Microsoft Urges H-1B Visa Holders to Remain in US Amid Trump's $100,000 Fee Announcement

Microsoft advised its H-1B visa employees to continue working in the US for the foreseeable future after President Trump announced a new $100,000 annual fee on the program. The memo is a response to concerns over how the fee could affect the IT sector. Microsoft's internal email was seen by Reuters.

Microsoft has advised its H-1B visa employees to continue working in the United States for the foreseeable future, following President Donald Trump's announcement of a new $100,000 annual fee on the program. The memo, seen by Reuters, reflects the company's response to concerns over how the fee could impact the IT sector.

The new fee, which President Trump signed into a proclamation on September 12, 2025, is part of a broader effort to address perceived abuses within the H-1B visa program. The program allows companies to sponsor workers in specialty occupations to live and work in the United States. The new fee, which is unprecedented, is intended to deter companies from hiring foreign workers in lieu of American workers.

Microsoft's internal email, seen by Reuters, stated that the company was monitoring the situation closely and would provide updates as more information became available. The memo also advised employees to continue working in the US and to stay in touch with the company's human resources department for any updates or changes to their employment status.

The H-1B visa program has been a contentious issue in recent years, with critics arguing that it allows companies to hire foreign workers at lower wages than American workers. Supporters of the program, however, argue that it brings in highly skilled workers who can fill gaps in the domestic workforce.

The new fee is expected to have a significant impact on companies that rely on the H-1B program to hire foreign workers. Ester Greenfield, of counsel at MacDonald, Hoague & Bayless in Seattle, stated that the fee "doesn’t make sense as an economic thing" and that historically, bringing in smart, capable, well-educated folks to work in skilled jobs is good for the economy Trump adds new $100K H-1B visa fee, possibly shaking up WA tech scene^[1].

Jacob Vigdor, an economist with the University of Washington Evans School of Public Policy, noted that globalized tech behemoths may have options other than hiring foreign workers in the US. "These corporations have the option of hiring foreign workers without bringing them to the United States," he said Trump adds new $100K H-1B visa fee, possibly shaking up WA tech scene^[1].

The proclamation specifically called out tech companies and accused the industry of manipulating the system. However, Microsoft and Amazon, two of the largest tech companies in the US, have denied any connection between their layoffs and H-1B visa applications.

Much remains uncertain about how the $100,000 fee would be implemented and if certain groups, such as universities and nonprofits, might be exempt. The president's action may also face legal challenges, as many previous orders have through lawsuits from several states and organizations.