{"id":5599,"date":"2025-09-23T18:35:40","date_gmt":"2025-09-24T01:35:40","guid":{"rendered":"https:\/\/abovecloud.xyz\/?p=5599"},"modified":"2025-09-23T18:35:55","modified_gmt":"2025-09-24T01:35:55","slug":"what-to-know-about-the-h-1b-visa-trump-has-targeted-with-100000-fees-generating-confusion-fear","status":"publish","type":"post","link":"https:\/\/abovecloud.xyz\/?p=5599","title":{"rendered":"What to know about the H-1B visa Trump has targeted with $100,000 fees, generating confusion, fear"},"content":{"rendered":"\n

The Trump administration\u2019s abrupt\u00a0decision to slap a $100,000 fee<\/a>\u00a0on H-1B visas has stunned and confused employers, students and workers from the United States to India and beyond.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

Since announcing the decision Friday, the White House has tried to reassure jittery companies that the fee does not apply to existing visa holders and that their H-1B employees traveling abroad will not be stranded, unable to re-enter the United States without coming up with $100,000. The new policy took effect at 12:01 a.m. Eastern Sunday.<\/p>\n\n\n\n

Despite the effort at reassurance, \u201cthere\u2019s still some folks out there recommending to their H-1B employees that they not travel right now until it\u2019s a little clearer,\u2019’ Leon Rodriguez, a partner at the Seyfarth law firm who was director of U.S. Citizenship and Immigration Services in the Obama administration.<\/p>\n\n\n\n

Other questions remain, some of them basic. \u201cWhat actually is the process for paying this $100,000,\u201d Rodriguez said. \u201cUsually, when an agency is going to charge a fee, there\u2019s a whole process. There\u2019s the creation of forms for collecting that fee. … At this point, we don\u2019t actually know what that process will be like.\u2019’

\u201cKey questions remain, such as whether the new fee will apply to universities and nonprofit research organizations, employers that Congress has exempted from the annual limit on H-1B visas,\u201d said Bo Cooper, partner at the immigration law firm Fragomen, Del Rey, Bernsen & Loewy.<\/p>\n\n\n\n

Here\u2019s a look at what the H-1B visa program is and what the Trump administration is doing to it.<\/p>\n\n\n\n

What are H-1B visas and who uses them?<\/h2>\n\n\n\n

Created by the 1990 Immigration Act, they are type of nonimmigrant visa, meant to allow American companies to bring in people with technical skills that are hard to find in the United States. The visas are not intended for people who want to stay permanently. Some eventually do, but only after transitioning to different immigration statuses.

An H-1B allows employers to hire foreign workers who have specialized skills and a bachelor\u2019s degree or the equivalent. They are good for three years and can be extended another three years, suggesting that there are now \u201caround 700,000 H-1B visa holders in the country and another half a million or so dependents,\u201d economist Stephen Brown of Capital Economics wrote in a commentary Monday.

At least 60% of the H-1B visas approved since 2012 have been for computer-related jobs, according to the Pew Research Center.<\/a> But hospitals, banks, universities and a wide range of other employers can and do apply for H-1B visas.<\/p>\n\n\n\n

The number of new visas issued annually is capped at 65,000, plus an additional 20,000 for people with a master\u2019s degree or higher. Those visas are handed out by a lottery. Some employers, such as universities and nonprofits, are exempt from the limits.

According to Pew, nearly three-quarters of those whose applications were approved in 2023 came from India.<\/p>\n\n\n\n

What did Trump do?<\/h2>\n\n\n\n

The White House announced the $100,000 fee. The application fee is currently $215, plus other relatively nominal processing charges. It took effect barely 24 hours later.<\/p>\n\n\n\n

Commerce Secretary Howard Lutnick said the fee would be applied annually, for a total of $600,000 over the maximum number of renewals allowed. The White House clarified Saturday that it was a one-time fee and said it would not apply to current visa holders.<\/p>\n\n\n\n

Trump also rolled out a $1 million \u201cgold card\u201d visa for wealthy individuals.<\/p>\n\n\n\n

The moves are certain to draw lawsuits charging that the president was improperly sidestepping Congress with a dramatic overhaul of the legal immigration system.<\/p>\n\n\n\n

Why target H-1B visas?<\/h2>\n\n\n\n

Critics say they undercut American workers, luring people from overseas who are often willing to work for less than American tech workers do. Staffing companies such as Tata Consultancy Services often supply Indian workers to corporate clients.<\/p>\n\n\n\n

