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Why Trump is raising H-1B visa fees to $100,000 and who profits
President Donald Trump is set to sign a proclamation that will impose a hefty $100,000 fee for each H-1B visa issued.
President Donald Trump is planning to introduce a sweeping reform to the H-1B visa program that includes a staggering $100,000 fee, Bloomberg reported.
Why the changes?
According to the report, the administration believes the H-1B program is exploited through loopholes that allow companies to hire lower-paid foreign workers, undercutting US salaries.
The proclamation, which may be signed as early as Friday, introduces a hefty $100,000 fee for each H-1B visa entry to limit overuse.
Additionally, Trump plans to direct the Labor Secretary to revise prevailing wage levels through rulemaking, ensuring H-1B workers are paid comparably to Americans, preventing wage suppression.
Which sector faces the biggest impact?
The technology industry will likely bear the brunt of these changes. According to Bloomberg, tech companies heavily rely on H-1B visas to fill critical roles in software development, engineering, and data science. The new fee and higher wage requirements could significantly increase hiring costs, potentially pushing firms to invest in domestic training or shift operations offshore.
Also Read: 'End of H-1B program…’: Experts warn against Trump's latest move amid immigration crackdown
Current H-1B fees vs. the proposed overhaul
Currently, the H-1B visa process involves a $215 fee to register for the annual lottery and a $780 fee for Form I-129, the employer-filed petition for a non-immigrant worker. The proposed $100,000 entry fee would dramatically increase costs, applying to each approved H-1B visa to restrict access and deter exploitation.
Also Read: Amazon, Microsoft among companies sponsoring more H-1B visas than before: Report
What's wrong with the current system?
Each year, up to 85,000 new H-1B visas are issued through a lottery system. But the system has been criticized for being easy to exploit. According to Bloomberg, some staffing and outsourcing companies flood the lottery with multiple applications, giving them an unfair advantage.
(With inputs from Bloomberg)
