H-1B $100,000 entry fee explained: Who pays, who’s exempt, and what’s still unclear?

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A White House decision to impose a $100,000 entry fee on H-1B visa holders has sparked alarm among Indian tech workers and students, the largest group using this route to the US.The measure, effective from midnight on September 21, applies to those entering America on H-1B visas, but exempts individuals already in the country who are extending or changing their status.The Indian Express spoke to immigration attorneys in the US to unpack its implications.Q. For those who already hold an H-1B visa stamp, will the $100,000 fee apply if they travel abroad and re-enter the US?There is no clear answer yet. Since the proclamation is still new, several aspects of its implementation remain uncertain, including whether H-1B holders with valid visa stamps will be charged the fee when re-entering the US.Texas-based immigration attorney Chand Parvathaneni told The Indian Express, “At this point, it is not explicitly clear,” though the language of the proclamation suggests it “more than likely” covers individuals outside the country trying to return. “Anybody that has a travel issue, more than likely, is going to be impacted.”Echoing this, Houston-based immigration lawyer Rahul Reddy said, “We will come to know on Sunday when people try to enter, because it’s going into effect on Sunday at midnight, 12:01.” He added that major tech companies have already sounded the alarm: “Amazon, Microsoft, they’ve all warned their employees not to travel.”Q. Is this a one-time fee or will people have to pay $100,000 every year?Reddy recalled, “When Trump was signing this executive order, they told that it was going to be every year. But when we look into the present proclamation, it says anytime a person is trying to enter into the United States, it is applicable.”Story continues below this adParvathaneni added, “It is a $100,000 annual payment, but again, this is only applicable when somebody travels out of the country and travels back in.” He also emphasised the lack of clarity: “How are they going to pay the Secretary of State? How are they going to pay the US government? Things are not clear at this point yet.”Q. For those already on an H-1B in the US who only need an extension, does the $100,000 fee apply?No. The fee does not apply to in-country status changes, extensions, or transfers.Parvathaneni explained: “If anybody is in the US and either they want to go through an H-1B transfer, they want to change their companies or they’re going through an extension process… as long as all these things are happening while somebody is in the U.S., these people are not impacted.”Reddy elaborated that the proclamation was carefully crafted to avoid areas where presidential authority is limited. “The administration does not have authority to change the rules of the H-1B. Only the Congress… has the authority. What the administration has authority is… anytime a person is entering into the country, it is a security issue.”Story continues below this adQ. Should current H-1B holders abroad rush back before September 21?If they haven’t already, it’s late already.“People can’t even travel back to the U.S. before the deadline,” Parvathaneni said, noting that the panic had already begun affecting international travel. “Yesterday… in San Francisco, a flight was delayed for three hours because people were in a panic.”Reddy was more direct: “Even if you take the flight right now… the Saturday evening flight will land Sunday morning there. We don’t know whether they will be held or sent back.”Also Read | With a $100k price tag on H1-B visas, is it the end of Indians’ American dream?Q. For F-1 students planning to change to H-1B while staying in the US, does the $100,000 fee apply?“As long as all these things are happening while somebody is in the US, these people are not impacted,” said Parvathaneni. Reddy echoed: “If you’re an F-1 student trying to convert into H-1B within the U.S., it’s not applicable.”Story continues below this adQ. What if an F-1 student outside the US gets selected in the H-1B lottery?In that case, yes — the $100,000 fee will likely apply. Parvathaneni said, “If somebody is outside the U.S. and the company is filing for a H-1B, they are supposed to pay a $100,000 fee right away.”Reddy contextualised the policy as one designed keeping specific recruitment models in mind. “This seems to be more targeted to Indian companies because mostly Indian companies recruit new people from India or outside the country.”Q. Are there any exemptions?Very few and the language is vague. Reddy explained, “They said if there is any national interest… they may exempt those individuals from this $100,000.” But what qualifies as ‘national interest’ remains undefined. “They could exempt healthcare people, like, for example, a physical therapist,” he added.Q. Could this push demand toward O-1, L-1 or other US visa categories?“If somebody is contemplating on going on L-1 as compared to the H-1B… definitely, they will not contemplate on H-1B because companies won’t be willing to pay that $100,000,” Reddy said.Story continues below this adHe explained the trade-offs: “If you go on an L-1 visa with a company X, and you want to change that to a different company though, you can’t. However, if you go on H-1B… you can change from company A to company B.” He also flagged a compliance risk: “The Department of Labor regulations say that any money that the company paid to the government fees cannot be collected from the individual.”Q. What are the long-term implications for international students hoping to build careers in the US?This could reshape the entire STEM immigration pipeline. “If this gets implemented in the current fashion, it is going to impact the technology industry and also the opportunities for the students,” warned Parvathaneni.Reddy agreed, but noted a short-term upside for current OPT students: “Now the pool is smaller… they probably will be celebrating right now.” However, he also acknowledged the broader cost: “A lot of these people, they work for years… with the hope that, okay, my company is going to take me to the United States on H-1B. Now, of course, they are not going to spend $100,000.”Q. What legal challenges are expected?Attorneys are already preparing cases. “This is what will happen,” said Parvathaneni. “More than likely, lawsuits are going to get filed because that’s already in progress. If courts issue a temporary restraining order, people will have some breathing space.”Story continues below this adReddy compared it to the 2017 Muslim travel ban: “They made it sound like a travel restriction. That way, they can argue that the presidential proclamation is good enough for this purpose, not a bill.”“They exactly tried to copy it in such a way because it’s going to be tested… It will be tested in the courts.” he added.Q. What is a proclamation, legally? Is it a final law?No, it is not legislation, but it does carry legal authority — until challenged. “A presidential proclamation is not a law,” explained Parvathaneni. “It is an order to federal agencies… As long as it is not an overreach of his powers, it is valid.”Reddy clarified further: “Only Congress has the authority to change the rules of H-1B… But they [Trump administration] are saying, ‘this is about security,’ which is where the president has authority.” Until courts weigh in, the proclamation stands, and students, workers, and companies will have to plan around it.