New Delhi: In a significant development, the Donald Trump administration on Monday issued a proposed rule aimed at officially imposing a fee of more than USD 100,000 on H-1B visas for foreign workers. It is important to note that Trump had temporarily introduced the fee last year, but it was blocked by the courts. The new proposal has now been introduced against this backdrop.
Experts are of the opinion that the hike in H-1B visa fees is expected to be particularly difficult for Indians, who are the biggest beneficiaries of the visa programme. The Donald Trump administration on Monday proposed imposing a USD 103,265 fee on all H-1B visa applications subject to the annual cap. This would also include the additional category of 20,000 visas available to applicants holding a master’s degree or higher from a US university.
According to the reports, the US Department of Homeland Security (DHS) notice states that the proposed fee will be charged separately, in addition to the existing H-1B application fee. The department further added that the fee will apply only to H-1B applications that are subject to the annual cap. H-1B applications exempt from the annual cap will not be covered under the proposal.
The department said the proposed fee is intended to recover costs incurred across various government agencies. Keeping the fee separate is aimed at making it easier to track, allocate and report the revenue generated from it. For this purpose, the department has proposed introducing an additional H-1B fee.
Here are some of the key details:
- The proposal comes nearly a month after a petition was dismissed by a federal appeals court.
- The petition had sought a stay on a district judge’s order that struck down the Trump administration’s plan to impose a USD 100,000 fee on H-1B visa applications.
- In the US, 65,000 H-1B visas are issued each year under the regular category.
- In addition, 20,000 visas are reserved for foreign workers who hold a master’s degree or higher from a US university.
- Indians have historically received the highest number of H-1B visas.
What Impact Will It Have On Indians?
It is important to note that the companies can hire foreign workers in specialised fields such as technology, engineering, education and research under the H-1B programme. Each year, the United States issues 65,000 regular H-1B visas, along with an additional 20,000 visas for workers with advanced degrees. The increase in the fee is expected to have the greatest impact on Indians.
Reports suggest that in fiscal year 2025, more than 70 percent of H-1B visa recipients were from India, followed by China at 12 percent, with the remaining visas going to applicants from other countries. Naturally, since Indians account for the largest share of H-1B visa recipients, they are likely to be affected the most. The higher fee will make it more expensive for US companies to hire Indian workers.
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