• Source:JND
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Trump H-1B visa fee hike: In a significant move for the H-1B visa programme, US President Donald Trump signed a proclamation on Friday, which imposes a steep USD 100,000 annual application fee for work permits, a move that could drastically change the situation for Indian and foreign professionals.

The rule is the most significant modification to the program since its establishment in 1990. It will have the most substantial impact on Indian IT companies and qualified professionals, as they represent the largest share of H-1B recipients annually.

What Does The New H-1B Rule Mean?

The H-1B is a non-immigrant employment visa permitting US businesses to employ foreign employees in specialised positions. It is given initially for three years and extended for another three years. The visa has, for years, been regarded by most economists and businesspeople as a tool that makes US companies competitive internationally. Its proponents argue that the program allows companies to expand, innovate, and generate additional jobs locally.

• Foreign talent hiring employers have to pay USD 100,000 upfront for each application.
• It is not yet known if this fee is for all applications or just some types of petitions.
• Startups and small enterprises will be hit the hardest, as they might not be able to absorb the new expense.
• Large technology firms can reduce applications but still hire in specialized situations.
• For US technology professionals, the provision is expected to provide more scope as companies resort to domestic recruitment.

What It Mean For Indians?

India, being the largest provider of H-1B professionals, will be most affected. For Indian employees and IT exports, the new charge makes it tough. Although top, high-ranking jobs will continue to find patronage, junior jobs will suffer a decline, hurting thousands of applicants annually:

• 71 per cent of the 2024 H-1B visas were allocated to Indians.
• IT outsourcing companies like Infosys, Wipro, TCS, HCL, and Cognizant will have to pay more when sending employees to the US.
• Professionals who depend on H-1B sponsorship will have fewer prospects as businesses cut back on applications.
• Indian high-skilled engineers and researchers can still have a way in, but only for high-wage, high-demand positions.
• Indian graduates' entry-level jobs may decline significantly.

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Large companies like Amazon, Microsoft, and Meta, top recipients of H-1B approval, may incur increasing expenses but are likely to continue sponsoring specialist positions. Justifying the action, Trump added that the tech sector would not resist the move. "I think they're going to be very happy," he said to reporters, adding that the new fee will allow only the "best and brightest" people to work in the US. White House staff secretary Will Scharf shared this opinion, stating the action would stop exploitation of the system. "This will make sure that the individuals they're bringing in are actually extremely highly skilled and can't be replaced by American employees," he stated.

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Commerce Secretary Howard Lutnick added that companies would no longer use H-1B visas for trainees. "The whole idea is that no more will these big tech companies or other big companies train foreign workers. They have to pay the government USD 100,000, then they have to pay the employee. So it's just not economic. If you're going to train somebody, you're going to train one of the recent graduates from one of the great universities across our land, train Americans, stop bringing in people to take our jobs. That's the policy here. All of the big companies are on board." he said.