WASHINGTON: U.S. companies aiming to hire highly skilled international workers can utilize the federal H-1B visa program by paying a fee, enabling tech and other professionals from overseas to work in the United States for a limited period.
Since taking office last year, President Donald Trump has implemented broad immigration restrictions and has criticized the program, proposing to increase the fee from its current range of $2,000 to $5,000 to over $100,000 permanently.
Despite ongoing criticism that some firms use these visas to employ lower-paid foreign workers instead of Americans, business associations and corporations argue that the visas are essential for recruiting top talent and filling skill gaps in certain sectors.
Established by Congress in 1990, these visas are especially vital for tech companies recruiting from India and China. Major consulting firms like Deloitte, PwC, and Ernst & Young, along with outsourcing leaders such as Tata Consultancy Services, Infosys, HCL Technologies, and LTIMindtree, are among the primary sponsors of H-1B visas.
Below are additional details about the program and recent developments under the Trump administration:
Who is contesting the fee increases?
Last year, Trump significantly increased the H-1B visa fee to $100,000, which led to several lawsuits.
Although his initial hike is set to expire in September, the Department of Homeland Security has recently proposed making the fee permanent at $103,265.
An organization representing India’s tech industry has stated it is engaging with U.S. stakeholders over the proposed fee hike and has urged the government to consider the benefits these visas provide in addressing temporary labor shortages.
Companies such as Tesla, Amazon, and OpenAI have faced scrutiny regarding their use of H-1B visas, especially amid layoffs and a tightening job market affecting American workers.
Will existing lawsuits challenge the new regulation?
A federal appeals court in Boston is currently reviewing a decision from June, where a judge ruled that the fee increase was unlawful and blocked the Trump administration from collecting it.
Another court is examining whether a judge properly dismissed a challenge to the fee filed by the U.S. Chamber of Commerce, the country’s largest business lobbying group.
States led by Democrats, along with unions and employer groups, have also filed lawsuits. These legal cases may be amended to contest the new proposed fee once it is finalized.
How are stricter vetting procedures affecting employers?
Revisions to the vetting and processing of potential visa applicants have impacted hiring strategies, with some top H-1B users like Google expanding operations in India.
In December, the Trump administration announced increased scrutiny of H-1B applicants, including a focus on issues related to censorship and free speech.
The State Department instructed U.S. consulates to examine applicants’ LinkedIn profiles, resumes, and those of accompanying family members, especially for tech workers potentially involved in suppressing protected expression.
Impact on visa application numbers
The H-1B program provides for 65,000 visas annually, with an additional 20,000 reserved for candidates with advanced degrees. These visas are typically granted for three years, renewable up to six years.
Data from court filings show that as of late February, around 70 employers paid the $100,000 fee for a total of 85 visa applications.
Last year, employers registered approximately 344,000 H-1B applications, a drop of over 25% from 2024, and less than half of the 759,000 applications filed in 2023, according to U.S. Citizenship and Immigration Services data.