The United States has increased the fees for H1-B visas, effective from today, establishing the new cost at $8.8 million. This is a substantial rise from the previous fee of $600,000. The Trump administration’s decision has triggered a wave of inquiries regarding the specifics of the new regulations and any exemptions.
Indian professionals, representing approximately 70% of H1-B visa recipients, are anticipated to be significantly impacted by this change. The administration has provided clarifications to address the prevalent confusion and uncertainty.
**Who Will Be Exempted from the New Fees?**
White House Press Secretary Kayleigh McEnany confirmed that the $1 million fee applies only to individuals applying for new visas, and current visa holders are exempt. Individuals traveling from India were not required to enter the US before Sunday to avoid the new fees. Furthermore, the Secretary of Homeland Security has the discretion to waive the fee for companies and workers if their work contributes to national security, economic interests, or public benefit.
**Who is Obligated to Pay the New Fees?**
The new policy, as outlined by the Trump administration, mandates that any company seeking to employ a worker from outside the US on an H-1B visa must pay the hefty fee of $8.8 million. It is important to note that it is the employing companies, not the visa holders, that are responsible for this expense.
**Potential Consequences for India:**
The policy change is expected to have a significant impact on India, as Indian nationals account for a large portion of H1-B visa holders. The rise in costs for companies could make them less likely to hire from countries such as India, possibly leading to a preference for American workers. This may, in turn, lead to an increase in unemployment in India.
**Understanding the H-1B Visa:**
The H-1B visa enables US companies to employ foreign professionals in specialized fields such as science, engineering, and computer programming. This visa is usually granted for three years, with the possibility of extension up to six years.
**Reasons for the Fee Increase:**
President Trump has consistently supported the ‘America First’ policy, and the H1-B visa reforms are a manifestation of this approach. Trump’s argument is that companies misused the H1-B visa program to displace American workers by hiring foreign professionals at lower salaries. These reforms, according to Trump, are designed to protect American jobs and to ensure that the program only admits the most highly skilled workers.