Air fares surge after Donald Trump’s creates H-1B visa confusion

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Donald Trump
Donald Trump

President Donald Trump signed a proclamation on 19 September that requires employers to pay €92,000 for new H-1B visa petitions filed for workers outside the United States, effective from 21 September at 12:01 a.m. eastern daylight time. 

The fee applies per petition for the specialty occupation category under the programme, which allows companies to sponsor foreign workers in fields such as software engineering and medicine for up to six years. 

White House officials clarified on 20 September that the charge represents a one-time payment tied to the initial application, not an annual levy, and excludes renewals, extensions, or current visa holders re-entering the country. 

The order restricts entry for nonimmigrant workers unless the payment accompanies the petition, with the restriction set to last 12 months unless extended. Immigration experts question the executive branch’s authority to set the fee, as Congress has limited such charges to processing costs, which previously totalled under €4,600 per application. 

The administration cites examples of companies receiving thousands of approvals while reducing American staff, including one firm that cut 16,000 domestic positions after gaining 5,189 visas in the fiscal year ending 30 September 2025. India accounts for 71 per cent of H-1B approvals, followed by China at 11.7 per cent, with 85,000 visas available annually through a lottery system. 

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The change follows Trump’s first-term efforts to increase scrutiny on applications for fraud detection. Companies that secured approvals in the 2025 lottery face no impact, but the February 2026 cycle will incorporate the fee for new entrants abroad. Tech firms, which rely on the programme for over half am workers, issued urgent memos on 20 September advising employees with H-1B or dependent H-4 status outside the United States to return before the deadline, citing initial uncertainty in the proclamation’s language. Amazon instructed staff to clear customs by 21 September at 9:00 p.m.

Pacific time, while Microsoft and JPMorgan Chase sent similar notices, leading to a surge in one-way flights from Delhi to New York with fares rising from €340-€370 to €710-€740. Goldman Sachs urged caution on international travel based on guidance from immigration firm Fragomen. The Chamber of Progress, a tech policy group, stated that firms must reassess their approach to the programme, with concerns over effects on artificial intelligence development.

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Stuart Anderson of the National Foundation for American Policy warned that the policy could prompt companies to offshore positions, reducing United States competitiveness. In the medical sector, where 10,000 of 43,000 residency spots go to H-1B holders earning €51,000 annually, hospitals anticipate challenges filling roles, as the fee exceeds typical salaries.

Travel and aviation operators report booking disruptions from panicked reservations, including interference from online campaigns that blocked seats on routes from India and China. India’s Ministry of External Affairs noted on 20 September that the measure undergoes review by industry stakeholders and could disrupt families, given that many holders bring spouses and children on dependent visas. The US-India Strategic Partnership Forum, representing 450 companies, supports curbing misuse but seeks dialogue on implementation.

Commerce Secretary Howard Lutnick, who joined Trump for the signing, stated that the fee derives from consultations with businesses to prioritise American training. The White House projects the change will generate revenue for priorities such as border security while curbing what it terms deliberate exploitation of the programme.

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Legal challenges loom from groups like the American Immigration Council, which argues the fee lacks statutory basis. As of 22 September, the Department of Homeland Security finalises guidance on petition processing, with no reports of denied entries under the new rule. The proclamation coincides with a separate order for a “gold card” visa at €920,000 for high-net-worth individuals, alongside proposals for a €4.6m “platinum card” requiring congressional approval.

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