Big news related to H-1B visa has come out for Indians dreaming of jobs in America. The US Department of Homeland Security (DHS) has proposed an additional fee of US $ 103,265, or about Rs 99 lakh, on H-1B visa applications. If this proposal becomes a final rule, it could become extremely expensive for American companies to hire foreign workers and sponsor their visas.
H-1B visas are used specifically to hire foreign workers in technology, engineering and other specialized professions. Indians are among the biggest beneficiaries of this program. In such a situation, the proposed heavy duty is likely to especially impact Indian tech professionals and the American companies that employ them.
Know the complete plan and its effect in 8 points
1. DHS has proposed a new fee of US$103,265 for filing an H-1B petition. This amount will be separate from the existing H-1B petition fee and other applicable fees will also have to be paid in addition to it. This means that a company may have to pay an additional amount of about Rs 99 lakh in addition to the existing expenses to sponsor an H-1B employee.
2. The proposal is not for citizens of any one country. This will apply to eligible H-1B applications regardless of the employee’s nationality. However, the H-1B program has a large share of Indian professionals, especially in the technology sector, so Indians could be the most affected if the heavy tariffs are implemented.
3. The proposed fee will apply to H-1B petitions that are subject to the annual cap. This will also include eligible petitions filed under the higher degree exemption. However, some cap-exempt petitions have been kept out of it. These include petitions filed by some universities, research organizations and government research institutes.
4. Under current law, the H-1B program has a general cap of 65,000 visas per year. Additionally, 20,000 additional visas are available for foreign students and professionals who have obtained a master’s degree or higher degree from a US institution.
5. If the additional fee of more than $100,000 is implemented, it will become significantly more expensive for companies to sponsor an H-1B worker than before. This may especially impact employers who want to hire new foreign workers under the annual H-1B limit. Companies may be more cautious about recruiting foreign candidates given the potentially expensive sponsorship expenses.
6. According to a notice published in the Federal Register, a fee of $103,265 is proposed to be charged when filing an H-1B petition and this will be in addition to all other applicable fees. DHS says the purpose of this funding is to offset the federal government’s expenses related to adjudication, investigation, and administration of legal immigration programs. The department estimates that this fee could generate an income of about $8.8 billion every year.
7. US Vice President J.D. Vance supported the proposed tariffs, saying, “If an American corporation needs workers, it should hire and train Americans.”
8. Given the large participation of Indian professionals in the H-1B program, the proposed fee could have a significant impact on India’s skilled IT and tech workers. However, the fee is proposed to apply not directly to Indian applicants but to eligible H-1B petitioners.