The United States, under former President Donald Trump, has implemented a significant increase in the fees associated with H1-B visas, raising the cost from $600,000 to $8.8 million. This new fee structure took effect on September 21st, sparking numerous questions among H1-B visa holders and applicants. This includes details about who will be affected and who may be exempt.
This move is expected to disproportionately affect Indian professionals, who constitute approximately 70% of H1-B visa recipients. A senior Trump administration official has clarified the details to address existing confusion.
**Exemptions from the New Fees:**
According to White House Press Secretary Kayleigh McEnany, the $1 million fee is solely applicable to new visa holders, while current visa holders are exempt. Individuals rushing to the US from India were not required to arrive before Sunday to avoid the new fee. Additionally, the Homeland Security Secretary retains the discretion to waive the fee for any company or worker whose activities are deemed to be in the national security, economic interest, or public good of the United States.
**Who Must Pay the New Fees?**
As per the order issued by the Trump administration, any company wishing to bring a worker from outside the US on an H-1B visa will be required to pay the substantial fee of $8.8 million. It is crucial to understand that this rule applies to the companies employing the workers, not the visa holders themselves.
**Potential Impact on India:**
Given that around 70% of the workers on H-1B visas are Indian, the increase could significantly affect the country. As the cost of employing foreign workers rises for companies, they may become less inclined to hire from countries like India, instead prioritizing American workers. This could potentially lead to an increase in unemployment rates in India.
**What is an H-1B Visa?**
The H-1B visa is a type of work visa that allows US companies to employ foreign professionals in specialized occupations, such as scientists, engineers, and computer programmers. These visas are typically granted for a period of 3 years, with the possibility of extension up to 6 years.
**Rationale Behind the Fee Increase:**
President Trump, consistent with his ‘America First’ policy, stated that the H-1B visa program was intended to attract highly skilled workers, but its use had been exploited. Companies, allegedly, used the visa to bring in foreign professionals at lower salaries, displacing American workers. The new regulations, according to Trump, aim to protect American jobs and ensure that only those with high-level skills are granted entry.