Trump’s $100K H-1B visa fee: How much money will employers really pay? Explaining the bombshell move’s fallout

The H-1B is one of the most popular work visas in the US, which allows American businesses to hire highly qualified foreigners. Now, several people are worried about visa revisions and new criteria after Trump announced a $100,000 yearly fee per H-1B worker.

Trump’s move aims to counter widespread systemic exploitation, according to officials, when lower-paid foreign workers displace American labor, especially in the information technology industry.(Bloomberg)

According to current US legislation, the sponsoring company is responsible for paying nearly all H-1B visa expenses, including the Labor Condition Application (LCA) filing fees, the non-immigrant worker I-129 petition fees, and any administrative or legal fees related to visa processing. Employees cannot be forced to pay these fees by their employers, with the exception of some restricted situations involving optional services like premium processing.

Currently, there is a $215 modest registration charge to enter the H-1B lottery. Filing fees vary from $1,000 to $2,500, based on the company’s size and other considerations.

These expenses are covered by the employer, so the employee is spared the cost of securing authorization to work in the United States.

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Here’s why employers pay H1-B Visa fee

This policy’s justification is to prevent exploitation of foreign workers. If employees are forced to cover their own H-1B expenses, it may put a strain on their finances and restrict their access to US job prospects. Employers who directly profit from the talents of H-1B workers are guaranteed to cover the cost of the visas under this employer-paid scheme.

Rationale behind Trump’s move

Trump’s move aims to counter widespread systemic exploitation, according to officials, when lower-paid foreign workers displace American labor, especially in the information technology industry.

The new law requires firms to shell out a $100,000 fee per petition in order to hire foreign workers from outside the nation on H-1B visas. The goal of this fee is to keep access to elite individuals while increasing expenses for businesses who abuse the program.

The limitation will be in place for a twelve months duration, but it may be extended following a review from federal authorities.

Trump’s new move fallout

The hefty cost, according to experts, may deter firms from applying for H-1B visas, particularly start-ups and smaller enterprises that would find it difficult to pay. There may be fewer applications submitted, which might mean less prospects for international workers.

The shift could be advantageous for US IT workers as US talent may be given preference over international labor.

For entry-level jobs, the H-1B visa has frequently been utilized to employ foreign workers at cheaper rates, which can help save money in contrast to hiring Americans. The $100,000 charge makes recruiting foreign workers equally expensive, which might reduce the appeal of H-1B sponsorship.