US Imposes $100,000 H-1B Visa Fee, Shaking Tech Sector
New policy aimed at protecting US jobs could raise costs for tech giants and outsourcing firms reliant on foreign talent.
The White House has implemented a new policy that imposes a staggering $100,000 annual fee on H-1B visas, sending shockwaves through the US technology industry. The move, effective immediately, is positioned as a measure to protect American jobs but is expected to significantly increase operational costs for tech companies that rely on high-skilled foreign workers.
The H-1B visa program has long been to fill talent gaps in specialized fields. Tech giants like Amazon, Google, and Microsoft are among the top sponsors of H-1B visas, using the program to recruit top engineering and computer science talent from around the world. The new fee represents a monumental increase from the previous cost, which was only a few thousand dollars.
Administration officials argue the fee is designed to discourage companies from using the program for lower-skilled positions and to encourage the hiring of American workers. However, industry groups have warned of severe consequences. The policy could disrupt business continuity for onshore projects and may lead to , according to Nasscom, a prominent tech industry body. There are also concerns that the high cost could make the program economically unviable for many companies, potentially leading to a decrease in job offerings in the US.
The economic impact of the H-1B program has been a subject of debate. While some studies suggest it has a positive effect on innovation and job creation, others have pointed to in the tech sector. This new policy is set to intensify that debate, with its full effects on the tech industry and the broader US economy yet to be seen.