The new H-1B visa rules for skilled nonimmigrant workers went into effect last weekend, generating ongoing questions about the future of the program.

President Donald Trump’s decision to introduce a $100,000 fee on new H-1B visa applications has led to widespread confusion among employers and foreign workers, resulting in White House clarifications and sparking discussions about the policy’s economic impact and legal validity.

The fee is a massive jump from previous costs of $2,000 to $5,000 per petition, according to the American Immigration Council.

What changed with the new H-1B visa rules?

White House officials rushed Saturday to clarify the policy as initial announcements left workers and employers uncertain about who would be affected by the new requirements.

“Those who already hold H-1B visas and are currently outside of the country right now will NOT be charged $100,000 to re-enter,” emphasized White House press secretary Karoline Leavitt in a post on X. “This applies only to new visas, not renewals, and not current visa holders.”

The fee is applicable solely to foreign nationals seeking entry using H-1B petitions filed on or after Sept. 21, 2025, according to a memorandum from U.S. Citizenship and Immigration Services and Customs and Border Protection. Current H-1B workers are exempt.

Commerce Secretary Howard Lutnick originally described the fee as an annual cost, but White House officials later clarified it as a one-time payment. The policy regarding renewals remains “under discussion,” according to an unnamed White House official who spoke to The Associated Press.

On Tuesday, the administration proposed a broader overhaul of the visa selection process to give high earners better odds, Politico reported.

The new policy, which is expected to expire in a year, could potentially be expanded if the government feels it’s in the best interest of the country to keep it.

The American Immigration Council reported that families were separated as H-1B holders rushed to return to the United States before the fee took effect, with some canceling vacation plans out of concern about reentry.

Are there any exemptions in the H-1B visa rules?

The Trump administration is considering exempting physicians from the fee following pressure from medical organizations, according to Bloomberg Law. White House spokesperson Taylor Rogers said Monday that “the Proclamation allows for potential exemptions, which can include physicians and medical residents.”

The American Hospital Association and other medical groups have warned that the fee could worsen health care shortages in rural areas, where H-1B visas help recruit doctors and specialists.

The American Medical Association and 53 leading medical societies have urged the U.S. Department of Homeland Security to exempt physicians, the groups said Thursday.

In a letter to the DHS, the groups urged the agency to issue guidance exempting physicians, residents and fellows from the proposed fee, arguing they are essential to sustaining a robust health care workforce in the country.

The American Medical Association said it is eager to collaborate with the administration to safeguard patient access to care.

“There’s no way that we can afford $100,000,” Karen Brady, chief executive of Ryther, a Seattle-based behavioral health nonprofit, told the BBC. Her organization currently employs two H-1B therapists who provide culturally specific services that Brady says cannot be replaced by American workers.

Tech industry bracing for impact from new H-1B visa rules

Major tech companies face the largest immediate impact. Amazon, the biggest H-1B sponsor with over 10,000 approved visas in fiscal 2025 along with Microsoft, Meta, Apple and Google employ thousands of H-1B workers.

“If you’re a startup with new technology, and you’ve got some venture capital money but you’re worried about burning through it too quickly, this could kill you,” John Skrentny, a University of California, San Diego professor who studies STEM workforce development, told the BBC.

Critics say the new rule undercuts U.S. workers despite the visa’s purpose helping companies fill openings for which American workers with similar abilities aren’t available.

In the 2024 fiscal year, computer-related occupations represented most of H-1B employment.

“We’re concerned about the impact on employees, their families and American employers,” said the U.S. Chamber of Commerce. “We’re working with the Administration and our members to understand the full implications and the best path forward.”

The H-1B program, created in 1990, allows employers to hire foreign workers with specialized skills and bachelor’s degrees for temporary stays up to six years. The annual cap is set at 85,000 visas, with 65,000 for general applicants and 20,000 additional visas for workers with advanced U.S. degrees.

About 700,000 people currently hold H-1B visas in the United States, according to National Foundation for American Policy analysis. Computer-related occupations account for approximately 65% of H-1B positions, with median salaries of $101,000 for new visa holders and $135,000 for experienced workers, according to Department of Homeland Security data.

The Trump administration has also proposed overhauling the lottery system to prioritize higher-paid workers, moving away from the current random selection process that critics say has been exploited by outsourcing companies seeking lower-wage workers.

Will the new H-1B rules get litigated?

Immigration attorneys and advocacy groups have signaled plans to challenge the policy in court, questioning both Trump’s authority to impose such fees and the $100,000 amount.

“Trump’s order is unprecedented, and it is unclear whether it is legally valid,” legal experts told Reuters. Federal law allows USCIS to collect fees only to cover administrative costs, and some argue the existing fee structure requires congressional authorization.

Trump invoked his authority under Immigration and Nationality Act Section 212(f) to restrict foreign nationals when “detrimental to the country’s interests.”

The Supreme Court upheld similar broad presidential powers in the 2018 case Trump v. Hawaii, but legal experts note that case involved national security concerns distinct from Trump’s economic justification.

Kathleen Campbell Walker, an immigration attorney with Dickinson Wright, described the policy as inserting “total chaos in existing H-1B process with basically a day’s notice” in a LinkedIn post.

Congress sends letter to major tech companies about H-1B applications

Senate Judiciary Committee Chairman Chuck Grassley, R-Iowa, and ranking member Dick Durbin, D-Ill., sent letters Wednesday to major H-1B employers, including Amazon, Apple and JPMorgan Chase, questioning their continued hiring of foreign workers amid layoffs.

“With all of the homegrown American talent relegated to the sidelines, we find it hard to believe that Amazon cannot find qualified American tech workers to fill these positions,” the senators wrote to Amazon CEO Andy Jassy, as reported by The Wall Street Journal.

The lawmakers requested detailed information about H-1B worker wages, employment numbers and whether American workers have been displaced, with responses due Oct. 10.

The Associated Press and Reuters contributed to this report.