President Donald Trump has announced a dramatic change to the H-1B visa program. A new rule now requires a $100,000 fee for each new application. This fee is in addition to the existing smaller visa fees. The goal of this change is to stop the misuse of H-1B visas and make sure American workers are not replaced by lower-paid foreign workers.
The rule states that new H-1B visa applications will not be accepted unless the fee is paid. H-1B visas are special work visas that allow skilled foreign workers to come to the United States for jobs like technology, science, and engineering. This change affects companies that rely heavily on foreign workers, particularly in technology and consulting. Some companies may get exceptions if the visa is considered essential to national interest, but these will be decided case by case.
The administration has said that the move is necessary because H-1B visas have been used in ways that hurt American workers. Many companies hire foreign workers at lower wages instead of hiring qualified Americans. This has caused wage suppression and fewer opportunities for U.S. workers in fields like science, technology, engineering, and math.
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How the H-1B Process Works
H-1B visas are awarded through a lottery system because there are more applications than visas available. Every year, 85,000 new H-1B visas are offered. Companies first register online in March. The lottery is held in April. Winning companies can then file full applications starting in May. Most applications are approved by September.
Currently, companies pay a registration fee of $215 and other smaller filing fees. With the new $100,000 fee announced by President Trump, the cost of applying for an H-1B visa will increase dramatically, especially for smaller companies that use the program to hire lower-paid workers.
The U.S. government agency that handles visas, USCIS (U.S. Citizenship and Immigration Services), will apply closer scrutiny to applications under the new rules. This means officers will examine applications more carefully to ensure compliance.
The lottery system has faced criticism in the past. Some companies flood the system with applications to increase their chances of winning. Changes in recent years have aimed to reduce this practice. The new fee adds another layer of cost and complexity to the process.
Impact on Companies and Workers
The tech and consulting industries are expected to feel the biggest impact. Many of these companies hire a large number of H-1B workers. Some smaller firms rely on H-1B visas to fill positions at lower costs. The new fee could make it much more expensive for these companies to hire foreign workers.
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The administration has also asked the Labor Department to revise the rules for wages paid to H-1B workers. Joseph Edlow, Director of USCIS (U.S. Citizenship and Immigration Services), said that closer scrutiny will be applied to H-1B applications to make sure the program is not abused.
Stocks of companies that rely on H-1B visas have already reacted to the news, dropping in trading after the announcement. Officials say these changes are part of a broader plan to ensure fair treatment for American workers.
In addition to the fee, H-1B applications will face stricter review under the new rules. The $100,000 fee and wage revisions represent a major shift in how the H-1B visa program operates. It is designed to limit abuse, protect American jobs, and ensure fair wages. Companies planning to hire foreign workers will need to adjust to the new rules immediately.