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White House spokesperson clarifies Commerce Secretary's remarks on 'annual' levy
Trump signing the proclamation to increase professional visa fees. Reuters=Yonhap News.
Amid announcements from the U.S. Donald Trump administration that it will drastically increase the "H-1B professional visa" fee to $100,000 per person (approximately 140 million won), the White House stated on the 20th (local time) that this will apply only to new visa applicants.
White House Press Secretary Karoline Leavitt posted this clarification on her social media (X, formerly Twitter) account "for the sake of clarity."
First, Leavitt stated, "This is not an annual fee. It is a one-time fee applied only at the time of application."
She added, "Individuals who already hold an H-1B visa and are currently residing abroad will not be charged $100,000 upon re-entry (into the U.S.). H-1B visa holders can travel out of and re-enter the country as they normally would. The executive order announced yesterday (the 19th) does not affect them."
Leavitt further emphasized, "This measure applies only to new visas and does not apply to renewals or existing visa holders."
The previous day, President Trump signed a proclamation raising the H-1B visa fee to $100,000, which is 100 times the current $1,000 (approximately 1.4 million won). The new fee regulation will take effect at 12:01 AM on September 21.
Commerce Secretary Howard Lutnick, who attended the signing ceremony at the time, had stated that the new fee would be charged annually for a total of six years, and that the same amount would have to be paid each year to renew the visa.
Following the announcement of these new rules, chaos has ensued as U.S. tech companies, such as Microsoft (MS), have strongly advised existing H-1B employees currently abroad to return to the U.S. by today and have instructed them to remain within the U.S. for the time being.
The White House's move appears to be an attempt at damage control following the widespread confusion, by correcting Secretary Lutnick's explanation to clarify that the new fee regulation does not apply to existing holders upon re-entry to the U.S., and that they are not required to pay the $100,000 fee annually.
The H-1B visa is issued for professional positions in Science, Technology, Engineering, and Mathematics (STEM) fields, and the number of annual issuances via lottery is capped at 85,000. It allows for an initial three-year stay, with possibilities for extension and applications for permanent residency.
The "MAGA" (Make America Great Again) faction, a core base of Trump supporters, has long argued that U.S. companies are using H-1B visas to bring in foreign labor at a lower cost, thereby taking jobs away from Americans.
However, there is also significant counter-argument that H-1B visas are essential for the U.S. to attract top global talent. U.S. tech firms that have hired large numbers of foreign professionals are currently in a state of emergency.
The White House distributed a separate fact sheet on the day, reiterating the necessity of increasing H-1B visa fees.
The White House explained, "The H-1B program discourages future American workers from choosing STEM careers, which threatens our national security. President Trump intends to impose higher costs on companies seeking to use the H-1B program to address its abuse, prevent wage depression, and protect national security."
They also provided specific supporting figures.
The White House stated, "The proportion of H-1B visa workers in the IT sector has increased from 32% in fiscal year 2003 to over 65% recently," adding that "U.S. companies are laying off American tech workers and replacing them with H-1B workers."
According to the White House, one U.S. company received approval for 5,189 H-1B visas in fiscal year 2025 while laying off approximately 16,000 American employees.
Another company received 1,698 H-1B visa approvals during the same period and announced plans to lay off 2,400 American employees in Oregon last July.
A third company received 1,137 H-1B approvals in fiscal year 2025 and cut 1,000 American jobs this February, according to the White House.
The White House claimed, "There are even stories of American IT workers being forced to train their foreign replacements under non-disclosure agreements."
Meanwhile, regarding the proclamation signed by President Trump the previous day, the White House explained, "The proclamation instructs the Secretary of Homeland Security to limit visa approvals when a foreign national currently outside the U.S. applies for a visa without the accompanying fee, while allowing for case-by-case exceptions when it serves the national interest."
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