$100,000 fee for H-1B: The new legal route Trump is pursuing, Pg13

US administration proposes a new $103,265 H-1B visa fee through formal rulemaking, potentially impacting Indian workers and IT firms significantly.

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Key Highlights:

  • The US administration has proposed a new fee of $103,265 on H-1B visa petitions.
  • This fee would apply to cap-subject H-1B petitions, including those for advanced-degree holders.
  • The proposal is being pursued by the Department of Homeland Security (DHS) through a formal rulemaking process.
  • This new attempt follows a US court striking down a similar $100,000 charge imposed earlier by presidential directive.
  • Indian nationals, who are the largest beneficiaries of the H-1B program, stand to be most affected.
H1B Visa.jpg

H1B Visa.jpg

Detailed Insights:

  • The proposed fee would be paid by sponsoring employers in addition to existing H-1B fees.
  • The DHS estimates this fee could generate approximately $8.8 billion annually, based on 85,000 fee-paying petitions.
  • The funds are intended to support costs across the broader US immigration system, not just H-1B processing.
  • The policy aims to disincentivize employers from hiring foreign workers unless their specialized skills are genuinely needed.
  • The previous $100,000 charge was ruled unconstitutional by a federal court, which deemed it a tax that only Congress could levy.
  • The current proposal relies on Section 286 of the Immigration and Nationality Act, which grants the DHS power to set fees for immigration services.
  • Nasscom has urged the US government to consider the H-1B program's role in addressing short-term skill gaps.
  • Between October 2022 and September 2023, Indian nationals received 72% of the nearly 4 lakh H-1B visas issued.

Key Concepts Involved:

  • H-1B Visa: A non-immigrant visa that allows US employers to temporarily employ foreign workers in specialty occupations.
  • Department of Homeland Security (DHS): A US federal executive department responsible for public security, including immigration enforcement.
  • Immigration and Nationality Act (INA): The foundational body of US law governing immigration and naturalization.
  • Notice-and-Comment Rulemaking: A formal process used by US federal agencies to create or amend regulations, involving public input.
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