US President Donald Trump announced that companies will have to pay the government $100,000 in order to secure an H-1B visa for a foreign employee. Trump signed an executive order in this regard on Friday. Under this, companies or applicants will now have to pay this hefty fee for the visa every year. Microsoft has recommended that H-1B and H-4 visa holders stay in the United States for the foreseeable future, according to an internal email. The email also strongly urged employees holding these visas who are currently outside the US to return by tomorrow, ahead of a looming deadline.
Making the announcement at the White House, US Commerce Secretary Howard Lutnick said that the new fee structure has been implemented to prevent “over-utilization” and to give priority to American workers. He said, “The H-1B visa fee will now be $100,000 annually and all big companies are ready for it.”
Additionally, the administration has launched a new immigration program called the “Gold Card.” Under this program, foreign nationals can expedite their visa process by paying $1 million (approximately Rs. 9 crore). Companies, meanwhile, will have to pay $2 million (approximately Rs. 18 crore) to expedite the process for their foreign employees. Commerce Secretary Howard Lutnick stated that the initiative aims to attract only top-level talent to the United States.
Importance of H-1B and new challenges
Approximately 65,000 H-1B visas are issued each year, with 20,000 seats reserved for those with graduate degrees from American universities. These visas are primarily for specialized fields such as IT, engineering, medicine, and finance. Google, Microsoft, and other tech giants have long argued that they don’t find enough trained talent in the United States. Therefore, H-1B visas are crucial. However, the new fee rules will significantly increase companies’ costs, and the technology industry is expected to be most affected.
Impact on India
India is the largest source of H-1B visa holders. Thousands of Indian professionals apply for this visa every year. The increased fees will place a significant burden on Indian IT companies and mid-level professionals. It’s likely that smaller companies and start-ups will not be able to afford the exorbitant fees, potentially reducing opportunities for Indians.
What was the fee earlier?
Until now, the fee for an H-1B visa was approximately ₹6.1 lakh (approximately ₹610,000). This has been increased to ₹900,000 (approximately ₹900,000). The White House claims this change will protect American workers and allow only top talent to come to the US.
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