The United States has introduced new fees for H1-B visas, effective from September 21st, increasing the cost to $8.8 million, a significant jump from the previous $600,000. This decision by the Trump administration has led to questions regarding its applicability and exemptions.
Indian professionals are likely to be most affected by this change, given that approximately 70% of H1-B visa holders are Indian nationals. The administration has released clarification to address concerns and uncertainties surrounding the updated policies.
**Who is Exempt from the New Fees?**
White House Press Secretary Kayleigh McEnany confirmed that the $1 million fee applies only to new visa applicants, with existing visa holders unaffected. Individuals travelling from India to the US were not required to reach the US before Sunday to avoid the new fees. Moreover, the Secretary of Homeland Security can waive the fee for companies or workers involved in activities related to national security, economic interests, or public benefit.
**Who is Subject to the New Fees?**
The revised order mandates that companies hiring workers from outside the US on H-1B visas must pay the $8.8 million fee. It is important to note that it is the employing company that bears this financial responsibility, not the visa holders.
**Potential Consequences for India:**
With Indians making up about 70% of H1-B visa recipients, the new fees could have repercussions for India. The increased costs for companies could lead to a reduction in hiring from countries like India, potentially favoring American workers instead. This shift may contribute to higher unemployment rates in India.
**Understanding the H-1B Visa:**
The H-1B visa is a work visa that enables US companies to hire foreign professionals in specialized roles, such as scientists, engineers, and computer programmers. The visa is usually valid for three years and can be extended for up to six years.
**Reasons for Fee Increase:**
President Trump, in alignment with his ‘America First’ policy, asserted that while the H-1B visa program was created to attract high-skilled workers, it had been misused. He argued that companies utilized the visa to employ foreign professionals at lower salaries, displacing American workers. Trump believes the new regulations will preserve American jobs, ensuring that only highly skilled individuals are granted entry.