Former President Donald Trump has introduced a new executive order concerning H-1B visas, increasing the fee to $100,000, effective from September 21st. This change primarily affects Indian nationals, who represent the majority of H-1B visa holders. The directive is aimed at companies that hire Indian IT professionals.
According to the new order, companies seeking to sponsor an employee from outside the US for an H-1B visa must demonstrate payment of the $100,000 fee. This stipulation targets employers, not the visa holders.
Exemptions are in place. Current H-1B visa holders already in the US are not subject to the fee. However, if a visa holder has been outside the US for more than 12 months, they must return before the specified deadline to avoid the fee. The Secretary of Homeland Security can grant exemptions based on national security, economic interests, or public benefit. Employees in defense, healthcare, or crucial technical fields contributing to US interests may also be exempt.
Indians will be most impacted, with the majority of H-1B applications in 2024 originating from India, primarily from the IT sector. The order is initially for a year but may be extended.
Trump argued that the H-1B visa had been misused, with companies using it to bring in lower-paid foreign workers, thus displacing American workers. The new rules are designed to protect American jobs and attract only the most qualified talent.
Legal challenges are anticipated, with legal experts questioning the legality of the $100,000 fee. Former immigration officials have expressed doubts about its legal viability.