$100,000 H-1B visa fee: Confusion, fears of brain drain and lawsuits at a glance
Trump’s sudden H-1B move rattles tech giants, students and future applicants
Dubai: The Trump administration’s abrupt $100,000 fee on H-1B visas has rattled employers, workers, and students worldwide. Announced Friday and implemented within 24 hours, the move has raised confusion, sparked fears of a brain drain, and is already expected to trigger lawsuits challenging its legality.
Here’s what to know:
What are H-1B visas?
Non-immigrant visas created in 1990 for US employers to hire foreign workers with specialised skills and a bachelor’s degree (or equivalent).
Valid for 3 years, extendable to 6. Around 700,000 holders in the US, plus about 500,000 dependents.
Annual cap: 65,000 visas, plus 20,000 extra for US master’s or higher degrees. Distribution via lottery.
In the last round (March), 339,000 people applied; 120,141 were selected.
About 60% of H-1B jobs since 2010 are computer-related.
Most approvals go to workers from India, followed by China (10%).
What did Trump announce?
A sudden $100,000 application fee, up from the previous $215 base fee.
Policy took effect within 24 hours.
Initially described as annual ($600,000 over six years) but clarified to be one-time only.
Does not apply to current visa holders or those already selected in the most recent lottery.
Applies to future applicants outside the US, starting with next year’s lottery.
Employers must show proof of the $100,000 payment before filing petitions.
Trump also introduced a $1 million “gold card” visa for wealthy individuals.
Lawsuits expected, with critics saying Trump bypassed Congress.
Why target H-1B visas?
White House argues the programme:
Suppresses US wages.
Encourages outsourcing of IT jobs.
Leads to layoffs of American staff.
Economic Policy Institute (2020): 60% of certified H-1B jobs paid below median wages.
Critics: Abuses exist but are relatively rare; most H-1Bs genuinely fill skill gaps and drive US innovation.
Who will be most affected?
Big Tech & corporations: Amazon (10,000 approvals since October 1), Tata Consultancy Services (5,500), Microsoft and Meta (5,000+ each), Apple and Google (4,000+ each), JPMorganChase and Walmart (2,000+ each). These firms rely heavily on H-1Bs.
Startups & small businesses: Least able to pay; risk losing talent or relocating abroad.
Healthcare, retail, hospitality sectors: Together account for 25% of H-1Bs; more likely to struggle with costs.
Universities & nonprofits: Still unclear if they’re exempt from the fee.
Applicants from India and China: Most exposed due to heavy representation in computer and IT fields.
Broader impact
Could reduce US labour supply, driving up wages but hurting competitiveness.
May deter skilled immigrants from studying or working in the US
Likely to fuel talent flight to the UK, Canada, France, Germany, and the Netherlands.
Startups may relocate abroad — risking loss of the “next Amazon or Google.”
Creates uncertainty and fear among current and prospective visa applicants.
Voices of concern
Alan Wu, data scientist in Indianapolis: Fears career disruption, calls cost too risky for employers.
Navneet Singh, consultant in India: Says the move will raise US production costs and benefit competitors.
Indian students: Describe the policy as “a door closing” on US opportunities.
Greg Morrisett, Cornell Tech dean: Sarns startups will shift abroad, depriving US of future tech leadership.
-- With AP inputs
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