Trump Wants to Charge H-1B Skilled Worker Visa Applicants $100,000 Per Year
Trump’s recent executive order, which charges applicants for H-1B visas a $100,000 fee, has raised concerns about the potentially disastrous economic effects.
Under an executive order signed by US President Donald Trump, applicants to the H-1B visa program for skilled foreign workers would henceforth be required to pay an annual fee of $100,000 (£74,000.
The injunction, which goes into force on September 21st, bans admission unless the fee is paid and cites “abuse” of the program. Although the legislation only applies to new applications, US Commerce Secretary Howard Lutnick clarified that businesses will be required to pay the same sum for each applicant for a period of six years.
“The business must determine if the individual is worth $100,000 annually to the government or if they should go back home and hire an American,” Lutnick stated. “Big businesses are all on board.”
Administrative fees associated with H-1B visas have up to now totaled approximately $1,500. Since 2004, the number of applications has been limited to 85,000 every year; however, US Citizenship and Immigration Services (USCIS) reports that the number of applications filed for the upcoming fiscal year was the lowest in four years, at approximately 359,000.
There have been strong reactions to the new regime. It might be a “nail in the coffin” for many start-ups and small firms, according to immigration attorney Tahmina Watson, who stated: “Almost everyone’s going to be priced out.” This $100,000 will have a disastrous effect as a starting point.
The bill was also criticized by Jorge Lopez, chair of immigration and global mobility at Littler Mendelson PC, who warned that it “will put the brakes on American competitiveness in the tech sector and all industries.” Some businesses might want to grow outside of the US, he added.
Proponents of the H-1B program, like Elon Musk, claim the visas assist the US attract top talent from around the world, while detractors claim the visas undercut American labor. Tech titans like Amazon, Tata, Microsoft, Meta, Apple, and Google have been among the biggest benefactors of the program.
With costs starting at £1 million, Trump also instituted a “gold card” visa to expedite immigration for a restricted group of candidates.
The H-1B controversy has long caused division among Trump’s supporters. During his campaign, Trump pledged to facilitate the process of luring in foreign talent, even suggesting that college graduates be granted green cards. But earlier in his administration, he issued directives that increased the review of H-1B applications; in 2018, the percentage of applications denied reached a high of 24 percent.
Businesses in India, the country that receives the most H-1B petitions, are especially concerned that the additional limitations will further restrict the chances available to qualified individuals who want to work in the US.
