The United States has made it challenging for new H-1B visa applicants by significantly increasing the application fee. To acquire this visa now, applicants must pay a hefty $100,000 fee, a sharp rise from the previous range of $1,000 to $8,000 USD. This move is aimed at tightly controlling the entry of skilled foreign labor.
'Top Talent Reserved Only for America'
While speaking in the Oval Office alongside President Donald Trump, Commerce Minister Howard Lutnick defended this measure. He stated, 'Is that person worth it for a company to pay $100,000 annually to the government? The purpose of immigration is to ensure Americans get jobs and that incoming individuals are of the highest talent. The President’s stance is clear — top talent is meant only for America, stop the nonsense.'
In a move that has startled Indian professionals working in the US since September 21st, immigration lawyers and companies cautioned H-1B visa holders and their families outside the US to return within 24 hours to avoid complications. However, the White House clarified that this fee applies only to new applicants.
70% of H-1B Holders Are Indian
The H-1B visa program, initiated in 1990 to hire foreign employees in specialized businesses, has historically bolstered US tech and trade sectors. According to the US Citizenship and Immigration Services (USCIS), over 70% of recently approved H-1B applications were by Indian nationals.
Leading beneficiaries of the visa program include Amazon (10,044 visas), Tata Consultancy Services (5,505), Microsoft (5,189), Meta (5,123), Apple (4,202), Google (4,181), Deloitte (2,353), Infosys (2,004), Wipro (1,523), and Tech Mahindra America (951).
'Misuse of the Visa Program'
President Trump justified the measure as a response to misuse within the H-1B visa system, claiming it has led to high-paid American jobs being replaced by less expensive, low-skilled foreign workers. He added, 'The misuse of the H-1B program is a threat to national security. American agencies have identified and investigated outsourcing firms relying on the visa for involvement in visa fraud, money laundering conspiracies, and other illicit activities to encourage foreign workers to come to the US.'
Commerce Minister Lutnick elucidated that the new fee aims to prioritize top-level talents. He mentioned, 'We will stop this practice. We will only keep extraordinary individuals at the top, not those who attempt to take jobs away from Americans. This decision will create jobs for businesses and Americans and add over $100 billion to the US treasury.'
'Pay the Fee or Hire an American'
When asked if the fee applies to current H-1B holders, Lutnick stated, 'For the first renewal, the company must decide. Is this person valuable enough to justify the $100,000 annual fee, or should they send them home and employ an American?'
White House Press Secretary Carolyn Levitt clarified, 'This is not an annual fee. It is a one-time charge that applies only when applying. Current H-1B visa holders outside the country will not face a $100,000 fee upon re-entry.'
Decision to Apply to New Visa Applications
She added that existing H-1B visa holders can still exit and re-enter by the same deadline they normally adhere to. This policy affects only new visa applications, not renewals, and not existing visa holders. It will be effective starting with the next upcoming lottery cycle.
This policy is expected to negatively impact Indian tech professionals and companies relying heavily on H-1B talent. Business groups like NASSCOM have warned of disruptions to ongoing projects. The move comes at a sensitive time when India-US trade talks are moving forward.