\u201cTo take advantage of artificially low labor costs incentivized by the program, companies close their IT divisions, fire their American staff, and outsource IT jobs to lower-paid foreign workers,\u2019’ the White House said in its proclamation Friday.<\/p>\n\n\n\n

In a 2020 report, the left-leaning Economic Policy Institute found that 60% of the H-1B positions<\/a> certified by U.S. Labor Department are assigned wages below the median for the job.<\/p>\n\n\n\n

Brown at Capital Economics wrote that \u201cit is hard to disagree with the administration\u2019s argument that the program needs reform.\u2019’<\/p>\n\n\n\n

Giovanni Peri, director of the Global Migration Center at the University of California, Davis, said that abuses of the program \u2014 such as bringing in mid-level coders to replace higher-paid Americans \u2014 do occur but are relatively rare.<\/p>\n\n\n\n

Most H-1B visa holders, he said, really are highly skilled workers who are hard to find. \u201cMost of these people come in, and they have helped the productivity of firms; they have helped innovation,\u201d Peri said. \u201cThey have complemented the work of Americans, and they have allowed growth.\u2019\u2019<\/p>\n\n\n\n

What impact will the H-1B crackdown have?<\/h2>\n\n\n\n

Brown said that many tech firms can probably afford to pay $100,000 to bring in skilled workers.<\/p>\n\n\n\n

\u201cNonetheless,\u2033 he wrote, \u201cthe upfront fee will clearly be too high for many companies to stomach. Last year, the healthcare, retail and accommodation & food services sectors accounted for a quarter of H-1B visas between them, and firms in those sectors will probably find it harder to afford the fee.\u2033<\/p>\n\n\n\n

The higher fee \u2014 along with other Trump administration attempts to curb immigration \u2014 is likely to reduce the U.S. labor supply and push wages higher, Brown said.<\/p>\n\n\n\n

Foreign workers like Alan Wu are worried \u2013 and stunned by the speed with which Trump disrupted the H-1B process. \u201cCan you release some policy which impacts tons of people just like that?\u201d said Wu, who is working in Indianapolis as a data scientist for a pharmaceutical company.<\/p>\n\n\n\n

He is working legally on his student visa after earning a doctorate. He\u2019s failed to win the H-1B lottery for two consecutive years. And he\u2019s now rethinking his plan to live permanently in the United States, where he\u2019s lived for more than a decade. \u201cI am definitely concerned about my job now that the cost and risk of hiring a foreigner is so high,\u201d he said.<\/p>\n\n\n\n

Navneet Singh, who runs a consultancy \u201cGo Global Immigration\u201d in India\u2019s Punjab state, said changes to H-1B visa policies are likely to significantly impact future migration to the U.S., particularly from India.<\/p>\n\n\n\n

\u201cTrump is trying to suffocate new immigrants who are skilled, so that they won\u2019t take the jobs away from the average American. But by doing so, they will be making (U.S.) production expensive,\u201d Singh said.<\/p>\n\n\n\n

He said the new policy is likely to create advantages for competitors in other countries. \u201cCountries like France, Netherlands, Germany and Canada are set to gain from this move,\u201d he added.<\/p>\n\n\n\n

Some Indian students aspiring to pursue higher studies in the U.S. are disappointed. \u201cIt feels like a door closing,\u201d said one aspiring student who requested anonymity.<\/p>\n\n\n\n

What businesses will be hurt the most?<\/h2>\n\n\n\n

Greg Morrisett, dean and vice provost at Cornell Tech, said startups and small businesses are likely to be the most affected by the fees since there\u2019s \u201cno way they can\u201d pay them. Cornell Tech, for instance, has launched about 120 startups and the \u201cvast majority\u201d have students coming from overseas. The result? \u201cThey\u2019ll pick up and move to Europe or Asia, wherever they can find,\u201d he said.<\/p>\n\n\n\n

\u201cThe big tech companies will likely move a lot of operations and things into other countries. We saw this when, for example, you know, Ireland made it really attractive from a tax perspective. All of a sudden all the headquarters move to Ireland,\u201d Morrisett said.<\/p>\n\n\n\n

And startups, he added, \u201cthe next Amazon, the next Google will give up here and go somewhere else and then we won\u2019t have that advantage in the next generation of tech leadership.\u201d<\/p>\n\n\n\n

Reproduced from the Associated Press<\/p>\n","protected":false},"excerpt":{"rendered":"

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