Companies in the U.S. plan to retain H-1B visa holders in the country following the recent suspension of deportations, according to reports.
In a surprising move, President Donald Trump has announced an unexpected increase in the H-1B visa fee, from a few thousand dollars in processing fees to $100,000 per year. This new visa fee, equivalent to around €85,000, is causing concern among U.S. tech firms, particularly those heavily relying on the H-1B visa to hire qualified foreign workers, particularly from India.
The new visa order is causing ripples of worry among companies about the potential costs of hiring foreign employees. Major tech companies, including Amazon, Meta, Microsoft, and JP Morgan, are reportedly urging foreign employees to stay in the U.S. following the new visa order.
The H-1B visa category, often used as a work visa, will incur a fee of $100,000 per year under the new order. This significant increase from previous processing fees may potentially make hiring foreign employees significantly more expensive or even impossible. Companies may have to weigh whether a job candidate is valuable enough to pay the additional cost to the government.
U.S. Commerce Secretary Howard Lutnick stated that the proposed change will make it difficult for companies to bring in inexperienced workers. The new visa fee could lead to an increase in hiring American workers instead of foreign H-1B visa holders.
The new visa order is not only causing concern for those already in the U.S. but also for those planning to enter. Foreign H-1B visa holders currently abroad are being advised to return within 24 hours according to a report. Those who cannot make it within the deadline are told to refrain from entering until further notice.
Amazon, for instance, employed over 10,000 H-1B visa holders in the U.S. as of June. Microsoft and Meta each employed around half the number of H-1B visa holders as Amazon. The new visa order is causing a stir among these tech firms about the potential costs of hiring foreign employees.
The report is based on communications from internal sources within the tech giants and employees, as well as government data. The proposed change is causing a wave of uncertainty and is being closely watched by the tech industry.
The new visa order is part of Trump's efforts to protect American jobs and promote the hiring of local workers. However, it remains to be seen how this will impact the tech industry, particularly in the long run. The tech firms are urging the government to reconsider the new visa fee, citing the potential costs and the impact on the industry.
As the situation unfolds, the tech industry is bracing for potential changes and is closely monitoring the developments regarding the H-1B visa fee. The new visa order is a significant shift and its implications are yet to be fully understood.
