The company warned staff about the September 21 deadline set by the Trump administration last week. An internal Microsoft email advised visa holders currently in the U.S. to avoid international travel now. It also strongly recommended all H-1B and H-4 holders abroad return by September 20 without delay. Microsoft emphasized urgency due to a steep rise in H-1B visa fees starting next week.
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The new rule imposes a \$100,000 annual cost per H-1B visa for sponsoring tech companies. Trump claimed the policy would please industry leaders by prioritizing American talent and job security. The government framed this move as protection for U.S. workers and a way to ensure fairness. Commerce Secretary Lutnick said companies must now train American graduates instead of hiring foreign workers.
Staff Secretary Will Scharf said many H-1B positions are easily replaceable by American professionals. He explained that increasing visa costs will ensure companies only hire truly highly skilled foreigners. The administration aims to limit misuse of visas and promote hiring from the U.S. talent pool. Scharf argued this will reduce dependency on foreign labor and strengthen the domestic workforce overall.
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India continues to dominate H-1B approvals, contributing 71% of the total visas issued last year. China followed with 11.7%, highlighting both nations’ importance to the U.S. skilled labor market. Amazon, with AWS, secured over 12,000 H-1B visas during the first half of 2025 alone. Microsoft and Meta each received approvals for over 5,000 workers under the same visa program.
Industry leaders are concerned that immigration restrictions could harm competitiveness and delay key projects. Startups and large enterprises alike may struggle to pay the steep new visa sponsorship fee. Some experts warn this move might push talent to Canada, Europe, or other friendlier countries. The situation remains tense as companies await potential legal challenges or policy reversals after backlash.
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