Hike in H-1B visa fee sparks criticism for its potential harm to small businesses and startups under Trump's plan
US President Donald Trump has signed a proclamation introducing changes to the H-1B visa program, including a $100,000 fee that will be paid by employers on behalf of the workers they employ from outside the United States.
The H-1B visa fee, however, is not an annual fee and doesn't apply to transfers. Instead, it is a one-time fee per petition at the time of filing and is valid for 12 months, subject to review afterwards.
The proclamation does not specify a yearly payment. This new fee has been met with concern and criticism from various quarters, with some suggesting it might cause a shift towards outsourcing H-1B workers.
Khanderao Kand, from the Foundation for India and Indian Diaspora Studies, called the H-1B fee "a very unfortunate policy." Deedy Das, a partner at Menlo Ventures, stated that the fee as mentioned in the executive order contradicts Lutnick's statement at the White House press briefing about the fee being for a total of six years.
Ajay Bhutoria, a former advisor to Joe Biden, believes that the changes in the visa policy could have a colossal impact on small businesses and startups, as well as drive away skilled professionals from the US. Navroop Singh, a social media user, expressed the sentiment that the "American dream is now over for Indians" due to the changes in the H-1B visa program.
The H-1B visa program was originally designed to allow US companies to hire highly skilled foreign professionals for jobs that American workers or permanent residents cannot fill. The visa has been used to bring in overseas employees willing to accept salaries around $60,000 a year, well below the six-figure pay that many US tech workers typically earn.
The H-1B visa is not limited to tech industries. An unnamed senior fellow at the American Immigration Council pointed out that the visa is used not only for tech but also for healthcare workers and other skill sets. Some have argued that the H-1B fee could potentially lead to a shortage of doctors in the US due to the additional costs for hospitals.
The new H-1B visa fee has caused concern within the Indian IT sector, with Infosys and Cognizant shares reportedly tumbling due to Trump's $100,000 H-1B visa fee plan. The fee has been criticized as "reckless" by some, including Congressman Raja Krishnamoorthi, who believes it weakens the US economy and security.
On the other hand, some social media users have expressed the opinion that Trump's H-1B fee could potentially harm the American economy, while others have suggested that it might cause a shift towards outsourcing H-1B workers.
The implications of the new H-1B visa fee are yet to be fully understood, but one thing is clear: it marks a significant change in the H-1B visa program, a change that will likely have far-reaching effects on both the US and global economies. The fee will be subject to review after 12 months, providing an opportunity for further assessment and potential adjustments.
Read also:
- Federal petition from CEI seeking federal intervention against state climate disclosure laws, alleging these laws negatively impact interstate commerce and surpass constitutional boundaries.
- Duty on cotton imported into India remains unchanged, as U.S. tariffs escalate to their most severe levels yet
- Steak 'n Shake CEO's supposed poor leadership criticism sparks retaliation from Cracker Barrel, accusing him of self-interest
- Hydrogen Energy: Sustainable Innovation or Resource Exploitation?
