Trump imposes $100,000 fee for H-1B visa holders, potentially affecting Indian IT professionals dramatically
The Trump administration has announced plans to implement a significant change in the H-1B visa program, as part of a wide-ranging immigration crackdown. The proposed change, which involves a $100,000 annual fee for H-1B work visas, has sparked heated debates within the tech industry.
Aaron Reichlin-Melnick, an immigration lawyer, has questioned the legality of the new fees, stating that Congress has only authorized the government to set fees to recover the cost of adjudicating an application. This concern is shared by many, as the new fee could add millions of dollars in costs for companies, particularly impacting smaller tech firms and start-ups.
The H-1B visa program is crucial for the tech industry, bringing in highly skilled workers essential to filling talent gaps and keeping firms competitive. Supporters of the program, including Tesla CEO Elon Musk, have expressed their concerns about the potential impact of the new fee. Major US tech companies such as Amazon, Meta, Microsoft, and JP Morgan have expressed urgent internal concerns and taken actions to address the fee's impact, suggesting a significant opposition among large firms in the tech industry.
The proposed change represents the Trump administration's most high-profile effort yet to rework temporary employment visas. U.S. Commerce Secretary Howard Lutnick, however, has stated that training Americans should be prioritized over bringing in foreign workers. This stance is in line with the H-1B visa bill introduced, which aims to scrap the lottery and end the Optional Practical Training (OPT) program for foreign workers.
The new fee for H-1B visas could deter global talent from coming to the U.S., potentially reducing its ability to innovate and grow the economy. Some analysts suggest that the fee may force companies to move some high-value work overseas, potentially hampering America's position in the high-stakes artificial intelligence race with China.
The tech industry has contributed millions of dollars to Trump's presidential campaign, making the threat to crack down on H-1B visas a major flashpoint. Notably, the largest beneficiary of H-1B visas in 2020 was India, accounting for 71% of approved beneficiaries, while China was second at 11.7%.
In a surprising turn of events, Howard Lutnick stated that 'all the big companies are on board' with the $100,000 fee for H-1B visas. However, the number of companies opposing the fee was not explicitly stated.
In other related news, Trump has signed an executive order on Friday to create a 'gold card' for individuals who can afford to pay $1 million for U.S. permanent residency. This move has raised questions about the administration's commitment to promoting diversity and inclusivity in the immigration system.
As the debate continues, it remains to be seen how the tech industry will navigate these changes and what impact they will have on the future of the H-1B visa program.
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