US Clarifies H-1B Policy: $100,000 Fee One-Time Charge For New Applicants, Not Annual Levy

Washington: The White House on Saturday, September 20, moved to clarify its new H-1B visa policy, announcing that a controversial $100,000 charge will be a one-time payment applied only to new applicants.

The clarification came after widespread confusion in the technology industry following Friday’s announcement by US Commerce Secretary Howard Lutnick, who had suggested the fee would be collected annually and apply to both new visas and renewals.

Here's Sec of Commerce Howard Lutnick yesterday saying Trump's $100,000 H-1B visa fee is annual, five times in a row.

So, either they were lying, or this administration folded in less than 24 hours. https://t.co/nc5yeX9G07 pic.twitter.com/JBINhfMDKe

— 𝐆𝐫𝐢𝐦𝐚𝐥𝐝𝐮𝐬 (@ImperiumFirst) September 20, 2025

White House Clarifies

Press Secretary Karoline Leavitt said the fee “is NOT an annual fee” and confirmed it will not affect existing H-1B visa holders or renewals. “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,” she added in a post on social media.

To be clear:

1.) This is NOT an annual fee. It’s a one-time fee that applies only to the petition.

2.) 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.

H-1B visa holders can leave and re-enter the…

— Karoline Leavitt (@PressSec) September 20, 2025

Industry and International Response

The initial announcement left US companies scrambling to interpret the policy. The San Francisco Chronicle reported that some H-1B holders even de-boarded flights out of fear they would be unable to return. JPMorgan advised its foreign workers to avoid international travel until further clarity was provided.

Commerce Secretary Lutnick had earlier told reporters the payment would be required annually, describing it as a test of whether companies valued their foreign staff enough to pay. President Donald Trump, who signed the order on Friday, argued the move would protect American jobs, saying the H-1B system had been “deliberately exploited.”

India, whose nationals make up nearly three-quarters of new H-1B recipients each year, expressed concern. The foreign ministry said the changes could disrupt families and warned of “humanitarian consequences.”

The United States approved about 400,000 H-1B visas in 2024, two-thirds of which were renewals. The visas are widely used in the technology sector, with Indian engineers and programmers forming a significant proportion of the skilled workforce.