Many foreign skilled workers are likely to seek employment elsewhere as a result of President Donald Trump’s decision to raise the application fee for H-1B  visa holders.
The steep application fee increase, which is set at $100, 000, is intended to encourage US businesses to hire more skilled workers from the United States. However, it hits particularly hard on large technology companies because they rely heavily on foreign-trained workers.
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Under President George H. W. Bush, the H-1B visa was established in 1990. The majority of H-1B visa recipients today are Indian tech workers; in second place, with 11.7 percent, they received 71 percent of approved H-1B visas last year.
Experts have warned that Trump’s decision could stifle US economic growth because higher wages for employers will make it harder to attract foreign talent. Additionally, it could cause a near-term “brain drain” for skilled university graduates who are forced to move to other nations.
What has the Trump administration said about H-1B visas?
Trump’s administration announced that US businesses must pay $100, 000 per H-1B application starting at 12:01 AM ET (04:01 GMT) on September 21 in a decree signed by him on September 19.
Depending on the size of the company applying for the visa, the fees previously ranged from $2, 000 to $5, 000. US businesses can hire foreign workers with special skills thanks to the H-1B visa, which was initially granted for up to three years. The application fee must be paid once more when extending the visa, but it can be extended for up to six years.
The H-1B program allows employers to obtain 65, 000 visas per year for temporary foreign workers in specialized fields, as well as another 20, 000 visas for advanced degree holders, particularly in STEM (science, technology, engineering, and mathematics) industries.
The White House stated on Sunday that “the fee is a one-time fee upon submission of a new H-1B petition.” The regulations will not apply to applicants who have H-1B visas or have submitted applications before September 21, they added.
In addition, the Department of Homeland Security will now prioritize applicants with high-skilled, well-paid positions in the H-1B lottery over those with lower salaries. According to the Trump administration, other H-1B visa modifications are also being considered.
H-1B is misused by businesses when they hire workers for less money than they would have to pay US employees, causing jobs to be lost to Americans, as critics have long argued.
The Indian government announced on Saturday that it was looking into the “full implications” of the new regulations. The disruption caused to families is likely to result in this measure, according to India’s Ministry of External Affairs.
Which sectors are most affected?
The majority of the current H-1B positions are in tech-related fields, or roughly two thirds. According to the US Citizenship and Immigration Services, Apple, Google, Meta, Microsoft, and Amazon all had the highest numbers of H-1B visa holders employed last year.
As a result, Trump’s new fee has shocked the tech sector. For instance, Microsoft forewarned employees that current US visa holders should “stay in the US for the foreseeable future.”
At one point, Elon Musk, one of Tesla’s CEOs, Sundar Pichai, Sundar Pichai, CEO of Microsoft Satya Nadella, and SpaceX’s CEO were H-1B visa holders.
Musk stated on his X platform in 2024, “The reason I’m in America is because of H-1B, along with so many important people who built SpaceX, Tesla, and hundreds of other companies that made America strong.”
What potential advantages does this have for other nations?
Many nations are looking to increase their technological and STEM-related expertise, and they may be waiting to hire foreigners who are unable to work in the US as a result of the H1-B visa’s rising cost.
United Kingdom
According to people with knowledge of the discussions within the Treasury department, British Prime Minister Keir Starmer is reportedly considering proposals to eliminate visa fees for skilled foreigners in response to the price increase for H-1B visas.
As a way to encourage economic growth, Starmer’s “global talent task force” is developing ideas to attract top international scientists to the UK, including academics and digital experts. Top-level professionals may be able to avoid paying any visa fees.
China
On October 1, Beijing will introduce the new K Visa, which aims to entice highly skilled STEM workers.
Successful applicants will be able to work and study in China without having previously been offered a job or a research position.
China’s Ministry of Foreign Affairs said it “welcomes” top-tier talent from all over the world despite declining to comment on the US’s changes over the weekend.
South Korea
Kang Hoon-sik, the president’s chief of staff, stated on Monday that he had instructed ministries to find ways to sway foreigners’ attention to South Korea’s lack of scientific and engineering visas.
Kang declined to provide further information about possible actions, but said the government intends to concentrate its budget for the upcoming year’s budget on initiatives involving artificial intelligence (AI) and other areas aimed at promoting a technology-led economy.
Canada
More candidates were invited, as a result of Canada’s reduction in the cut-off score for its Comprehensive Ranking System, which regulates applications for permanent residency from skilled workers.
