The Trump administration on Friday signed an executive order, slapping a USD 100,000 annual application fee for H-1B visas. US President Donald Trump’s latest crackdown aims to reduce the overuse of the program. According to White House officials, the measure is designed to encourage companies to prioritise hiring American workers while at the same time permitting companies to hire the best of the best temporary foreign workers in specialised fields.
Commerce Secretary Howard Lutnick described the hike in application fee as a deliberate strategy to preserve opportunities for highly skilled American workers. “A company that wants to buy an H-1B visa. it’s USD 100,000 per year,” Secretary Lutnick said, while explaining that if companies are going to train people, they will be Americans.
The H-1B program, which was originally designed to attract highly skilled international workers for specialised technical roles, was under scrutiny for a long time. It particularly impacts Indian IT professionals who comprise the largest group of beneficiaries. Indian IT service companies such as TCS, Infosys, and Wipro have historically used H-1B visas to bring junior and mid-level developers to the United States to train them.
The H-1B visa retains its current framework – 3 years with one possible renewal for a total of 6 years. The Trump administration noted that the visa quotas will maintain the status quo. The same number of visas will be issued, but fewer applications will be due to cost barriers. Current annual limits stand at 65,000 regular H-1B visas plus 20,000 for advanced degree holders from US universities. While no official start date has been announced, the changes may roll out within the next few weeks.
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