U.S. Immigration: $100,000 fee for new H-1B visa applicants could disrupt Bay Area tech industry, experts say

SAN FRANCISCO (KGO) — Bay Area tech companies and workers are bracing themselves for the impact of new H-1B visa fees. The visas bring tech workers from India and other countries.

Pres. Donald Trump signed an executive order Friday, imposing a new $100,000 fee on new H-1B applications, and it’s expected to go into effect Sunday.

The announcement has already created a lot of confusion and concern.

“It’s a very panic-driven situation,” said Khanderao Kand.

Some people have been rushing to fly back to the U.S.

RELATED: Trump signs proclamation adding $100,000 annual fee for H-1B visa applications

“Everybody is struggling. I have seen some news about Microsoft, Amazon, other companies communicating with their workers outside the United States — ‘everybody come back,'” said SJSU Professor and tech expert Ahmed Banafa.

That’s because of an initial message from the White House regarding H-1B visas. Those visas bring highly skilled workers — like scientists, engineers, architects, technical workers and people in math — to the U.S.

John Trasvina, former general counsel to the U.S. Senate Judiciary Committee, explained the initial message that was put out by the White House on Friday.

“H-1B visa holders would not be admitted without having paid $100,000 — the employers paying $100,000 for their application,” Trasvina said.

On Saturday, the White House clarified the new order, saying the fee only applies to new applications as a one-time fee.

The White House says the fee will not affect current H-1B visa holders.

According to the White House, the fee would help level the playing field for American workers.

Some believe the new fee will disrupt the tech industry in the Bay Area.

Khanderao Kand is with Global Indian Tech Professionals based in Silicon Valley.

“This is a tremendous blow to the tech professionals as well as startups in Silicon Valley,” Kand said. “The talent pool and availability of the funds will be short for the startups.”

For giant tech companies like Amazon, Apple, Google, Meta, Yahoo or X…

Kand said, “All these companies, they hire 10,000 or more H-1Bs. This will be tens of millions of dollars of impact on them.”

Banafa says many tech giants got their start in the U.S. because of H-1B visas.

“Most of the CEOs of the tech companies in the Bay Area, including Elon Musk, went through the H-1B visa,” Banafa said.

Some say making it tougher to get an H-1B visa will have long term impacts.

“It does not help the industry. It doesn’t help American workers. It doesn’t help the immigrants. Companies rely on H-1B visa workers,” Trasvina said. “We are tech heavy industry in the region. Companies will have to pay more to bring in the H-1B visas for the employees they need. And, costs will be passed onto us.”