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US H-1B visa fee: Industry experts say no immediate concerns, warn of long-term impact
The proclamation for $100,000 fee for visa petitions, signed by US President Donald Trump, came into effect on Sunday (September 21).
After the chaos regarding the United States H-1B visa fee hike eased following clarifications on the new rule by the White House, experts said there are no immediate concerns for the industry.
The proclamation for $100,000 fee for visa petitions was signed by US President Donald Trump last Friday (September 19), and came into effect on Sunday (September 21).
However, experts see no cause for worry at present, given that the fee does not come into play till the upcoming application cycle, PTI news agency reported.
“For the next six months to one year, there'll be no impact because for last year, they (companies) already filed H-1B petitions and the lottery system will operate,” PTI quoted former Infosys CFO Mohandas Pai as saying.
Pai added that the fee was only for a petition filed after the new rule kicked in, adding that it would take six months to one year for the application to come up.
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“So, there's no worry for the next six months to one year, and after that we will see what happens,” the former Infosys CFO added.
The announcement of the visa fee hike caused confusion among both the tech companies and their employees. While several organisations wrote to their employees who were outside the US, asking them to return to the country immediately, social media platforms showed videos of Indian tech workers disembarking from US-bound aircraft after the sudden announcement.
However, White House press secretary Karoline Leavitt and other officials clarified that the $100,000 is a one-time fee, and would only be applicable on new petitions. “This is NOT an annual fee. It’s a one-time fee that applies only to the petition,” Leavitt posted on X.
She further stated that current visa-holders would not be charged. “H-1B visa holders can leave and re-enter the country to the same extent as they normally would; whatever ability they have to do that is not impacted by yesterday’s proclamation,” Leavitt added.
She said that the rule does not apply to renewals, adding that it would be applicable in the upcoming lottery cycle.
However, while the clarification may allay concerns for now, experts have cautioned about a delayed impact, which might require an assessment of business strategies by companies in the IT industry. This is if the rule is extended beyond its validity period of 12 months.
American dream no longer possible, say experts
Ganesh Natarajan, chairman of GTT Data Solutions Ltd and 5F World, said the ‘American Dream’ would no longer be possible for students and other first-time employees in the US.
“Companies in future will restrict cross-border travel and more work will be done through GCCs in countries like India, Mexico and Philippines where talent will be available,” PTI quoted Natarajan as saying.
He added that the current talent model will be altered if the rule stays. “This could benefit countries like India in the long term but it will take a couple of years for the new work and talent model to crystallise,” Natarajan added.
Sajai Singh, Partner at JSA Advocates and Solicitors, asserted that while the “immediate shock” has been “diluted”, this would just give “more time for reality to set in”, according to PTI.
“Net-net, there may be a slight delay in the impact. But the impact will be there, requiring reassessment of business strategies,” Singh said.
Singh added that Indian IT companies which rely heavily on H-1B visas could face significant increase in costs, leading to disruption in business models and revenue streams.
