The Trump administration’s abrupt decision to slap a $100,000 fee on H-1B visas has stunned and confused employers, students and workers from the United States to India and beyond.
Since announcing the decision Friday, the White House has tried to reassure jittery companies that the fee does not apply to existing visa holders and that their H-1B employees traveling abroad will not be stranded, unable to re-enter the United States without coming up with $100,000. The new policy took effect at 12:01 a.m. Eastern Sunday.
Despite the efforts at reassurance, “there’s still some folks out there recommending to their H-1B employees that they not travel right now until it’s a little clearer,” said Leon Rodriguez, a partner at the Seyfarth law firm.
H-1B visas were introduced to help U.S. companies employ foreign workers with specialized skills. They are crucial for attracting talent, especially in technology, healthcare, and other sectors. However, critics say they undermine American workers by allowing companies to hire potentially lower-paid foreign labor.
With the new $100,000 fee set to significantly raise costs, analysts believe it may deter many smaller businesses from participating in the program, ultimately affecting the U.S. job market.
Many aspiring students and professionals from countries like India are now feeling uncertain about their future, questioning whether they should pursue their ambitions in the U.S. or look for opportunities elsewhere. This shift could have long-term ramifications for the economy and labor market dynamics in America.
Experts suggest that this move may create advantages for competitors in countries like Canada and Australia, which maintain more welcoming immigration policies for skilled workers.