Microsoft has advised employees holding H-1B and H-4 visas to remain in the United States for the foreseeable future, and strongly urged those currently abroad to return by tomorrow, according to an internal email seen by Reuters.
The company’s message came just hours after President Donald Trump signed a proclamation imposing a $100,000 fee on H-1B visa applications. The order takes effect September 21 and will remain in place for one year, though it may be extended.
“We strongly recommend H-1B and H-4 visa holders return to the US tomorrow before the deadline,” Microsoft said in its internal advisory.
JPMorgan’s outside immigration counsel has issued similar guidance, warning employees to avoid international travel until further notice.
Trump’s Justification
In announcing the fee hike, Trump accused tech firms of abusing the H-1B system to replace American workers with lower-paid foreign labor.
“The H-1B program was created to bring temporary workers into the US to perform additive, high-skilled functions, but it has been exploited to replace, not supplement, American workers,” Trump said. He also described H-1B abuse as a national security threat, citing investigations into visa fraud and money laundering involving outsourcing firms.
Commerce Secretary Howard Lutnick defended the measure, saying it would “ensure US companies hire more American talent while sending less valuable foreign workers back to their home countries.”
Heavy Impact on Indians
With over 70% of H-1B visas held by Indians, the order is expected to disproportionately affect the Indian diaspora in the US. Big tech firms, many of which rely heavily on Indian engineers and IT workers, are bracing for disruptions to staffing and travel.
Trump has long targeted the H-1B program. Earlier attempts to restrict it faced legal challenges, but this latest move is seen as a significant escalation in his second-term immigration crackdown.
