Overview

• Effective since Sunday, the fee applies only to new H‑1B petitions and not to current holders or renewals, the White House and USCIS confirmed in weekend guidance.
• The abrupt rollout sowed confusion, with companies urging employees to avoid international travel and reports of an Emirates flight delay at San Francisco as some Indian passengers deplaned.
• Employers and founders say they are pausing recruitment and weighing offshoring, with one startup CEO saying they will likely cut H‑1B hiring; Jefferies estimates margins could fall 100–200 basis points and profits 4%–13%.
• India’s foreign ministry warned of likely humanitarian consequences for families; Indian nationals account for roughly 71% of H‑1B beneficiaries, heightening diplomatic sensitivity.
• California, Texas and New York face the greatest exposure based on approvals, while Gulf states and parts of Europe and Canada are positioning to attract displaced talent and startups.