US tech companies, such as Microsoft, have asked workers with H-1B and H-4 visas who are outside the United States to return immediately, before September 21, when President Donald Trump's new $100,000 per year H-1B visa fee goes into effect.
The administration has come up with this hefty fee for every visa, which will go into effect on September 21 and will last for 12 months.
Reports state that firms like Microsoft and JPMorgan have instructed H-1B employees already in the US to carry on working locally "for the foreseeable future" and avoid foreign travel until further advice is offered.
Microsoft has allegedly also suggested that H-4 visa holders stay in the US. "We strongly recommend H-1B and H-4 visa holders return to the US tomorrow before the deadline," the firm said.
Neither JPMorgan nor Microsoft has made an official comment on the issue so far.
President Trump hopes that the new, fee-based visa scheme will raise over $100 billion for the US Treasury to go towards paying down national debt and financing tax cuts. Critics believe, however, that the large additional fee will limit talent mobility and may stifle innovation.
Currently, up to 71 percent of H-1B visa recipients are Indian nationals, who work mostly for big technology companies like Infosys, Wipro, Cognizant, and Tata Consultancy Services.
Share prices of top IT services companies, including those traded in the US, fell between 2 and 5 percent after the announcement.
H-1B visas are usually valid for three years and can be extended to six years. The new $100,000 per year fee is likely to make it much more expensive for firms to keep Indian professionals, especially considering the extended waiting lists for US Green Cards.
The H-1B program enables US firms to import highly skilled foreign employees, especially in the area of technology and engineering.
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