US Hikes H-1B Visa Fee to $100,000, Then Partially Walks Back Policy After Backlash

The United States announced a massive new $100,000 fee for H-1B visa petitions. The sudden move caused immediate panic among foreign workers and their employers. It specifically impacted Indian professionals, who form the majority of H-1B holders.

The Trump administration later clarified the rule. Officials stated it would only apply to new applicants. This partial reversal followed significant pushback from American companies.

Policy Rollback Described as Putting Toothpaste Back in Tube

A former Indian diplomat criticized the policy’s chaotic rollout. Mahesh Sachdev said the initial announcement was rushed. He compared the subsequent clarification to trying to put toothpaste back in the tube.

According to his analysis, American employers forced the change. Companies that rely on highly skilled H-1B workers strongly protested the fee. This pressure led the administration to limit the fee’s scope to new entrants only.

Core Issue of Skilled Worker Flow Remains Unresolved

Despite the amendment, core problems persist. The policy continues to hamper the free flow of crucial technical talent. Sachdev stated the U.S. needs these skilled workers for its innovation goals.

The move is seen as appealing to a political base. This base believes foreign workers limit employability for Americans. Data from Reuters suggests U.S. IT industry unemployment is slightly higher than the national average. This is often due to rapidly evolving technology and skills becoming obsolete.

The situation presents a difficult choice for companies. They must either train local workers and wait or hire readily available foreign experts to stay competitive.

Info at your fingertips

What is the new H-1B visa fee?

The Trump administration announced a new one-time fee of $100,000 for certain H-1B visa petitions. This fee is separate from existing application costs.

Who has to pay the $100,000 fee?

After clarification, the fee applies only to new H-1B visa applicants. Current visa holders are exempt from this new charge.

Why was the policy changed so quickly?

Major U.S. companies that employ H-1B workers pushed back forcefully. The administration amended the rule to address their significant concerns.

How did the announcement cause confusion?

The initial announcement lacked clear details. It caused panic, with many advising visa holders abroad to return to the U.S. immediately to avoid being stranded.

What was the Indian government’s response?

India expressed humanitarian concern over the drastic fee increase. The government stated it would sharply raise costs for its skilled tech workers.

Are there any exemptions to the fee?

A White House fact sheet noted a potential exemption. The fee may be waived for an application deemed to be in the national interest.

Trusted Sources

Associated Press, Reuters, BBC News, ANI