On September 19, 2023, a White House official announced that U.S. President Donald Trump intends to impose a new $100,000 application fee for H-1B worker visas. This significant move could have serious implications for the technology sector, which heavily relies on skilled workers from countries like India and China. As part of Trump's ongoing immigration crackdown, he is expected to sign a proclamation as early as Friday that will restrict entry under the H-1B visa program unless this hefty application fee is paid.
While the announcement has created a stir, the specifics regarding who will be affected by the fee and how it will be administered remain unclear. The H-1B program has become a contentious issue, creating a divide between Trump's conservative base and the technology industry, which has contributed millions of dollars to his presidential campaign. Supporters of the H-1B visa program, including prominent figures like Tesla CEO Elon Musk, argue that it attracts highly skilled workers who are essential for filling talent gaps and maintaining competitiveness within the industry.
On the other hand, critics of the program, including many American technology workers, contend that it enables companies to suppress wages and overlook qualified American candidates. Government statistics indicate that approximately two-thirds of the jobs secured through the H-1B program are computer-related. However, the visa is also utilized by employers to recruit engineers, educators, and healthcare professionals.
Under the existing system, H-1B applicants are required to pay a nominal fee of $215 to enter a lottery. If selected, they must pay additional fees, which can total several thousand dollars depending on the specific case. Data shows that India was the largest beneficiary of H-1B visas last year, accounting for 71% of approved beneficiaries, while China followed as a distant second at 11.7%.
The H-1B visas are typically approved for a duration of three to six years, allowing foreign workers to contribute to the U.S. economy during that time. The potential implementation of a $100,000 application fee could drastically change the landscape of the H-1B visa program, impacting both businesses and skilled workers alike.
As the situation develops, companies and the Indian embassy in Washington have yet to respond to inquiries regarding this new fee proposal. The upcoming decision will likely be closely monitored by various stakeholders in the technology sector and beyond.
