A group of both Republican and Democrat lawmakers are pushing back on the $100,000 fee on the new H1-B visa applications and are seeking to get the United States President Donald Trump to work with the Congress on fixing the existing system instead, according to a report by Axios.
The lawmakers have called upon the US President and commerce secretary Howard Lutnick to negotiate with them ways to fix the issues in the existing H1-B program.
"Together, we should evaluate options that include restrictions on outsourcing firms, visa portability to counter wage suppression, revising eligibility and skill classifications, improving enforcement, and modifying the fee structure," read a letter by the lawmakers that Axios accessed.
The letter was led by Democrat lawmaker from California Sam Liccardo and was signed by republican lawmakers Jay Obernolte, Maria Salazar, and Don Bacon.
Sharing the Axios report on his X account, Liccardo wrote, “The Trump administration’s latest proclamation tacking $100,000 onto new H-1B visa applications threatens to shut out the best and brightest and keep fledgling startups from attracting the world’s greatest innovators. Today, I led a letter with five Republican and Democratic colleagues to President Trump and Secretary Lutnick, urging a more balanced reform that does not stifle innovation.”
What is H1-B visa program?
The H1-B visa allows American firms to hire people from other countries for jobs that require specialized skills. According to the US department of labor, “The H-1B program applies to employers seeking to hire nonimmigrant aliens as workers in specialty occupations or as fashion models of distinguished merit and ability. A specialty occupation is one that requires the application of a body of highly specialized knowledge and the attainment of at least a bachelor’s degree or its equivalent.”
{{/usCountry}}The H1-B visa allows American firms to hire people from other countries for jobs that require specialized skills. According to the US department of labor, “The H-1B program applies to employers seeking to hire nonimmigrant aliens as workers in specialty occupations or as fashion models of distinguished merit and ability. A specialty occupation is one that requires the application of a body of highly specialized knowledge and the attainment of at least a bachelor’s degree or its equivalent.”
{{/usCountry}}With the Trump administration looking to curb immigration through this process, it announced a $100,000 fee for every new application, the brunt of which may be suffered by foreign job-seekers in the US and the small tech firms in the country alike.
Indians constitute a significant portion of the H1-B visa holders in the United States. According to US administration data, Indians account for about 70% of all new H-1B visa allocations, followed by Chinese nationals at 11–12%. There are around 300,000 Indian workers currently in the US on H-1B visas, mostly employed in the technology and services industries.
Small tech firms worried
Democrat lawmaker Sam Liccardo represents Silicon Valley in the US House of Representatives. According to him, several emerging founders and venture capitalists have expressed concerns about the implications of the recently announced H1-B visa fee and how it may affect small firms, reported Axios.
“What I consistently hear from early stage innovators, venture capitalists and corporate leaders in Silicon Valley in quiet conversations is very different than what is heard at White House press conferences,” the report quoted him as saying.
US Chamber of Commerce sues Trump administration
Last week, the US Chamber of Commerce sued the Trump administration for the $100,000 fee on H-1B visa petitions. “The Chamber’s litigation argues that the new fee is unlawful because it overrides provisions of the Immigration and Nationality Act that govern the H-1B program, including the requirement that fees be based on the costs incurred by the government in processing visas,” said the US Chamber of Commerce.
Liccardo expressed hope that the new fee may be struck down, which may pave the way for reforms in the current H1-B system. However, it has always been a tricky issue.
"We need to get beyond the zero sum thinking that an immigrant coming to this country is taking the job away from a native born American," Liccardo said, according to the report, while also emphasizing the "enormous ripple effect of job creation throughout the economy" due to high-skilled immigration.