New Fees Imposed on H-1B Visas
A new policy has been enacted which adds an annual fee of $100,000 to H-1B visa applications. This could potentially impact the tech industry in the United States, which frequently hires skilled workers from countries like India and China.
Implications for Tech Industry
The new visa fee has been communicated to major corporations. This new rule mandates a $100,000 annual payment for H-1B visas. The primary message seems to be a call for companies to train and employ American graduates, instead of hiring foreign talents for job positions.
The tech industry has been a key player in the discussion around H-1B visas. This sector, which was a significant contributor to the latest presidential campaign, is known for relying heavily on H-1B visa holders. Government data reveals that about two-thirds of jobs filled through the H-1B program are related to computing. However, companies also utilize this visa to hire professionals in fields such as engineering, education, and healthcare.
Visa Distribution and Criticisms
During the first half of this year, one online retail giant had over 10,000 H-1B visas approved, while two major tech corporations had more than 5,000 approvals each. The H-1B program grants 65,000 visas each year to employers who hire temporary foreign workers with specialized skills, along with an additional 20,000 visas for workers with advanced degrees.
There are differing views on this program. Some, including several US tech workers, argue that it allows companies to lower wages and exclude Americans who are capable of performing the jobs. Others believe it is a valuable resource to bring in highly skilled workers to fill talent voids and maintain competitiveness. One notable tech CEO, a naturalized US citizen originally from South Africa, was once an H-1B visa holder himself.
Effects of the New Fee
Introducing this fee could discourage attracting top-ranked global talent to the United States. A partner at a venture capital firm has stated that if the US fails to attract the best talent, it will significantly limit its potential for innovation and economic growth. This new fee could also increase costs considerably for businesses, especially smaller tech firms and startups.
Those who support the new fee believe it will encourage hiring Americans and ensure that only the best talents are brought in from abroad.
Legal Questions
However, there are questions about whether the executive branch has the authority to implement such a hefty annual fee. A senior fellow at the American Immigration Council has stated that the president has no legal authority to impose a $100,000 fee on visas. The only authority given by Congress to the executive branch in this matter is to charge fees to recover the cost of processing the application.
Currently, H-1B applicants pay a nominal fee to enter a lottery and, if selected, subsequent fees that can reach several thousand dollars, depending on the case. Almost all the visa fees have to be paid by employers. H-1B visas are approved for a period of three to six years.
This is the latest move by the administration to regulate, or generate more revenue from, legal immigration. Recently, a pilot program was initiated allowing consular officers to demand bonds of up to $15,000 for tourist and business visas from countries with high overstay rates or limited vetting data. This comes after a recent travel ban restricting entry from 19 nations. The administration previously issued several regulations aimed at limiting access to H-1B visas and granting them to higher-paying employers, but these regulations were blocked in federal court.
