The White House issued a major clarification to its new H-1B visa policy that had rattled the tech industry a day earlier, saying a US$100,000 ($150,000) fee will be a "one-time" payment imposed only on new applicants.
US commerce secretary Howard Lutnick, in announcing the major fee increase on Saturday AEST, said it would be paid annually, and would apply to people seeking a new visa as well as renewals.
But White House press secretary Karoline Leavitt issued a clarification on Sunday, hours before the new policy was to go into effect.
"This is NOT an annual fee. It's a one-time fee that applies ... only to new visas, not renewals, and not current visa holders," she said in a social media post.
The executive order, which is likely to face legal challenges, comes into force Sunday at 12:01 am US Eastern time (0401 GMT), or 9:01 pm Saturday on the Pacific Coast.
Prior to the White House's clarification, US companies were scrambling to figure out the implications for their foreign workers, with several reportedly warning their employees not to leave the country.
Some people who were already on planes preparing to leave the country on Saturday de-boarded over fears they may not be allowed to re-enter the United States, the San Francisco Chronicle reported.
"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," Leavitt said.
"H-1B visa holders can leave and re-enter the country to the same extent as they normally would," she added.
What is the H-1B visa?
H-1B visas allow companies to sponsor foreign workers with specialised skills — such as scientists, engineers, and computer programmers — to work in the United States, initially for three years but extendable to six.
The United States awards 85,000 H-1B visas per year on a lottery system, with India accounting for around three-quarters of the recipients.
Large technology firms rely on Indian workers who either relocate to the United States or come and go between the two countries.
Tech entrepreneurs — including Trump's former ally Elon Musk — have warned against targeting H-1B visas, saying that the United States does not have enough homegrown talent to fill important tech sector job vacancies.
Trump has had the H-1B program in his sights since his first term in office, but faced court challenges to his earlier approach, which targeted the types of jobs that qualify. The current iteration has become the latest move in the major immigration crackdown of his second term.
According to Trump's order, which is set to go into effect on Monday, the Homeland Security secretary will be able to exempt individuals, entire companies, or entire industries.
The order expires in a year, though Trump can extend it.
The number of H-1B visa applications has risen sharply in recent years, with a peak in approvals in 2022 under Democratic president Joe Biden.
In contrast, the peak in rejections was recorded in 2018, during Trump's first term in the White House.
The United States approved approximately 400,000 H-1B visas in 2024, two-thirds of which were renewals.
