President Donald Trump signed a proclamation on Friday significantly altering the H-1B visa program. The order raises the application fee to $100,000 per visa annually. This move directly targets companies hiring high-skilled foreign workers.
The proclamation is part of a broader immigration crackdown. It aims to push companies to hire and train American workers first.
New H-1B Visa Rules Aim to Protect American Jobs
Commerce Secretary Howard Lutnick confirmed the new annual fee. He stated that “all big companies” are on board with the plan. The policy is designed to make importing foreign labor less economical for firms.
According to reports, the administration believes the H-1B system has been widely abused. The visa is intended for specialized roles that cannot be filled by American citizens. Officials argue it has instead been used to replace domestic workers with cheaper foreign alternatives.
White House Staff Secretary Will Scharf emphasized the new fee’s purpose. He said it will ensure companies only bring in irreplaceable, highly-skilled talent. The cost is meant to discourage the routine use of the visa for general staffing needs.
Major Impact Expected on Tech Industry and Indian Nationals
The new fee structure will have profound implications. The tech industry, a major user of H-1B visas, will face significantly higher operational costs. This may lead to a strategic shift in hiring practices toward domestic graduates.
Indian professionals are likely to be disproportionately affected. They consistently receive the majority of new H-1B visas each year. This policy could drastically reduce opportunities for skilled workers from India seeking US employment.
The change represents the most significant overhaul of the temporary visa system under the current administration. It follows a series of measures aimed at restricting both legal and illegal immigration since January.
The new $100,000 H-1B visa fee fundamentally reshapes US immigration policy for skilled workers. This move prioritizes American labor and challenges major corporations to invest locally, marking a pivotal shift in how the country attracts global talent.
Info at your fingertips
What is the new H-1B visa fee?
The new fee is $100,000 per year for each H-1B visa. Companies must pay this amount annually for every foreign worker they sponsor under this program.
Why did Trump raise the H-1B visa fee?
The administration aims to reduce reliance on foreign labor. The high cost incentivizes companies to hire and train American workers instead.
How will the increased fee affect companies?
Businesses, especially in tech, will face much higher costs for hiring skilled foreign workers. This will likely force a greater focus on recruiting from within the US workforce.
When does the new fee take effect?
The proclamation was signed on a Friday. Specific implementation timelines are typically detailed in subsequent regulatory guidelines.
Who is most affected by this change?
Indian nationals and the technology sector are most impacted. Indian professionals receive most H-1B visas, and tech firms are the primary users of the program.
Are there any exemptions to the new fee?
Current reports do not indicate any broad exemptions. The fee applies to companies sponsoring H-1B visa holders.
Trusted Sources
Hindustan Times
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