1 week ago
US Proposes $103,265 H-1B Fee, Threatening Indian Hiring
The H-1B program lets US companies hire foreign workers for specialized jobs.
The US government wants companies to pay an extra $103,265 for many new H-1B applications.
The company, not the worker, would pay this money.
The proposal would apply to visas counted under the yearly limit, including some people with advanced degrees from US universities.
It would not apply to many universities and research organizations.
The government says the fee could protect American jobs and help pay immigration-system costs.
Critics say it could make useful hiring too expensive and send some jobs overseas.
Indian workers may be affected most because they receive most approved H-1B petitions.
The plan is still being reviewed and could face lawsuits before becoming final.
The Department of Homeland Security proposed a $103,265 fee on new H-1B petitions subject to the annual cap.
Employers would pay the fee when filing, in addition to existing H-1B charges; the proposal is not yet in force.
The fee would cover 65,000 regular-cap visas and 20,000 advanced-degree visas, but exclude many cap-exempt petitions.
DHS says the charge could raise about $8.8 billion annually and discourage employers from replacing qualified US workers with foreign workers.
Indian nationals received 71% of approved H-1B petitions in fiscal year 2024, while industry groups warn the fee could hurt Indian IT firms, startups and workers.
- Who
- The US Department of Homeland Security proposed the fee; US employers, foreign H-1B workers and Indian technology companies could be affected.
- What
- DHS proposed an additional $103,265 employer-paid fee for each new H-1B petition subject to the annual cap.
- Where
- The proposal concerns the United States H-1B immigration program.
- When
- The proposal was announced on Monday and opened for a 30-day public-comment period; the articles cite fiscal year 2024 data and legal rulings from June and July.
- Why
- DHS says the fee would recover immigration-system costs and discourage employers from choosing foreign workers over qualified Americans; critics say it could make legitimate hiring impractical.
US Administration
Industry and Critics
Protecting American workers
US Administration
The administration says some companies hire H-1B workers while laying off US employees, potentially suppressing wages and reducing opportunities for American graduates.
Industry and Critics
Nasscom says H-1B visas help address short-term US skill shortages when sufficiently skilled American workers are unavailable.
Effect on employers
US Administration
DHS says a six-figure fee would make employers less likely to choose an H-1B worker over a qualified American unless specialized foreign skills are genuinely needed.
Industry and Critics
Nasscom and the Foundation for India and Indian Diaspora Studies say the fee could make legitimate hiring economically impractical, hurt startups and push some high-value jobs overseas.
Legal authority
US Administration
DHS is relying on its statutory fee-setting authority under Section 286 of the Immigration and Nationality Act and formal notice-and-comment rulemaking, rather than the presidential directive used for the earlier fee.
Industry and Critics
Immigration lawyers and legal commentators argue that DHS may lack authority to impose a revenue-generating charge without congressional authorization, and note that the fee would be paid without any guarantee that a petition is approved.
Key facts
- Proposed fee
- $103,265 per qualifying new H-1B petition
- Who pays
- The sponsoring US employer at the time of filing
- Covered visas
- 65,000 regular-cap visas and 20,000 visas for workers with qualifying advanced degrees from US universities
- Excluded petitions
- Many cap-exempt petitions filed by universities, affiliated nonprofits, nonprofit research organizations and government research organizations; the fee would not automatically apply to every extension or transfer
- Estimated annual revenue
- About $8.8 billion, based on 85,000 fee-paying petitions
- Indian share
- People born in India accounted for 71% of approved H-1B petitions in fiscal year 2024
- H-1B approvals for Indian IT majors
- Infosys, TCS, HCL and Wipro together received approval for about 20,000 employees between October 2022 and September 2023
Quotes
US Department of Homeland Security
US government department that proposed the new H-1B fee
“Given that demand for H-1B workers greatly exceeds the statutory cap, this fee could also have the indirect benefit of better protecting the wages and job opportunities of US workers, as the H-1B program is intended to do.”
financialexpress.com
“If an American corporation needs workers, it should hire and train Americans.”
indianexpress.com
Nasscom
Indian technology industry association responding to the proposed fee
“The H-1B visa programme has long served an important purpose in addressing short-term skill gaps in the US.”
indianexpress.com
Sources
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