The H-1B visa program, which is popular among various industries for hiring skilled international workers, is especially crucial for the tech sector. For instance, Amazon employs about 14,000 H-1B visa holders, which is more than any other company, based on government data. Other major tech firms including Google, Meta, Microsoft, Apple, and Tata Consultancy each employ over 4,000 individuals under this visa.

The fee will impact new applicants and may face legal pushback. Nonetheless, companies are already reacting; for example, reports indicate that Microsoft and Amazon have issued internal notices urging employees on visas abroad to return to the US before the fee is implemented tonight. Microsoft has chosen not to comment on these internal communications or the proposed changes. Concerned about re-entry, tech firms are also advising visa holders not to leave the country.

The White House, when discussing attracting top talent, seems to focus on wealth instead of intelligence. It has announced a “gold card” system overseen by Commerce Secretary Howard Lutnick, set to replace the EB-1 and EB-2 visas, aimed at individuals with exceptional skills or advanced degrees. Now, applicants must demonstrate “exceptional value” by contributing $1,000,000.

This new gold card initiative would have potential immigrants pay $1,000,000 for a fast-tracked process, which could double if backed by a company. This approach seemingly prioritizes financial capability over qualifications. Although the Trump administration claims this will generate over $100 billion to help manage debt and decrease taxes, there is no evidence supporting these assertions.

Currently, with the national debt surpassing $37 trillion and projections of more than $2 trillion additional debt by 2025, any funds raised from the gold card scheme or H-1B fees will have minimal impact.

Updated September 20th: Added response from Microsoft.