Trump’s H-1B Visa Fee: Who Bears the $100K Cost?

Former President Donald Trump has proposed a drastic $100,000 annual fee for each H-1B visa worker. This policy aims to overhaul the current system for hiring foreign skilled labor. The announcement has sent shockwaves through the technology and business sectors.

Companies relying on this visa program now face a potential financial earthquake. The move is designed to strongly incentivize the hiring of American workers first.

Current H-1B Visa Costs Explained

Under existing US law, employers bear nearly all H-1B visa costs. These fees include the Labor Condition Application and the I-129 petition. Employers cannot force employees to pay these mandatory fees.

The current registration fee for the H-1B lottery is $215. Final filing fees range from $1,000 to $2,500. These costs depend on the company’s size and status. This structure ensures foreign workers are not financially exploited.

The Rationale Behind the $100,000 Fee Proposal

The proposed fee targets systemic abuse of the visa program. Officials argue lower-paid foreign workers sometimes displace American labor. This is a significant issue in the information technology industry.

This policy would make hiring an H-1B worker exceptionally expensive. The goal is to preserve access to elite global talent while punishing bad actors. According to Reuters, the fee would be temporary initially. It would last for twelve months pending a federal review.

Potential Fallout for Businesses and Workers

The proposed fee could drastically reduce H-1B visa applications. Start-ups and smaller firms may find the cost completely prohibitive. This could severely limit opportunities for highly skilled foreign professionals.

American tech workers may benefit from this shift. Companies could prioritize domestic talent over international recruits. The H-1B program has sometimes been used to fill entry-level roles with cheaper labor. The enormous fee would eliminate any potential cost savings.

This proposal fundamentally reshapes the economics of hiring foreign talent. The massive $100,000 H-1B visa fee could protect US jobs but stifle innovation. Its final impact will depend on congressional approval and industry adaptation.

Info at your fingertips

Who pays for the H-1B visa under the current system?

US employers are responsible for nearly all costs. This includes application and legal fees. Workers are legally protected from bearing these expenses.

What is the purpose of the proposed $100,000 fee?

The fee aims to discourage companies from replacing American workers with cheaper foreign labor. It makes hiring an H-1B worker a significant financial investment.

How would this fee impact American workers?

Analysts suggest it could create more opportunities for US talent. Companies might be more likely to hire locally due to the high cost of visas.

Which industries would be most affected?

The technology sector would feel the greatest impact. It is the largest user of the H-1B visa program for skilled engineering and IT roles.

Is this $100,000 fee official policy now?

No, it is currently a proposal from the Trump campaign. It would require legislative action to become law.