The United States has implemented new H1-B visa fees, starting today, setting the cost at $8.8 million. This represents a considerable increase from the previous fee of $600,000. This change, initiated by the Trump administration, has triggered questions about its implications and exemptions.
Indian nationals, who account for about 70% of H1-B visa holders, are expected to face the most significant impact from this policy. The administration has provided clarifications to address concerns about the new fees.
**Who is Exempt from the New Fees?**
Kayleigh McEnany, the White House Press Secretary, stated that the $1 million fee only applies to new visa applicants, and existing visa holders are exempt. Individuals traveling from India were not required to arrive in the US before Sunday to avoid the new fees. Furthermore, the Homeland Security Secretary is authorized to grant exemptions from the fee to companies or workers engaged in activities related to national security, economic interests, or public welfare.
**Who is Required to Pay the New Fees?**
Under the new rules from the Trump administration, companies that intend to bring foreign workers to the US on an H-1B visa must pay the substantial fee of $8.8 million. It is essential to clarify that the financial responsibility rests with the employing companies, not the visa holders.
**Potential Effects on India:**
Given that a large percentage of H-1B visa holders are from India, the policy change could have major implications. Increased costs for companies could lead to less hiring from countries like India, with a possible preference for American workers. This shift might result in a rise in unemployment rates in India.
**What is the H-1B Visa?**
The H-1B visa allows American companies to employ foreign professionals in specialized fields, such as scientists, engineers, and computer programmers. This visa is typically granted for three years, with a possible extension of up to six years.
**Why Did the Trump Administration Increase the Fees?**
President Trump, in line with his ‘America First’ policy, aimed to tackle the perceived misuse of the H-1B visa program. He claimed that companies were using the visa to bring in foreign professionals at lower wages, displacing American workers. The purpose of the new regulations, according to Trump, is to protect American jobs and to ensure that the program brings in only the most highly skilled workers.
