuses such as L-1 and TN, so as to avoid misunderstandings.
Reason behind this decision and possible consequences
The Trump administration is said to have taken this decision to ‘protect the interests of American workers’. This is part of their “Buy American, Hire American” policy. The idea is that imposing such a hefty fee will discourage companies from hiring foreign workers and instead hire American citizens. But according to tech industry experts, this could have the opposite effect: There won’t be enough skilled workers in the US for many specialized technical positions. The rule will widen this gap and reduce the ability of American companies to innovate and compete globally. And if companies can’t afford to hire foreign workers in the US, they may move their offices and jobs to countries like Canada, India or Europe, where they can find more skilled workers. This could reduce jobs in the US instead of increasing them.
Billion-dollar companies like Amazon and Microsoft might be able to pay the fee, but it’s nearly impossible for small startups and mid-sized companies. This would be a major obstacle to the growth of new startups in the US.
After this shocking announcement, everyone’s attention is on what will happen next. Several business organizations in America, such as the US Chamber of Commerce and the Immigration Lawyers Association, are likely to challenge this decision in court. According to them, the President has abused his powers and the rule is illegal. It will be important to see whether big tech companies will bear the burden of this fee or reduce the number of their H-1B employees.
The fate of employees who were unable to return to the United States before the deadline will depend entirely on the outcome of their companies and a possible legal battle.