Microsoft reacts to President Trump’s shocking $100K H-1B visa fee — “creating anxiety and uncertainty”

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Microsoft, Amazon, and Google, among other major tech firms, quickly worked over the weekend to advise their employees about the new $100,000 fee for H-1B visas announced by former US President Trump.

President Trump signed an executive order on Friday, September 19th, and it took effect two days later, on Sunday, September 21st.

Microsoft promptly informed employees impacted by the situation with a memo released on Saturday. The memo, shared internally and reported by Business Insider, instructed H-1B visa holders currently in the US not to leave the country.

The guidance for H-1B workers who were outside the United States when the proclamation took effect is causing a lot of anxiety.

Microsoft

Even though President Trump’s policy didn’t cover H-4 visa holders (dependents of workers), Microsoft still advised those employees to stay in the United States.

Microsoft says the recent proclamation won’t affect people with visas like the L-1 and TN.

Microsoft acknowledges that these changes are causing worry and confusion for many people, and encourages everyone to follow the advice provided, even though the company doesn’t have all the solutions yet.

Amazon and Google have also issued similar statements, highlighting how crucial H-1B visas are for the tech industry, which depends on talented workers from other countries.

Confusion surrounding Trump’s H-1B visa executive order

The announcement of new H-1B visa plans by President Trump and Commerce Secretary Howard Lutnick at Friday’s press conference led to widespread confusion.

When I first heard about the executive order, it looked like anyone with an H-1B visa could be facing a $100,000 annual fee. I was also concerned that it would impact people already outside the US when the order went live – basically, anyone not currently *in* the country on an H1-B at that moment.

I saw that White House Press Secretary Karoline Leavitt posted on X Saturday afternoon, clarifying something that had been causing a lot of worry. It came after memos from tech companies were already circulating and people with H-1B visas were trying to book flights home. She said the reports about a $100,000 fee to re-enter the US weren’t true, and anyone *already* with an H-1B visa who was traveling wouldn’t be charged anything.

Just to clarify: 1) This is a one-time fee specifically for the petition, not a yearly charge. 2) H-1B visa holders who are currently outside the US will not need to pay $100,000 to return. They are free to leave and re-enter the country until September 20, 2025.

Interestingly, a community correction has been added to Leavitt’s post, noting that Lutnick stated during a White House meeting this was a yearly charge.

Breaking down the White House’s new H-1B visa restrictions

The H-1B visa program, established in 1990, allows temporary workers to come to the US, but it doesn’t provide a path to permanent residency.

As an analyst, I’ve observed that companies have consistently utilized H-1B visas to bring in skilled foreign workers when they’ve struggled to find qualified American candidates to fill specific positions. Essentially, it’s a way to address workforce gaps.

Each year, the U.S. makes 65,000 visas available to workers who have a bachelor’s degree, and another 20,000 for those with advanced degrees. These visas are typically granted for three to six years.

According to a White House press release explaining the proclamation:

The widespread misuse of the H-1B visa program has harmed both the U.S. economy and national security. Many employers are now using this program to drive down wages, creating an unfair job market for American workers. This also makes it harder to attract and keep the most talented temporary workers, particularly in important fields like science, technology, engineering, and math (STEM).

Before President Trump issued an executive order over the weekend, applying for an H-1B visa involved two fees: a $215 filing fee and a $780 fee paid by the employer when they submitted the visa request to the government.

Microsoft indirectly called out in the White House’s official proclamation

From what I’ve seen, Amazon looks like it will have received the most applications for H-1B visas in 2025, though Microsoft is right behind them in second place. The official statement from the White House didn’t explicitly state which companies were applying, but it was pretty clear who they were referring to.

Several tech companies have been approved to hire thousands of foreign workers through the H-1B visa program while simultaneously reducing their American workforce. One company received approval for over 5,000 H-1B workers for 2025, but also announced layoffs affecting more than 15,000 employees. Another firm was approved for nearly 1,700 H-1B visas and subsequently laid off 2,400 workers in Oregon. A third company has cut around 27,000 American jobs since 2022, while also receiving approval for over 25,000 H-1B workers during that same period. And a fourth company eliminated 1,000 positions in February, after being approved for over 1,100 H-1B workers for 2025.

I was really surprised to see that one company approved for so many H-1B visas – it turns out it’s Microsoft! It’s kind of ironic, because they actually had a big round of layoffs in 2025, letting over 15,000 people go. They cut about 6,000 jobs in May and then another 9,000 in July, which is a lot of people to lose, even for a huge company like Microsoft.

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2025-09-22 17:11