"Bikram Chabhal, a visa consultant, asserts that 70% of H-1B visa holders are of Indian origin, following the announcement of a hike in US visa fees"
The US Commerce Secretary, Howard Lutnick, has announced a major overhaul of the H-1B visa programme, a move that aims to eliminate lower-skilled training positions while preserving opportunities for highly skilled workers.
According to Lutnick, technology companies have expressed their support for this change. The new fee structure, effective immediately following President Donald Trump's signed proclamation, will apply to all applications processed after implementation, including renewals. The fee for companies sponsoring H-1B applicants has been raised to USD 100,000, a significant increase from the previous total fee of $215 plus $750.
The new fee is applicable to all H-1B positions regardless of salary level or skill requirement. Enhanced vetting procedures by the Department of Homeland Security will accompany the rollout, which is expected within weeks. The program is now expected to target senior-level positions instead of junior and mid-level engineers.
The changes in H-1B visa policy are framed as protecting American workers and boosting US revenue. The policy shift could indirectly benefit India by bringing back skilled workers who may contribute to the country. However, Indians, as the largest share of H-1B beneficiaries, stand to lose the most from this change.
The H-1B visa quotas remain unchanged at 65,000 regular visas plus 20,000 for advanced degree holders. However, fewer applications are expected due to the cost barriers imposed by the new fee structure. This could potentially reshape strategies for US engagement for Indian professionals and companies, forcing a move toward higher-value services and reducing reliance on junior-level worker transfers.
The increase in fee may cause companies to struggle financially. The new H-1B visa fee of 100,000 US dollars per year for employers was implemented as part of an executive order to restrict the number of applicants for these work visas. Exact start dates beyond this immediate effect in 2021 are not specified. The enhanced application procedures by the US Department of Homeland Security have not been given a specific implementation date in the available information.
The new policy is intended to make the H-1B program viable only for roles that justify such a substantial cost, aiming to bring in high-earning, high-value workers, contrasting with previous policies that allegedly brought in low-earning workers. The changes in H-1B visa policy are a deliberate strategy to eliminate lower-skilled training positions while preserving opportunities for highly skilled workers.
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